All articles by Douglas Blakey
Douglas Blakey
2011 survey: another bad year
It has been a truly dreadful year for most banking markets around the world, reflected in some truly dire stock market performances. Out of a basket of 50 banking groups, only seven have seen their share prices rise across the year. And only one American Express is able to show a double-digit increase in its share price. If 2008 was considered to be an annus horribilis for banking performance in that year, only one major lender, Wells Fargo, posted an improvement in its share price 2011 runs itpretty close. Five of the biggest names in retail banking litter the foot of the share price table in 2011: Bank of America (share price down 62.9%), Royal Bank of Scotland (50.7%), Raiffeisen (54.6%), UniCredit (54.8%) and Lloyds (down a whopping 63.5%).
First direct again tops JD Power UK survey
HSBCs online banking subsidiary first direct has topped the 2011 UK Retail Banking Satisfaction Study by marketing consultancy JD Power. The score of first direct was 774 (out of a possible 1,000), followed by The Co-operative Bank with 734. Nationwide Building Society ranks third with a 723 score. The top three ranked lenders remain unchanged from last years survey. Head of customer services at first direct, Jason Sharpe, told RBI that the lenders performance has been consistent over theyears.
RBI launches 2012 Awards
Retail Banker International (RBI) has launched its 2012 industry awards to commemorate excellence in global retail banking. The event will feature awards for high achieving retail banks, individuals, service providers and vendors. Retail Banker International has been analysing the global banking industry for more than 30 years, and has a strong connection to the banking industry. This gives us a great platform to recognise high achievers and innovation, said RBI editor Douglas Blakey. We encourage banks of all sizes to nominate themselves and get involved in the 2012 awards.
People’s Choice sets out its stall
In the space of less than six months, Australias second-largest mutual, Peoples Choice Credit Union, has rebranded, ramped up its multi-channel investment and announced plans to launch a vastly expanded range of products. The product of a merger between Australian Central and Savings & Loans Credit Union’s, the Peoples Choice brand debuted in July 2011. Managing director Peter Evers summarises the aim of Peoples Choice succinctly: to provide a genuine alternative to the big banks, with a focus on giving back to our members and the community. In an interview with RBI, Evers discusses Peoples Choice brand strategy and branch refurbishment programme.
Virgin branch strategy off to flying start
There has been much hype arguably an excess of spin about Virgin breaking the mould of UK retail banking, following its successful bid for Northern Rock.But in terms of its branch strategy, Virgin has hit the ground running. It has teamed up with sector-leading design consultancy allen international to create branches designed to challenge the preconceptions of traditional banking, by creating vibrant spaces that foster more relaxed interaction between staff and customers. The lounge design has borrowed visual elements from the retail concept.
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Co-op ramps up challenge to Big 5
So much for the contention that the branch channel is dying on its feet. While total branch numbers have declined by 20% since 2000 Barclays alone has shuttered a net 496 units from 2,129 to 1,633 outlets and HSBC has reduced its network from 1,668 to 1,350 UK mutual the Co-operative Bank is swimming against the tide and plans further branch expansion. Providing a welcome boost for the UK high street, Co-op Bank managing director Rod Bulmer tells RBI: “We need a minimum high street presence of 500 branches up from 350 and can grow beyond that. “We are striving to offer customers a real alternative choice in the current market. I genuinely believe that there is space in the UK for an alternative to the Big 5 banks.”
Getting its face known
JSC TBC Bank may not be among the first names to spring to mind in European banking. But the Georgia-based lender deserves to be front of mind in terms of its innovative use of social media. It has not only used Facebook to promote its brand and serve as an important communicationtool; Facebook has become anintegral part of the banks marketing and communications strategy.JSC TBC head of marketing and communications, Salome Kokosadze, discussedwith RBI the thinking behind the banks social media initiative.
Branch numbers decline by 3% in CEE
Raiffeisen has overtaken UniCredit to become the largest bank by branches in Central and Eastern Europe. Socit Gnrale and Erste remain third and fourth by that measure and have both increased their branch networks despite the financial crisis. Overall in the region, 3% of branches have closed in the past year. Total branch numbers across the largest banks in Central and Eastern Europe (CEE) have fallen in the past year but by only 3%.
M-banking boosts Bankinter bottom line
A large number of retail banks lay claim to be truly innovative. Spains Bankinter has stronger claims in this regard than most. Recognising that it could never compete with rivals such as la Caixa, BBVA and Santander in terms of high street presence, Bankinter has thrown itself enthusiastically into investing in the digital channels. In particular, it pioneered in Spain the use of alternative channels such as telephone, internet and mobile banking, augmented by investment in service quality. At the heart of Bankinters strategy is the belief that digital channels, such as mobile, can serve as a key differentiator for banks as customers increasingly demand more flexible and convenient ways to manage their various accounts.
Clydesdale Bank to end football sponsorship deal
National Australia Banks (NAB) UK-based subsidiary Clydesdale Bank will end its sponsorship of Scottish footballs Premier League at the close of the 2012-13 season. Clydesdale Bank took over as title sponsor of the league from rival Bank of Scotland in 2007.