BANKING on the BRAND: HSBC

HSBC, Europe’s largest bank by market value, has been named the world’s most valuable banking brand according to the Banker magazine’s Top 500 Financial Brands listing. It was also the only bank featured in the study to achieve the highest possible triple ‘A’ brand rating. The strength of the band depends on the bank’s focus on emerging markets. A great example of this was the launch of HSBC Premier in September last year. Premier customers now have the ability to open accounts in 37 different countries and HSBC assist them wherever they are in the world using their network of branches and dedicated relationship managers. The benefits offered by Premier Banking Services include free travel insurance, preferential lending rates, and improved customer service.
But, what it takes to be the best banking brands?? Credit card oriented bank brand display the highest proportion of brand value to market capitalization. This is because emotional and image related factors are significant drivers of demand in this sector. Consumer-focused banks generally display a higher brand value to market cap than corporate-focused banks. This is because consumer banking involves more emotional and image related factors than business and wholesale banking. Investment and wholesale banks display surprisingly large brand values. This is because banks of this type do not need large retail networks, infrastructure and similar tangible assets. Much of their value is intangible and the two main assets are key personnel know-how and the corporate brand itself.

HSBC as a brand has been always on the forefront of creating and subsequent sponsorship of a new advertising channel: the ‘airbridges’-the gateways linking aeroplanes and passenger terminals - at major international airports. The bank’s ‘Managing for Growth’ strategic plan has reaped huge rewards in growing the earnings, shareholder returns and the overall global footprint of the business in the past.