In the world of banking, there appears to be room for better PR as banks struggle against the likes of insurance companies, brokers and others luring those with money into their ranks.
Case in point: Washington, D.C.-based Riggs Bank, which reported $66.3 million in income in 1996, recently opened up a new division, Riggs & Co., which will provide one-on-one services for upper-income households (more than $100,000 in annual income). It's a move, according to Riggs executives, that's meant to trade on the 160-year-old Riggs name to launch the 200-staff investment house with a personal touch.
Riggs CEO and President Timothy Lex is banking on an initial PR approach that won't depend solely on ads in newspapers, radio spots or costly marketing materials. So far, a marketing/PR group has been formed based on combining the sales forces of Riggs's trust services, investment management units and private banking. And in addition to selecting an "elegant" typeface for marketing materials which are being developed, Lex said Riggs is using a logo based on the eagle on the pediment of Riggs's original headquarters.
"Our PR will hit on providing a distinct, separate culture where the bulk of what we do will be providing one-on-one consultation to our customers and potential customers," Lex said. "In fact, we have changed our employees' titles, from traditional bank titles, so that they reflect that they're money managers. And we believe our business will grow from referrals."
Lex wants Riggs & Co. customers to feel like they're getting specialized, individual treatment. But by placing its frontline PR tactics in the hands of its employees, Riggs is taking a somewhat unique approach in this technological age. It's more common today - because of ATMs and the advent of online PC banking - to not have contact with bank personnel.
But returning to practices of yesteryear is precisely how some banks are positioning themselves as competition increases. It's not uncommon for banks like Riggs to increasingly rely on PR strategies which make customers feel like they're part of a family - not part of a mechanized, computerized society. Often in business, as is the case at Riggs, it's the PR/marketing professionals who will be charged with dealing with the public, as well as those in the business world, to sell the new venture.
"We don't push our services through press releases and marketing brochures. We build relationships with families," said John Beatty, VP/manager of one of four divisions of Private Banking at Northern Trust, Chicago.
Beatty oversees Northern Trust's private rsources division that caters to traditional, older clients with "accumulated wealth" starting at $500,000 in cash assets.
And for the 15 years it's been in existence, the division's million dollars worth of PR has centered around "building conversational competency."
It's also focused on making sure that Northern Trust is seen as part of a community - for instance, it may publicize that it has sponsored an arts gathering or a symphony performance.
"The future of PR for banks will be this kind of niche marketing," said Hal Bergen, president of Chicago-based PR house Hal Bergen & Co. "It will be hitting on that silk stocking trade." Bergen, who worked for Burson-Marsteller and Ruder-Finn before launching his own enterprise, has worked for several decades on developing PR strategies for banks.
Part of the history of why banks are fighting to keep their market share stems back to the '70s when money-market accounts became hot. And it's a battle that continues as people, not the companies which employ them, bear the burden of planning their retirements and guiding their own investments and managing their own wealth.
"The truth behind the fundamentals of the PR will be how banks position themselves as trusted financial advisors, as experts you can call on," said David Taylor, executive VP of The Bank Administration Institute, an organization devoted to providing information and insight into the banking industry.
"The key to survivial will be offering a wide array of services - and not just to wealthy people," Taylor added. (Riggs & Co., Timothy Lex, 202/835-5312; Northern Trust, John Beatty, 312/630-6650; Hal Bergen, 312/335-9994; BAI, David Taylor, 312/335-9994)