With the aim of becoming
a modern, universal bank, Russia-based Moskommerzbank has undergone
a major rebranding. Clive Woodger, managing director of branding
and design consultancy SCG London, and Moskommerzbank chairman
Beibit Apsenbetov, discuss the challenges of the project with
Douglas Blakey.
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Having
concluded that its existing brand identity was not an appropriate
image for a modern universal bank, Russia’s Moskommertsbank set to
work.
The key challenge was how
much change was appropriate to build on its current brand equity,
while growing its customer base.
In the end, the project
incorporated a comprehensive communication strategy from a new
brand platform; an overhaul of the bank’s corporate identity, a new
marketing communications strategy through to new branch concept
designs for exteriors, interiors environment and
shopfitting.
Working with the UK-based
branding and design consultancy SCG London, Moskommertsbank kicked
off a series of focus group sessions in Moscow and St
Petersburg.
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By GlobalDataThe aim of the exercise was
to sound out the public on current attitudes towards the banking
sector in general and bank branding in particular.
Clive Woodger, managing
director of branding and design consultancy SCG London, and
Moskommertsbank chairman Beibit Apsenbetov discussed the extent of
the project with RBI.
Retail Banker
International (RBI): Can you summarise the bank’s
remit to SCG London? What were you asked to help the bank
achieve?
Clive Woodger
(CW): Moskommertsbank approached us as it needed to:
rebrand its operations to signal a new strategy; change its
customer proposition; and update its services and facilities in
line with its new and existing target customer
expectations.
The change to become a
universal bank, attractive both to retail and corporate customers,
required a significant change in perceptions from the existing
image of the bank as a purely business operation, with a rather
opaque old fashioned approach.
The new management understood
this would require a clear repositioning, but also a need to
maintain the confidence of its existing business customer
base.
RBI: In
what way was the bank’s existing brand failing? What needed to be
fixed?
CW: Our
initial audit of the bank’s branches, communication and services
identified the issues of a ‘closed’ anonymous organisation , a lack
of clear profile as just another private business bank with an old
fashioned image with undistinguished services and
products.
Some negative Russian
perceptions of its Khazakstan parent bank – Kazkommertsbank – were
noted. However, there was clearly a need to positively reflect the
linkage to a major financial institution which provided a guarantee
of long term stability and strength balanced with being seen as an
independent local Russian business focussed on Russian customer
needs and requirements.
RBI: What were
the brand qualities the bank wanted to bring
out?
CW: The
final profile and characteristics of the new brand positioning were
agreed after reviewing potential routes of modern bank development
as customer centric service providers.
The potential harder ‘values’
of a bank being smart, functional, practical and efficient with
dynamic modern, forward looking and resourceful attributes were
recognised. However, the final agreed positioning was based on
softer values – a responsive, listening, open and transparent
approach.
The brand style developed
aims to be human and personable, interactive, lively and informal –
traditional values with a contemporary feel.
RBI: What was
SCG London’s perception of what is still a very crowded Russian
banking market? How could a rebranding exercise help
Moskommertsbank stand out from the crowd?
CW: The
sheer number of Russian banks stems from a history of a rather
dubious lack of control on who can set up a bank.
However, the crowded market
is seeing an inevitable rationalising of banks characterised by
mergers and acquisitions. The major government-owned banks –
Sberbank and VTB – with large market share advantages, have the
perceived advantage of stability and trust.
Accepting that no one loves
their bank, particularly post-crisis – and, as in the West, most
are regarded with a ‘devil you know’ attitude – offered an
opportunity for the smaller banks to carve a niche. But only if
they can offer a more personal customer oriented
approach.
By leveraging this more
focussed offering, a bank with appropriate upgraded customer
experience can use its ‘newness’ to its advantage. I certainly feel
that Moskommertsbank has a real opportunity to develop its new
offering as a positive alternative to the ‘big boys’ and other
established Russian banks which all suffer to some degree the
baggage and association with general customer disillusionment with
the banking sector.
RBI: How has
the bank tackled the challenge of ensuring staff buy into the
bank’s strategy and live up to the promises conveyed by the bank’s
revised marketing message?
CW: From the
outset we have worked with different departments in the Bank – HR,
marketing, real estate and product development to understand their
current issues.
The aim has then been to
communicate and develop a new bank personality, which can be
reflected across all customer touchpoints from advertising to
branch visit.
The most important of which
comes down to the bank personnel and their interface with
customers. At an internal launch presentation with all members of
staff I presented the following brand personality traits:
approachable, welcoming, sociable, warm, cheerful, engaging,
careful, thoughtful, sensitive, creative, imaginative, inspired,
resourceful, helpful, attentive to detail, doing simple things
well.
I suggested this was pinned
over their beds as a reminder to be the nice human beings I was
sure they were. However, we all recognise these attributes do
represent the toughest challenges for any business to aspire to and
achieve on a daily basis. The presentation was positively received.
So the challenge will be maintaining the enthusiasm and the fresh
start the rebranding initiative represents.
RBI: When one
thinks of Russian banks with strong brand images, Alfa or VTB24 for
example, come to mind. How can Moskommertsbank compete with such
banks, when presumably the branding and marketing budget will be so
much less than at bigger rival banks?
CW:
Competing with the big boys is, as noted, about leveraging the
advantage of being totally customer focussed with a personal
service a small bank can offer as an alternative to being seen as
just another account by a major operation.
The marketing slogan ‘on your
side’ exemplifies this customer-first platform. On the basis that
personal recommendation is the most effective marketing –
particularly in this age of social media and transparency – the
lack of budget for traditional marketing media is not necessarily
the disadvantage it once was.
Big awareness campaigns are
not relevant for Moskommertsbank at this stage but focused
initiatives through direct data-based marketing and local event
profile building can be carefully targeted and
leveraged.
RBI: In
carrying out an audit of the bank’s marketing strategy, what
lessons were learned?
CW:
Traditional marketing media in terms of advertising and leaflets
has been upgraded in line with modern bank practices. A consistent
recognisable signature and appropriate messages are obvious
disciplines that we have prepared guidelines on.
We have proposed an emphasis
on customers and staff talking ‘to you’ rather than ‘the bank’
talking ‘at you’ in advertising campaigns. However as noted, the
opportunities and challenges provided by social media and online
direct marketing will become increasingly vital for a more savvy
city-based clientele.
RBI: What next? Having
sorted out a new brand identity, how is that being
executed?
Beibit Apsenbetov
(BA): First of all, the Moskommertsbank rebranding is
linked to the rebranding of Kazkommertsbank [the Kazakhstan-based
parent of Moskommertsbank] rather than radical changes in the
bank’s strategy.
The rebranding of Kazkom
started before the crisis and it was the crisis that did not allow
the rebranding of Moskommertsbank to happen at that time as it was
more important to deal with the consequences of the crisis. Now,
after Kazkom has demonstrated its viability as a financial group
during the crisis period, it is time to come back to the normal
work pace and continue our development plans.
We think now is a good time
for rebranding in Russia. The very fact that we are doing it now
speaks for Kazkom’s long-term commitment to the Russian market and
its desire to continue working with the market.
Moskommertsbank, as its
parent bank, is aiming to become a truly universal, innovative and
customer centric bank. As a result we are developing a new line of
products and services, introducing a new quality of customer
service, developing our IT platform and introducing a new branch
design.
The new strapline
‘Moskommertsbank is on your side’ reflects the consumer focused
approach to banking.
RBI: How is
Moskommerzbank going to benefit in marketing terms from synergy
with KazKom? In what way is customer behaviour in Russia driven by
the KazKom partnership?
BA:
Moskommertsbank is a part of Kazkom financial group. The key visual
element of both the old and new Moskommertsbank logo is the rising
sun – this is also the key symbol of Kazkom.
This element connects
Moskommertsbank with the parent brand. The bank used some visual
elements of KazKom but interpreted them in its own way. The link
with the main financial institution of Kazakhstan gives clients an
additional guarantee of reliability: the bank with a history and
heritage is trusted more.
Market professionals know
Kazkom as a leading financial institution in the post-Soviet space.
We are well represented not only in Kazakhstan but in all of
Central Asia. We have bank subsidiaries in Kirghizstan and
Tajikistan.
In Kazakhstan we offer the
newest business technologies and innovative products. We are
certain that we’ll find our niche in the Russian market. At the
same time Moskommertsbank is widely known in Russia, first of all,
for its mortgage loans offer. At some point we were even market
leaders in Russia in this segment.
During the crisis, the banks
with rapidly growing consumer loans and mortgage loan portfolios
suffered the most, but the amount of bad loans at Moskommertsbank
was not higher than market average. Moreover, during the crisis
period our portfolio demonstrated a good liquidity. We believe –
with the recovery of the real estate market – Moskommertsbank will
regain its portfolio.
This crisis was a good
learning curve for us and we resisted it. In the future we will aim
to have a more balanced portfolio in terms of our assets as well as
of our liabilities.
RBI: Can you
say anything about the KPI’s of the exercise? How will you judge if
the exercise has been successful?
BA: It is
still too early to speak about the results of the rebranding in the
Russia. Rebranding in Kazakhstan has been successful. Many leading
banks in Kazakhstan decided to follow our example which is quite
revealing.
Logo and design are important
but what is even more important is what is behind the visual
identity. If our customers associate our bank with a positive
experience, the brand works; if they don’t – the brand is nothing
more than a beautiful emblem.
