The Complete Guide to Brand Strategy for Financial Services
In the highly competitive arena of financial services, a solid brand strategy is the cornerstone of success. But branding strategy isnât about logos and color palettes; itâs about carving a unique identity that stands out in the marketplace, fosters trust with investors, and attracts customers.
This guide will help you understand key brand positioning steps, offering actionable insights and examples for crafting a vision that resonates with customers and grows the bottom line.
Whether youâre looking to overhaul your current strategy or build a new financial brand from the ground up, this is your best-practices roadmap to creating a compelling brand narrative.
In this post, weâll show you the ins and outs of branding strategy for financial brands, including:
- The Importance of Brand Strategy for Financial Services
- How to Develop a Financial Services Brand Strategy
- 3 Great Examples of Finance Branding Strategies
The Importance of Brand Strategy for Financial Services
Research shows 63% of consumers gravitate toward brands that reflect their beliefs and values. This may be even more valid in the banking and financial sector, where trust is the currency of customer relationships.
Further research indicates companies viewed as having a stronger brand identity outperform competitors by 25%.
The demand for greater corporate responsibility in the public consciousness has also prompted consumers to do more investigation into where financial institutions stand on environmental, social responsibility, and governance (ESG).
Crafting a brand strategy is not only about market differentiation, but includes weaving your firmâs values and vision into the customer experience and helping them to identify their values within your company through authentic, demonstrable business practices.
How to Develop a Financial Services Brand Strategy
Developing a brand strategy for financial services requires a structured approach that captures the essence of your brand and conveys it effectively to your target audience.
Tactics like holding a round-table workshop or offering an information gathering mechanism for key executives and stakeholders across your organization is key to sussing out the subtle âreasons whyâ that will end up informing everything you do, from your marketing approach to your brand guide to your tag lines.
Hereâs how this process can lay the foundation for a strategy that will steer any financial brand toward greater success.
1. Define your brand’s goals: The best place to begin is by crystallizing your brandâs mission and objectives. A clear mission statement provides a compass for all brand activities, ensuring every initiative contributes to a unified purpose and message, and a cohesive brand voice.
2. Identify your target audience and what they really want: You can spend multi-millions on advertising trying to convince people to buy something they donât want and it will never work. A well-defined target audience ensures personalized and impactful communication, and helps you tap into desires that already exist in the marketplace to ensure your advertising has the most impact and the highest ROI. Conduct thorough research to grasp the needs, preferences, and behaviors of your audience. This can be done through surveys, focus groups, and market analysis to gather data on potential clients.Â
3. Stake out a unique position: Differentiation is key in a crowded marketplace like financial services. Pinpointing what sets your brand apart is the fuel for more effective and engaging marketing. Even if your brand offers a similar solution to the marketplace, you might have a way of delivering the product or service, or be able to build upon a brand story that sets you apart.
4. Develop your core identity: From your unique position, you can craft a strong identity, voice, and message. A cohesive identity helps you resonate with customers and builds brand recognition over time.
5. Put your strategy into action: With your strategy defined, itâs time to bring it to life. Build a brand kit, ensure consistency across all touch points, and roll out your brand with a clear plan.
6. Measure and adjust:Â While measurement and course-correction can really only take place after you execute, the above steps will give you a head start on your approach because it will be based on an accurate target market as well as knowledge of your ideal customersâ habits and desires. Customer behavior and feedback will then fill in the rest of the story.
For more insights, consider the ideas and best practices outlined in our blog post on financial services branding, which can provide further inspiration for your own branding journey.
3 Great Examples of Finance Branding Strategies
In the dynamic world of finance, standout branding strategies can define (or redefine) a companyâs trajectory and defend its market position for many years. This is why brand strategy exercises are so worthwhile.
Here, we spotlight three successful financial brands that have made bold strategic decisions that set them apart and made them all household names.
Battle Bank
Battle Bankâs founders came to the Vested team with a vision to build a new bank. From there, Vested helped Battle Bank build a cohesive, new brand from the ground up, one that was true to the fledgling bankâs bold values, its namesake of Battle Mountain and the need for simplicity to cut through the noise.
Robinhood
Finance Studio, Vested’s partner for content and design projects, worked with Robinhood to illustrate the brand’s commitment to modern, clean, and content-centric design. They burst onto the scene with a mission to democratize finance for everyone. Their branding strategy was built around the idea of making stock trading accessible and free from traditional commission fees.
They tapped into a previously underserved market of young investors, leveraging a brand narrative of disruption and empowerment. This strategic positioning helped them grow rapidly and disrupt the financial services industry.
Masthaven
Masthaven is a UK specialist challenger bank. They came to Vested to refresh the brand to better connect with its two dual external audiences of retail savers and mortgage brokers, alongside employees and wider stakeholders. It had undertaken research among employees that denoted a clear employer brand that needed better externalizing, and we worked with the bank to also undertake in-depth analysis of mortgage brokersâ needs.
The key insight from both pieces of work was the strength of the Masthaven team, its ability to personalize support through human underwriting and the importance of its relationships. We agreed these needed to come to the fore in the rebrand.
Elevating Your Brand Strategy
The examples above help illustrate how these brands made strategic decisions to clarify their audience or identity to further differentiate and elevate the brand above the competition.
Crafting a compelling brand strategy is no small feat. But the investment of time and energy will pay massive dividends in brand loyalty, market credibility, and business longevity.
If the idea of developing a brand strategy seems daunting, remember you donât have to go at it alone. Our team of financial specialists is ready to help you build a brand strategy that resonates with your clients and distinguishes you in the marketplace.
If you are ready to revisit your brand, Vestedâs branding and marketing team is here to make it happen for you.
