In Banking We Trust

The events of the last few years, from mortgage crises to bailouts, have created an image problem for many in the banking industry—and as a result, for the industry as a whole. According to a 2010 J.D. Power and Associates study, customer satisfaction with banking has decreased for the fourth consecutive year. A Mintel Comperemedia study found that almost three-quarters of consumers don’t trust the financial services industry.

To counteract the negative press about bank bailouts and claims of a lack of industry transparency, banks are working to rebuild consumer trust—often interacting with consumers and creating engaging content for distribution on social media and user-generated networks such as YouTube, Twitter and Facebook. In fact, an Aite survey of Generation Y consumers found that one in five uses social networks to research financial products. In a separate Aite study, 82 percent of banks using social media say that it’s one of their most effective marketing mediums.

Here’s how a few banks are recasting their brands through integrated marketing strategies:

• Mercantile Bank of Michigan uses YouTube video testimonials to support its message “Bank Like a Somebody.” To encourage customers to upload testimonials describing their banking experience, the $1.6 billion asset bank offers them a chance to win an iPad.
   
• Landmark Bank, a $1.5 billion asset institution in Columbia, Mo., takes a very different—and humorous—stance. In an effort to break down staid stereotypes, it reinforces its “We’re here for you” branding by having employees rap introductions to back office staff in YouTube videos.
   
• Chase ($2.1 trillion in assets) engaged consumers on Facebook by asking them to vote for their favorite charities. More than 2 million consumers responded, leading Chase to donate $5 million.
   
• Citigroup ($1.9 trillion in assets) uses its YouTube channel to post executive interviews. In one recent addition, CitiMortgage CEO Sanjiv Das described Citi's efforts to help homeowners remain in their homes.