A brand is much more than a logo or slogan. Brand identity creates familiarity and trust that ensures customer loyalty and a long-standing relationship. And branding in the financial services sector is no different. In fact, given the difficult recent history, banking and other financial services need to work even harder to create a brand that reflects its qualities.
Importance 1 – Recognition
Strong financial services branding sets you apart from your customers. Being instantly recognisable on social media, promos and other marketing material is essential. If you are a brand that your customers can trust, then there is an inherent feeling of safety when they are around you. And this isn’t something that customers give up easily.
If people aren’t able to easily recognise a brand or confuse it with another, then this will have the opposite effect of creating a familiar and trusting feel. Customers create subconscious barriers when they are uncertain. And this can undo years of hard work.
Importance 2 – Trust
Your company won’t always necessarily offer the lowest prices or the most comprehensive package of deals among your competitors. However, customers will oversee details like this if they are drawn instinctively towards a brand that they trust.
What you have instilled in your customers over time is a confidence that you will always deliver on your promises. And this can far outweigh other factors such as cost, for example.
Importance 3 – Financial Value
Branding in itself holds true financial value. Regardless of the value of inventory or other capital, a brand is a standalone asset. And the more trusted and recognisable that brand becomes, the bigger its value will grow.
Even when launching related products or moving outside the original sector, a valuable brand will play a key role. A brand with a high financial value will help open doors.
Importance 4 – Referral Business
Referral business not only comes from providing quality services and products but also from building relationships with your customers. Connecting with clients on a personal level by telling them your story creates familiarity. It can resonate with others and show them that you understand their needs. This creates a far more solid bond and means they will be more likely to share their experience with other potential customers.
Furthermore, brands that listen and truly understand their customers are able to create solutions that make a real difference. Showing that you are able to adapt and provide what they need and not what you think they need is an invaluable skill.
Importance 5 – Staff retention
A strong brand identity can directly lead to better staff retention. When we think we know a brand, we’re more likely to be drawn towards it. And the same can be said for those wanting to work for that brand.
Take Google as a case in point. Everybody assumes that it is a fantastic place to work but have we ever really researched it to confirm our suspicions? People from all over the world desperately want an employment opportunity with them. And for many, it is simply based on the brand identity.
It is impossible to overstate the importance of solid branding for companies in the financial services sector. For many years, it has been an assumption that finance equals an overly serious personality with a cold approach to personal relationships. But these stereotypes are beginning to fade and companies in the niche now enjoy a closer connection to their client base thanks to strong branding.