The level of competition within the financial services industry has never been stronger, with a variety of institutions elbowing each other for a greater slice of market share.
Too often, though, it is uncertain whether these companies are properly targeting their PR focus. This week, we'll examine the PR strategies behind a trio of financial services
players: A somewhat oversized newcomer seeking admission to the industry, an old-time veteran openly muttering about its image problems, and a feisty independent seeking out new
customers with innovative generosity. Is this Good PR that you can bank on or Bad PR that crashes like a bounced check?
| The PR Focus | Good PR or Bad PR? |
|---|---|
| Wal-Mart is banking on...banking. The retailer wants to charter an industrial bank in Utah that will be run by Jane Thompson, former chair
of Sears National Bank. Due to a strong level of public comment (most of it negative), Wal-Mart agreed to an unprecedented pair of public hearings before the Federal Deposit Insurance Corp. The hearings may determine whether laws pertaining to industrial banks need rewriting (Utah is one of three states that allows such institutions to be chartered). |
GOOD PR: The retailer is playing this PR game properly. Thompson is a highly respected banking and retail veteran, which strengthens Wal-
Mart's case. Opponents claim Wal-Mart is eyeing an expansion to retail banking, which is unlikely since the proposed industrial bank will process the 140 million annual credit, debit and check transactions at its stores - it is cheaper to do that in-house versus outsourcing. The retailer's low-keyed PR approach makes its loud opponents appear shrill and strident. |
| Piedmont Aviation Credit Union, a major North Carolina financial services institution, is experiencing a bit of a crisis. The Business
Journal of the Greater Triad Area reports the 57-year-old credit union is considering a new name: Only 40% of its membership comes from the local aviation industry. Despite recent mergers with two smaller credit unions that expanded its membership base, total deposits and assets were down somewhat in 2005. |
BAD PR: There is not much transparency here, but then again the credit union has no one to blame but itself. A competitive local banking
environment coupled by a lazy marketing push did little to build the credit union's message with its market (as witnessed by the 2005 deposit and asset figures). The credit union is smart enough to realize that it needs to get its PR and marketing message into better focus - but maybe it should've pondered those facts privately! |
| Old Merchants Mortgage Bankers in Lake Success, NY, announced a new program offering free home appraisals for those seeking to refinance
their mortgages or borrow against the equity in their homes. Says president Scott Cooper in a news release: "No one should have to pay to have their home appraised when Old Merchants deducts the appraisal cost from the closing costs at close of escrow. Deducting appraisal costs is an innovative way to lessen the burden of refinancing for a growing cross section of homeowners." |
GOOD PR: At a time when the overheated housing market is finally cooling down, Old Merchants Mortgage Bankers is wisely seeking innovative ways
to bring new clients to its fold. And what better audience to tap into than those who already own homes? The bank's press release also stresses how it is independently owned and operated and how it provides personalized service - a nice reminder that it is an essential part of a neighborhood and not a branch of a distant corporate monolith. It appears Old Merchants can teach bankers new tricks! |