Banks in Nepal are one of the biggest spenders on advertising and promotion. All banks are trying to create their niche through brand identity and positioning. While the older commercial banks enjoy the privilege of better brand image and command respect in the minds of customers due to their long standing presence, the newer banks are putting in great effort to establish their brand name.

 

Well reputable banks such as Standard Chartered Bank, Everest Bank, Nabil Bank, Himalayan Bank and Nepal Investment Bank have a different kind of image among general public that can be attributed to their early mover advantage and robust financial performance in the banking sector. Standard Chartered Bank being a multinational company seems to follow centralised branding approach set by its parent company with localised content to suit the Nepalese audience. Its target customers are mostly middle to high-end individuals. Hence, it uses sophisticated message in all its communication mediums. Its print and broadcast medium follows the same branding framework which gives a consistent feel in its communication materials. As the bank has positioned itself globally as Here for good which represents positive change in all the countries it operates by providing quality banking services. It also shows their inclination towards CSR as an integral part of their company value which has been incorporated in their branding. Similarly, the other established banks have their own distinct brand identity which has helped in enhancement of their brand image.

 

It is evident that any type of product promotion is done to compete with similar products in the market. As there are 31 commercial banks, there is tough competition among newer banks to attain share of mind among its customers and to break the clutter. However, the banking sector has healthy competition as compared to FMCG or any other sector as the whole banking fraternity is collectively trying to gain back the lost confidence of consumers due to the liquidity crisis.

 

Among development banks, the branding of Ace Development Bank seems to be the most prominent and ranks highest in terms of awareness due to its consistent and clear positioning. It has chosen a Rhino as its mascot which represents security and also its CSR activity focuses on Rhino conservation. The TVC of Ace featuring the Rhino mascot is very unique and of high quality animation. It has done secondary brand positioning via its advertisement, giving emphasis to the branding and security rather than its actual product attributes. Every aspect of the TVC is perfect, and it also hits competitors by saying It's a jungle out there, convincing customers to choose Ace for their financial security out of the numerous banks in the market.

 

Unlike foreign banks, most Nepali banks do not actually follow a set guideline for branding and are limited to being informative and product focused rather than in branding. Talking about foreign banks, HSBC is named one of the world's most valuable banking brands by The banking magazine. Established in 1991, the HSBC group operates as a number of local brands around the world. Hence, its advertising tagline explains its global positioning as The World's Local Bank. This popularity and awareness does not come overnight, it's their smart branding strategy right from the start-up phase to the present day that has made it the ultimate banking brand. HSBC account has been handled by WPP group in which JWT is the lead ad agency. The point is, in order to be the best bank, branding must be done right from beginning so that there will be high brand equity as the company grows. Creating a robust brand identity via its communication is one of the highest priorities for any brand. 

 

Among the younger breed of banks, NMB has focused well on branding as compared to newer competition. NMB's target is middle-class to high-end customers and its TVC and print ad has positioned the bank as a young and reliable bank and has brought products and services in line with its target customers. KIST Bank's branding advertisement is quite good and its awareness level is very high. Though it is in top of mind in terms of awareness, it has yet to gain confidence of its stakeholders. Also, its metaphor TVC is complicated for its targeted grass roots customers to comprehend so there is a mismatch between the segmenting and the positioning of KIST. Other banks such as Laxmi Bank has positioned itself quite differently as the one bringing in innovative high-tech banking in the Nepalese market. This is the Point of Differentiation (POD) of the bank. Also, its bright orange color has helped a lot in its brand awareness as people relate the color orange with the company. BOK branded itself as Be OK which is quite interesting and catchy. Everest Bank's testimonial ad featuring all demographics conveys first person views including that of housewife, youngsters, working adults, children and older people. This represents their distinctive image of strong, consistent and progressive among competitors.

 

In a developing country like ours, banking sector has far exceeded people's expectations and has adopted international standards to a certain extent. The large volume of banks has actually been beneficial for the customers as they can choose the most suitable bank among the existing banks. In the time of liquidity crisis where banks are focusing more on deposit mobilisation, it is understandable that spending extra budget for branding might not be reasonable. However, situations might improve in the near future and branding shall certainly take priority as banks have to differentiate themselves to compete to be the best. However, branding and placement of product offerings have changed in the past few years where marketers have started using various non-traditional mediums as well as traditional mediums but in a different way for promotion. Social networking sites such as facebook and twitter has played a pivotal role in the contemporary advertising scenario. Smart placement of products and services in movies and reality shows has also been seen in recent times. Viral marketing (strategic use of Internet combined with word of mouth promotion) and PR are also some latest marketing tools that can be used for the betterment of brand image, which the banking sector in Nepal can adopt.

 

(Karki is currently associated with Thompson Nepal Pvt Ltd and has a couple of years of experience in the banking sector. The article is based on research and authors practical experience as a marketing professional. He can be reached at [email protected])