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The brands of eight of the largest banks in the UK — including HSBC and Barclays — declined by an average of 7% over the last year, adding up to a collective $2 billion in lost brand value, according to data from Kantar, which uses financial data and survey results to determine brand value, cited by Yahoo.
Notably, NatWest was the only major bank studied to see an increase in brand value, rising 7% to $2 billion. The other banks’ losses were attributed to the rise of popular challenger banks like Monzo, Revolut, and Starling, as they’re biting into incumbents’ business.
The threat that neobanks pose to incumbents’ brand value likely stems from their success in managing their brands across banking channels:
Neobanks are physically recognizable. For example, Monzo’s coral-colored debit cards are easily recognized and highly visible, which can help keep the neobank in consumers’ minds when they see others using the card. And this tactic seems to be catching on across the banking sphere: American Express, for example, brought …read more
Source:: Businessinsider – Finance