Commercial banks re-brand to refresh image, raise profile
by Ha Phuong
Several commercial banks are beginning a trend of changing their logos and marketing slogans in a bid to update their images.
"Creating a good brand name is an urgent need that banks should consider because banking is a business of public confidence," said Do Dang Tan, a marketing analyst with a Ha Noi-based company.
Among them, Southeast Asia Bank (SeABank) has changed its logo and introduced its new motto, "Linking life's value". Viet Nam International Commercial Bank (VIB) has changed its logo and offered the new slogan, "The heart of banking", as part of an overall branding strategy aimed at making customers perceive the bank as more innovative.
"We have found that a period of economic downturn is a good time for us to review our system," said VIB general director An Thanh Son, adding that business strategies were crucial in the development of any firm with brand name strategy playing an especially important role.
With the tagline "Creating sustainable value" and a new logo, Maritime Bank was trying to prove its sustainable strength and judicious operating strategy.
Earlier, Viet Nam Industry and Commercial Bank (Incombank) changed their brand name to the now widely-known VietinBank. DongA Bank and Sacombank have also rebranded in the past.
Historically, Vietnamese banks have focused on their core business and not paid attention to branding strategy, say industry experts. But with the advent of a new emphasis on branding, domestic banks were now attempting to differentiate themselves from competitors in a crowded market and target customers.
"But, to some extent, brand names in the domestic banking system aren't very good," said Nguyen Thi Kim Thanh, a senior officer from the Banking Strategy Institute. "This explains why, after attempts to change logos or mottoes or offer new products, very few banks are identifiable in the minds of customers."
A report released in a seminar entitled Brand Names for the Financial and Banking Sector 2009 showed that no Vietnamese banks had made expenditures on market research or invested in media to build their brand names. Very few banks had conducted actual research to identify potential customer bases.
Many banks had targeted the retail banking sector, the report noted, but most of the products they offered were indistinguishable from those of their competitors, except for slight differences in interest rates. Retail products failed to offer added value.
"Building a brand name is definitely not simple and easy," commented the general director of a HCM City-based bank. "Branding is not just a matter of paying money and realising a profit. It needs a long-term strategy with a comprehensive effort by the bank to build the capacity of employees, network, technology and added value."
"A brand name should support a business to distinguish itself from other players in the market, while suggesting it remains friendly and close to its customers," said Tran Viet Hung, director of the National Office of Intellectual Property (NOIP).
"The effect of the new Maritime Bank logo is really significant to me," said customer Nguyen Hoang Ha. "It makes me to pay more attention to the bank."
"I don't know if it affects how they operate, but the visual impact of the new logo is remarkable," said customer Do Thi Hai. "But I'll only put my money into the bank when I think they are doing well." — VNS