Standard Chartered was fined $327m by US authorities for violating sanctions against Iran but the reputational impact has clearly had an even bigger impact on its financial position; brand value is down by nearly $2 billion.
HSBC remains the UK’s most valuable bank brand, with a value of £17.5M. Both HSBC and 2nd placed Barclays have registered negligible growth rates of 1.5 per cent and 0.1 per cent respectively. They, along with most UK banks, have been significantly affected by a toughening regulatory regime.
Lloyds was the only one of the Big Four to show strong growth, having increased 16 per cent to £4.4bn. Brand Finance’s results suggest that CEO Antonio Horto-Osorio has masterminded a successful turnaround. Renovated branches and a refreshed image suggest a new confidence, helping to distance Lloyds from the problems of the company’s recent past.
Recently revived TSB has fared even better and is the UK’s most successful bank brand this year, having grown by over 21 per cent. Its marketing has emphasized not only its competitive rates but also the importance of straightforwardness, trust and heritage. It leads a field of increasingly successful challenger banks, putting more pressure on the established players.
Brand Finance CEO David Haigh, who piled the data, comments, “A strong brand builds loyalty, helping to reduce churn. As switching becomes easier and with nimble competitors emerging, some banks may have to rely on the power of their brand ever more heavily to hold onto customers.”
