Redefining your brand creates new opportunities, markets

While branding has been around for centuries, its importance in banking grew in the 1980s when interstate branch banking became legal. Until then, banks with similar names didn't commingle markets. Now, banks can find up to 60 companies within their markets with similar names, many of them in the financial services industry. "Competition is everywhere," said Martha Bartlett Piland, certified financial marketing professional with Banktastic. "Having a brand that is really strong, that people know what that is, is super important.".The five key elements seen in successful brands, according to Bartlett Piland, are that people trust the brand, talk about it, associate with it, are willing to pay more for it, and are loyal to it. "If you've built those, over time, there is more opportunity for revenue and profit.".As part of the branding process, banks need to stop thinking of themselves as a commodity where what they offer is identical to what every other financial institution offers. They need to look at where they are different. "What is our brand promise, what are we about?" she said. "If we don't know what our promise is, that should be part of [brand] development … to differentiate and elevate your institution in the marketplace." .Banks should engage employees at all levels and in all departments as part of the process: "We need to make sure everybody in the bank can help us make a promise we can keep.".Bartlett Piland also encourages community banks to engage as many of the five senses in the rebrand as possible. "Brands are emotional," she said. "The more senses we can bring into that engagement, the more powerful it can be." For sound, banks can consider an auditory cue, branded voicemail messaging, or on-hold music. For touch, she gave examples of textured marketing collateral like die-cut business cards or furniture in the lobby. As for taste, "we offer hospitality in our locations. What if you're about financial health? Maybe offer herbal tea or kombucha. Or gifts to business clients — cookies vs. granola bars." The smell of popcorn triggers the image of a movie theater. What does high-touch, personal service smell like — and can that be incorporated into the brand? .Since March 2020, more than one-third of financial institutions have rebranded. While that large of a share is unusual, it's not a bad idea to evaluate a brand every few years, Bartlett Piland said. She also said banks considering rebranding should work to find an identity that appeals to a broad audience. "Multiple generations need to be relevant," especially those born between 1981 and 1996, Bartlett Piland said. "Millennials are really, really important."."There's going to be a huge wealth transfer" in the next few years, and millennials will have five times as much wealth in 2030 than today, she said. On average, millennials and Gen Zers are expected to inherit $320,000 per person, and recent studies estimate that between $84.4 trillion to $140 trillion will pass from baby boomers to millennials in the next 20 years. ."Of course, not all millennials will inherit wealth. But all of them do have needs and concerns that many financial institutions overlook," said Bartlett Piland. "For example, about half of millennials invest in or want to invest in real estate. But their real estate goals are different from those of previous generations. Millennials will buy a house with other people who aren't a spouse or partner. Many are interested in owning homes or creating additions for Air BNBs. Others want to do house flipping. Those are not the typical setups many lenders have offered in the past."."For banks to be strong and viable in the future, they must be cultivating relationships with millennials now," she said. "And they must be altering products and services — and the way they market them — to appeal to this generation who does things differently."