The global recession has proven that when it comes to personal banking, consumers can and will speak with their feet if they aren’t satisfied with the service they receive. If the recently released Brand Finance Banking 500 report is any indication, HSBC is doing something right. The report named HSBC the top global banking brand.
HSBC at the top of the heap
In a battle of banking brands, HSBC earned its spot as the most valuable banking brand names among a list of the top 500. The financial institution was the only British bank among the top 10 on the list, and it jumped both Bank of America and Wells Fargo to claim the top spot in this year’s Brand Finance Banking 500 report, which was compiled by the London-based brand valuation consultancy Brand Finance, notes Bankrate.
The Brand Finance Banking 500 report rates banking brands in terms of overall brand strength, riskiness of investment and future potential in relation to the competition. It is considered a trustworthy mark of a bank’s financial strength by sources across the global banking industry.
HSBC dominates European rankings
Not only was HSBC the only British bank among the top 10 institutions on the list, but it was also the only European bank brand in the top 10. As a whole, European bank brands “performed miserably,” notes Bankrate. Of those that appear on the list, 16 of 20 lost significant ground in terms of brand value and customer assessment when compared with rankings from the previous year’s Brand Finance report.
China and Brazil on the rise
While HSBC captured top banking brand glory, banks from numerous other nations performed quite well as a group. Four banks from China – China Construction Bank, Bank of China, ICBC and Agricultural Bank of China – all ranked among the top 20 on the Brand Finance Banking 500 report. Moreover, banks in Brazil, Russia and India were also highly ranked. The collected banking brand performance of institutions from those four countries outnumbered banks from throughout the rest of Europe among the top 20.
US continues to perform well
While U.S. banks like Bank of America (number three) and Wells Fargo (two) continued to perform well in the latest Brand Finance poll, the giants were far from alone. Chase, Citi Group and American Express checked in at the five though seven slots, respectively.
‘A very turbulent period’
David Haigh, the CEO of Brand Finance, admitted that last year was “a very turbulent period” for bank brands. As 2012 progresses and various elections occur, the fate of the global banking industry could be determined.
“2012 is set to be a landmark year politically with the U.S. election in November and polls in Germany and France, too,” said Haigh. “In this context, the eyes of the world will be examining the brand value of financial institutions as an indicator of broader financial health of their respective nations.”