Santander: highlighting the benefits of its UK rebrand

Jun 01, 2009 (Datamonitor via COMTEX) -- BDBYF | Quote | Chart | News | PowerRating -- Santander is to bring its UK operations under its own name, and as a result the Abbey, Alliance & Leicester and Bradford & Bingley brands will disappear from the high street. Such a move in less turbulent times may well have been met by objections, but provided the change is handled tactfully, Santander should avoid alienating its customers.

In a move to streamline its UK operations, Santander has announced plans to rebrand its three UK banks (Abbey, Alliance & Leicester and Bradford & Bingley) under the parent company's name. In quieter times, such a move may have proved contentious, with customers mourning the loss of well-loved and familiar brand names. Historically, Abbey and Bradford & Bingley have enjoyed very high brand warmth, fostered in part through long-running and memorable advertising campaigns.

However, even before the current economic crisis, Abbey was suffering due to a reputation for poor customer service, and its image was further damaged by what was widely thought to be an ill-conceived and short-lived rebranding in 2003. Bradford & Bingley also saw its status suffer following the collapse of its lending arm in 2008. Consequently, there may be reduced consumer resistance to the rebranding, and in the current climate, customers may appreciate the reassurance provided by the backing of a major global bank which seems to have weathered the economic storm.

One need only look at the success of HSBC over the last ten years to see the positive effects that rebranding can have. In 1999, Midland Bank was rebranded under the HSBC banner, and has since become one of the most familiar and respected brands in the UK. In the 2008-2009 Superbrands survey, HSBC ranks higher than Lloyds TSB and is on a par with Barclays in terms of public perception, proof that a well-managed rebranding strategy can overcome any loss of familiarity.

Santander has already taken preparatory measures. Abbey's logo was recreated in the Santander house style in 2005, and more recently, advertising has stressed the bank's status as 'part of the Santander group'. A website dedicated to the rebrand has already been created to keep customers fully informed as to its rationale and the benefits it will bring. Even the likely closure of some branches should not prove too problematic if Santander can emphasize that the final merged network will be bigger than any of existing individual networks, thus benefiting customers.

Provided Santander can continue in this vein, it should avoid alienating its customers, and there is every possibility that the transformation will not merely be tolerated, but actively welcomed.

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