Difficult economic trading conditions and the challenger banks’ evolution of last year has sliced a share of the leading traditional banks’ brand value.
The pandemic ushered in a new era where most consumers turned to digital facilities for regular banking products as lockdown measures prohibited movement. Some of the traditional banks that did not have sufficient digital banking infrastructure faced the heat from FinTech facilities.
Data researched by Trading Platforms indicates that the top ten international banks cumulatively lost $23.01 billion in brand value in 2020. The banks recorded a total brand value of $98.12 billion, representing a drop of 18.99% compared to 2019’s $121.13 billion figure, according to a press release.
HSBC biggest loser
HSBC had the highest brand value in 2020 at $18.74 billion, a drop of 19% from 2019’s $23.6 billion. JP Morgan is second at $17.64 billion, representing a drop of 11% from 2019’s $19.82 billion. Citi ranks third at $15.66 billion, a decline of 17% from the $18.87 billion value recorded in 2019.
Morgan Stanley ranks fourth with a $9.32 billion brand value, a drop of 13% from 2019’s $10.65 billion. Goldman Sachs had $7.07 billion, a drop of 18% from 2019’s $8.63 billion. Santander follows at $7.02 billion, having dropped by 28% from $9.77 billion recorded in 2019. Elsewhere, BBVA is sixth with a value of $6.62 billion from 2019’s $8.15 billion.
ING had ranks eighth with a value of $6.54 billion, which dropped by 32% from $9.62 billion in 2019. UBS follows at $4.84 billion, a drop of 24% from $6.37 billion in 2019. Barclays is tenth at $4.62 billion, dropping 19% from 2019’s figure of $4.62 billion.
The analysis also shows that HSBC was the biggest loser in brand value by $4.42 billion, followed by Citi at $3.21 billion, while ING Bank is third with a $3.07 billion loss in value.
Santander lost its value by $2.75 billion while J.P Morgan ranks fifth at $2.17 billion. Other banks that lost significant value include BBVA ($1.89 billion), Goldman Sachs ($1.56 billion), UBS ($1.52 billion), Morgan Stanley ($1.33 billion) and Barclays ($1.05 billion).
“Overall, the crisis strengthened the competitive pressures among banking institutions through accelerating the shift towards digitalization of financial service providers. Some of the traditional banks heavily invested in digital services, enabling them to compete with fintech and other banks. At the same time, some of the traditional banks showed intentions to acquire existing challenger banks,” explained the report.
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