List of re-branding banks grows

Canara initiates image makeover following BoB’s huge success

MUMBAI: With 2009 promising a level playing field to foreign banks, Indian banks have been rushing to not only bulk up efficiencies, they are also rushing to shed their staid public-sector branding.

While changing public perception is one step, a new identity also helps draw new customers — just ask Bank of Baroda (BoB).

Over the last two years, private sector entities such as Catholic Syrian Bank, Jammu & Kashmir Bank and South Indian Bank have all gone for a new fascia, apart from BoB.

The youngish, upmarket mien helps elsewhere too — with more than half of the country being 25-years-old or less, it pays to look young.

“However, this should be done without alienating its existing clientele. Banks work on trust. Thus, success of such re-branding campaigns lie in integrating a new look while retaining their earlier allure,” points out a veteran adman who did not wish to be named.

Says M B N Rao, chairman and managing director, Canara Bank: “In the fiercely competitive financial services industry, it has become imperative, if not mandatory, to rebuild our brand in order to attract and retain customers who have a wide range of alternatives. We also have to take into account post-2009 scenario, when foreign banks will have access to more organic and inorganic growth.”

Brand consultant Atul Phadnis says earlier, the strength of a bank was access to markets. “Today, accessibility no longer guarantees clients.”

The success of snazzy private sector banks and also the State Bank of India and BoB lies in mobilising cheap deposits.

Sample this: BoB had lost business the size of a Dena Bank in the 5 years before its re-branding. Its market share shrunk from 5% to 3.5%.

But in the two years after it roped in cricketer Rahul Dravid as its brand ambassador and went on an extensive image makeover, BoB claims to have gained business the size of a Vijaya Bank.

Its number of depositors has increased by 5 million to around 30 million.

Like BoB, Canara Bank’s image makeover has also been charted by global giant WPP’s branding consultancy, the Bangalore-based Ray+Keshavan, and O&M.

However, the approach to re-branding for these banks was quite different.

BoB chose to rope in a brand ambassador to ensure good recall, while the Canara Bank campaign is more sedate and relies on models to do the job.

Earlier, Indian bowling coach Venkatesh Prasad used to endorse the bank.

However, BoB has a word of caution for banks considering re-branding.

Dipankar Mookerjee, general manager, human resources and marketing,  says the easier part is to pay a design consultant some money.

“But once you make a promise to the market, you have to deliver. The changes have to be rigorous. To meet expectations of the market, global best practices have to be adopted in every stage.”

How Canara accomplishes this inside-out makeover will determine the long-term success of the rebranding exercise, say analysts.
 
n_john@dnaindia.net