Research On Brand Driving Bank Management

In the modern financial system, bank is a special financial service institution that manages currency, deliver money and credit functions, and makes profit through size-based business operation. The mission of bank in the environment of open competition is to meet the needs of market concerning treasure management. Its capability to create value determines its advantage in competition for survival. With the development of civilization and economical technology, branding becomes an inevitable trend in the relationship between bank and customers. To shareholders and business managers, the difference in the brand value drives the growth of bank value. To customers, the brand value difference (BVD) affects customers' trading behavior. In addition, the integration of bank value chain develops to bank value differentiation mode from internal capability mode or external market mode. It is evident that the bank's value-creating capability is equivalent to its capability to produce BVD. In this study, we measure bank's value-creating capability through the difference in customers' recognition of brand value, adjusting for the impact of propaganda noise. In addition, we propose the hypothesis that brand value recognition is positively correlated with bank performance.This hypothesis is proved through theory and real cases. Firstly, we describe bank's value-creating capability via theoretical analysis of brand recognition. The bank performance is analyzed with respect to liquidity, safety, profitability, and development potential, including 4 parts or 13 indexes. Among them, the bank recognition could be obtained by a survey that included recognition, satisfaction, credibility, and loyalty. The bank performance could be obtained through a survey of the 13 indexes and EVA data(or Raroc data). Moreover, correlation analyses are conducted using the above data. The results of analysis support the hypothesis aforementioned. Finally, in order to further understand the method to boost the brand value of bank, a case study of 3 banks is carried out(based on the contrast against other 10 banks). A balance score approach and value chain approach are used to summarize the performance management model based on brand value, with emphasis on achieving BVD with respect to customer management, resources allocation, process integration, and organization regeneration.Bank brand include product brand and corporate brand, which is the border between finance institution and customer which compete and cooperative. Because creating market imagine and promoting client value, brand is the core of management of finance organization. However, brand building is the complex system project, forming on the interact of name and content, and need the model to impel. Hence, the article, beginning with the general brand theory and the practical of finance business, define the nature of bank brand firstly, and then construct the model of finance brand building through a pile of case study. The research open the new view on bank management, sighting into the action of finance brand and the difference between general brand and bank brand.This paper consists of eight chapters. The introduction section proposes the hypothesis of correlation between brand recognition and performance. Chapter 2 discusses the brand effect and presented the definition of brand value. Chapter 3 discusses the method of evaluating bank performance. It addresses how to measure bank value by accounting and non-accounting approaches. Chapter 4 provides a theoretical proof of the correlation hypothesis. Chapter 6 addresses the correlation hypothesis through survey studies and case studies. Chapters 7&8 deal with issues of implementing the brand driving model. It establishes the creating model and performance management model with respect to BVD. In addition, it provides solutions to handle brand crisis, conditions of model application, as well as the limitations of this study.