Ahead of Asean integration BSP urges local banks to build up brand recognition

MANILA, Philippines - The Bangko Sentral ng Pilipinas has urged local banks to build up brand recognition and come up with a unified vision for the industry to attract and keep loyal clients  in  preparation for  the impending ASEAN economic integration in 2015.

During the 40th anniversary of the Bank Marketing Association of the Philippines yesterday, BSP Governor Amando M. Tetangco Jr. said branding plays a critical role in sustaining the growth of the highly competitive banking industry and building customer loyalty.

“I believe that what makes our banking products and services marketable are a set of characteristics that distinguish us from others. This is inherently a “branding issue,” Tetangco said.

He underscored the need to create a collective brand for the banking industry with the expected entry of more foreign banks into the country and as more financial products are made available.

“From a marketing perspective, it may be beneficial if banks integrate their individual marketing plans into an industry marketing approach for branding purposes.  For instance, if Philippine tourism has ‘It’s more fun in the Philippines’ tagline, the banking sector may also consider developing a program that embodies its collective aspirations,” Tetangco said.

“I believe that this will be a vital component of our efforts to prepare for an integrated ASEAN banking community and the further entry of new foreign banks and foreign investors into our banking sector under Republic Act 10641 and Republic Act 10574 respectively,” he said.

The BSP chief said local banks must present a coherent and convincing image to the outside world about “who we are and what the Philippine banking system stands for.”

As banks face the challenge of staying relevant to their many different types of clients,the skill of effective effective risk management and a commitment to a corporate culture of governnance are the critical factors that will shape a bank’s brand.

Another difficulty financial services firms face in brand management is the similarity of product offerings from firm to firm.  Product innovations in financial services are short-lved since it is easy to copy new product offerings. This is where financial firms must find other ways such as client/advisor relationship s a means to differentiate from the competition.

 “This should be another hallmark of the Philippine banking brand:  a corporate governance culture bar none. This is a perpetual call for leadership, exercising sound judgement so that the public’s interests are not compromised... and displaying excellence through responsive service,” Tetangco said.

Tetangco said the BSP would continue to collaborate with the industry in crafting policies that raise the bar for banking excellence. “We shall pursue this through an environment that enables the development of a distinct brand for the Philippine banking industry,” he said.