MONDAY VIEW: The banks must deal with their image problem

By DAVID BUIK
Updated: 17:01 EST, 29 May 2011

Since the global meltdown of the financial sector there has been no greater supporter of the banking fraternity than me, despite the hatred and abuse frequently hurled in my direction.

Frankly, it’s water off a duck’s back. We need to move on. There was always going to be tacit acceptance that stronger regulation with much greater capital requirements would be implemented. They were prerequisites.

The recommendations from the Independent Commission on Banking, led by Sir John Vickers, look to be an excellent platform from which banks can rebuild their reputations, provided they are not disadvantaged against competition elsewhere in the world.

David Buik: Improving the image of banks, and the service they provide, must be tomorrow's goal

Those who believe that recovery from an economic downturn does not emanate from banks are deluding themselves.

However, there is no doubt in my mind that the high street banks have missed a trick or two with disappointing public relations.

With the exception of RBS and Lloyds Banking Group, gargantuan profits were posted in 2008/9, and it would have been great to see the banks each volunteer £100million to be lent to innovative propositions.

The cost would have been minimal and the goodwill generated would have been immeasurable. Even the two government-supported banks should also provide innovation facilities, regardless of their current financial status.

The Project Merlin agreement with the government to increase lending by 15 per cent this year is, in my opinion, nebulous.

Banks need to make themselves more accessible, with greater importance attached to customer relations, rather than just internet banking.

Banking is a serious business. Ralph Silva, the muchrespected banking analyst, says: ‘We live in an age where the government no longer enjoys the luxury of supporting our retirement; therefore the managing of our money has never been more important.

‘Maybe it’s time our banks take on the responsibility to teach our children that money is serious, and that starts with the advertisements they choose to produce. These campaigns need to be addressed. If not, there could be discussions on how to legislate for responsible advertisements, or maybe ban them altogether to avoid unnecessary hardship.’

Lloyds Banking Group uses an animated doll that guides you through the playpen of life.

Barclays want us to believe that money decisions are made by coin tosses or better yet, balancing your money in the same way as spinning plates on a pole.

Halifax wants us to sing along with the masses in choreographed beach parties with singing crabs, or at least mumble ‘ISA, ISA baby’ every minute of the day.

Nationwide’s campaign would want us to all be ‘Little Britain stars’, which could be interpreted as mischievous. These are entertaining and imaginative, but you have to question if they are appropriate.

If money is about managing one’s life, then maybe the high street banks should spend a bit more time thinking about how they talk to us.

I have nothing against London’s counterparts to the Madison Avenue advertising wizards depicted in the Channel Four series Mad Men. They are brilliant. They just need some fresh guidance.

One of the most successful campaigns in the history of banking was an advert for Dean Witter, now part of Morgan Stanley.

Dean Witter produced an advertisement showing a distinguished gentlemen who simply looked into the camera and said: ‘We make money the old fashioned way, we earn it.’

More locally, HSBC’ s recent ‘integrity’ campaign illustrates it is possible to add levity and interest to a message of responsibility.

Banks help people live their lives, and that is why they are of fundamental importance. Money is emotional as it has the ability to change our lives in the most radical of ways.

So improving the image of banks, and the service they provide, must be tomorrow’s goal.

David Buik is a commentator at BGC Partners