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Should banks drop the word ‘bank’ from their names?
While there are pros and cons to using or not using the word "bank" in their brand names, such financial institutions should look at both sides before deciding whether or not to jump on the current trend.
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Under the sky: Bank-owned skyscrapers are seen after office hours amid the COVID-19 pandemic in Jakarta on Aug. 27, 2021. (AFP/Bay Ismoyo)
T
he word "bank" is now considered a detriment in financial institution marketing for some people, including marketers who deal with customers on a daily basis. Although the practice is still in its early stages, an increasing number of financial institutions are removing the word "bank" from their visible brands in an effort to be more appealing to customers.
Even though "bank" must be included in the official names of banks operating in Indonesia, as well as ASEAN, most banking institutions are now marketing themselves using abbreviations or without the word at all. People are more familiar with institutional brands like Standard Chartered, HSBC, ANZ, UOB, CIMB, BCA or Mandiri than their full-length, formal names. Maybank is an exception to the trend because removing "bank" from its name would sound strange.
The word "bank" is conspicuously absent from the brand names of many digital banking competitors, including Jenius, Blu and Livin. Others, including Allo Bank and Neo Bank, continue to use the word, possibly intentionally to help consumers understand that theya re more than just a financial technology (fintech) company or a mobile application. Bank Jago might be another exception, too, because it sounds like “bang jago”, an Indonesian vernacular that is similar to "bro" in English.
Before embarking on a major rebranding effort, however, financial institutions must ensure that they are not simply reacting to a current trend. This line of reasoning can be understood when viewed in a certain light, at least partially. Although this strategy has the potential to benefit some, the vast majority of financial institutions should probably avoid it.
This is because unless they operate in a market where they have a significant presence or are a massive global institution, the majority of banks risk losing mindshare with the average customer if they dropped the word "bank" from their names.
Nonetheless, a number of factors may prompt some institutions to consider dropping the word "bank" from their names. One is the meteoric rise of fintech as a competitive driver, combined with the fact that the majority of fintech companies focus their marketing and messaging on attacking banks. The names of fintech companies are typically hip, simple, easy to pronounce and exclude the word "bank", because they are not banks.
Customers taking their money out of banks due to their religious beliefs can be another reason, at least in countries where Islam is the dominant religion, like Indonesia and Malaysia. This could also influence the decision of some banks. Removing the word "bank" from its name could be an alternative approach to encouraging Muslim customers to continue using an institution’s financial services, similar to how there is a growing trend to include halal or sharia in a company’s name.
