Amex tops Best Global Brands 2017 Rankings among financial firms
Interbrand announced its list of the top 100 international brands, which ranks brands according to their value. The following 12 companies in the financial sector made it onto the list:
Financial firms in the Best Global Brands 2017 Rankings
27th American Express（value of brand -3% YoY）
30th JP Morgan Chase (+11% YoY)
42nd AXA (+5% YoY)
44th Goldman Sachs (+16% YoY)
46th Citigroup (+3% YoY)
47th HSBC (+1% YoY)
49th Allianz (+6% YoY)
63rd Morgan Stanley (+14% YoY)
64th VISA (+1% YoY)
68th Santander (+8% YoY)
71st Mastercard (+11% YoY)
80th PayPal (+12% YoY)
Financial sector still lags behind technology and retail sectors
For the list, a monetary value is calculated for brands that have an international presence, with the three main items of analysis being finance (including future profit forecasts), the impact that the brand has on consumer choice, and the strength of the brand (including its future credibility).
Many financial sector brands have published radical five-year plans. Comprehensive strategies to reduce costs and optimise innovation have met with success, and the total value of financial sector brands has risen 5.8% year on year to $121.1 billion.
However, this growth does not compare favourably with that of brands in the technology and retail sectors whose total value rose 8.4% and 18.7%, respectively. It is clear that there are still many areas for improvement in financial sector brand strategy.
Looking ahead, customer-led innovation is likely to be the key to growth. Numerous surveys have reported that consumers are demanding financial services that are convenient, low cost, fast, and secure.
Appetite for new technologies to be key to corporate growth?
The top-ranked financial sector brand was American Express, valued at US$17.8 billion. However, its valuation has fallen since hitting $19.5 billion in 2014. Although details of the calculation have not been published, it seems safe to assume that the company’s OPEN financial service for small business has not proved enough on its own to sustain value.
In contrast, a significant increase has been seen in the value of the brands of Goldman Sachs (US$10.8 billion), JP Morgan (US$17.7 billion), Mastercard (US$6.4 billion), and the original alternative settlement service PayPal (US$5.4 billion), who have all invested heavily in technology to reorganise and improve the customer experience.
AXA, which is among the top three financial-sector companies on the Best Global Brand list, firmly believes that the relevance and the authenticity of the customer’s experience has a significance influence on the value of the brand. In shifting from its old status as an insurance company to the role of an “everyday partner”, the company seems to have used its brand to build up a more intimate relationship with customers. This approach would probably be of benefit to all financial institutions.