The Magic of Name

There are not many people in this country who remember how the first TV commercial about a bank was shown in the USSR at the end of 1980-s. A short advertising spot of the Citibank, with its ‘Your city never sleeps’ slogan was broadcast during famous ‘television bridges’ between members of the Supreme Soviet of the USSR and American congressmen. Nobody was thinking at that time that this financial establishment would be able to open its office in our country in a few years. Just like any other bank though.

A successful, and thus memorable, name is a significant component that contributes to the prosperity of the financial institution. The prospective clients appraise, first of all, how the bank presents itself, and only after that they consider economic and rating criteria.

National Characteristics

In the United States, when a bank changes its name, there isn’t much to it.  As a rule, a brand name’s change occurs when the business grows bigger, or as a result of a merger or a takeover. But there are other reasons, too. Financial organizations that are focused on retail business are trying to look more accessible and up-to-date. One of the largest banks in the US West coast is called simply and unpretentiously – US Bank. Another, a very famous credit institution is called Wachovia Bank. The word ‘Wachovia’ has Slavonic roots, but the fact that it was founded at the end of the 19th century by Moravian settlers has become a legend long ago. After the merger, it could have been called the First Union Bank, but the bank’s top-managers believed the old name sounded better.

In Europe, the names are changed less willingly. In the UK, the leaders of the financial market have the same names as they did a hundred years ago. For instance, after Barings Bank – the oldest merchant banking company in England – crashed, many efforts were undertaken in order to save it, although only the name of the bank was actually left. This respectful attitude to tradition is common in Germany and Switzerland, too

In the course of fifteen years since the private credit-financial system was established in Russia, no one among the business owners took a risk to give his own name to the bank (practice commonly used in Europe). The bank founders were not able to predict if a bank had any future, or it would end up in disgrace. As the years went by, the local-sounding or too lengthy ‘titles’ had to be replaced. Renaming of Bashcreditbank that has turned into FK Uralsib, may be considered one of the most successful, as well as the replacement of Doveritelny Investment Bank’s name by the KB Trust. Here we can also mention a campaign aimed to give clarifications, which was conducted by Moscow International Bank, when its merger with Bank Austria Creditanstalt occurred.

Unfortunately, there are no clear-cut criteria we could use to define the ‘success’ of any financial institution’s name. It is possible though to arrange focus groups, or attempt to analyze the associations that particular names invoke among the general public or business circle representatives.  Once, a remarkable name helped Junius Morgan, the father of John Pierpont Morgan, open his company’s branch in London and persuade the financial moguls of the Old World that investments in the Northern American economy would be profitable.

Go West!

Today, the majority of Russian financial establishments are not able to compete with their Western partners and competitors in the sphere of capitalization and profits, or in their market share gains, and even in the level of salaries their top-managers have. They are successful, however, in promoting their positive image in the Western business community; they create a reputation of reliable partn?ers and decent entrepreneurs. Unfortunately, only a tiny number of Russian banks are aware of the necessity to integrate in the world financial system. And that is the reason of their depriving themselves of further growth.

Now, when the memory of the Enron downfall is still fresh in Unites States, and Europe is discussing the bankruptcy of Parmalat and Deutsche Bank’s problems, the endeavors to improve one’s image acquire particular significance.  The investors in the West are looking for new options, and international corporations expand their circles of partners.  Those Russian banks that can take advantage of the current situation will be rewarded with opportunities for successful development.

What do home-grown banks have to do if they want the Western public to assess their image favorably?  There is no doubt that they have to position articles and advertising in business media abroad, especially in the English speaking countries. The fact that a renowned international business publication contains information about a Russian bank will be regarded by the partners and other Western market players with respect, especially if this publication is properly used by the PR practitioners. The information about that, together with the text of the article (with reference to the source) should be placed on the corporate website and in the Russian business press.  It has to be employed in direct marketing actions, too. It is worthwhile to mention this fact in a CEO’s public speeches and to cite the published text in corporate promotion materials: in an annual report, for instance.

Taking into account the tremendous effectiveness of publications in the Western media, the cost of these efforts doesn’t seem to be very high. It is advisable to remember that not only well known in Russia periodicals - Financial Times and the like - need to be paid attention to. Western businessmen do not read only daily newspapers, they are subscribers of specialized editions, which could be very useful for Russian companies, too.

Text by Dmitry Dorovsky, Creative Director of the Publicity PR Agency

Natsional’nyi Bankovskii Zhurnal #2 (15) February- March 2005