Financial institutions looking to break through old barriers should consider rebranding

The trend: Financial institutions (FIs) regularly rebrand themselves to start a new chapter and leave behind old barriers. Recently, several have taken on new identities to pave the way for future growth.

Here are just two of the most recent rebrands:

New York Community Bancorp (NYCB) launched its new brand, Flagstar Financial on October 25—the day it announced its Q3 earnings. 

  • NYCB was focused on rebuilding customer trust after navigating major internal shakeups, a lawsuit, multiple downgrades, and heightened media attention. 
  • The rebranding gives the bank an opportunity to turn over a new leaf.

Albuquerque-based Sandia Laboratory Federal Credit Union recently rebranded as Sunward to reflect its long-term vision, maintain relevance, and drive growth in existing and new communities, per the Albuquerque Journal.

  • This was a step away from its modest beginnings, when Sandia Laboratory employees started a credit union to meet their coworkers’ financial needs, per the credit union’s website.
  • And the credit union has expansion plans—Sunward is acquiring the New Mexico operations of Utah-based Mountain America Credit Union, adding two branches in Albuquerque, and plans further branch expansions in the South Valley and West Side, increasing its presence to 17 locations.

The new name and logo honor its ties to Sandia Laboratories, but allow the credit union room to expand beyond its local historical roots.

Best practices: CUInsight recommends FIs rebrand to stand out from the competition and appeal to digital-savvy audiences—all while preserving their unique identities. Here’s how:

  • Create a clear brand identity: FIs should choose a name that resonates emotionally while maintaining clarity about your offerings. For example, Sunward allowed Sandia Laboratory FCU to expand beyond its original geography, but the name still evokes its region.
  • Simplify and streamline: FIs should use bold, clean, and recognizable visuals to create an instantly memorable impression across all platforms. Sunward accomplishes this with bold colors and a simple sun logo, which again nods to its broader region and background.
  • Stay authentic: FIs shouldn’t shift drastically in a new direction when rebranding or chase a trend. Instead, the new brand should meaningfully reflect the FI’s background and where it wants to go in the longer term.
  • Preserve what customers love most: Current customers bank with their FI for a reason. Shifting away from those core strengths would be a mistake. FIs must understand what customers appreciate most before rebranding.

First Published on Nov 15, 2024