High street banking on the app: branding strategies of traditionally-driven neobanks

• Published in: International journal of bank marketing Vol. 42; no. 2; pp. 301 - 330
• Main Authors: Mogaji, Emmanuel, Nguyen, Nguyen Phong
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Publishing Limited 19.03.2024; Emerald Group Publishing Limited
• Subjects: Bank technology; Banking industry; Brand equity; Brand loyalty; Consumer behavior; Customer services; Employee involvement; Financial services; Influence; Market strategy; Marketing; Millennials; Perceptions; Retail banking; Willingness to pay; United Kingdom > UK; Digital; TDNB; App-only; Branding; Neobank; High street bank
• ISSN: 0265-2323; 1758-5937
• DOI: 10.1108/IJBM-12-2022-0529

PurposeSeveral high street retail banks are extending their brands into digital banking through fully digital, app-only neobanks, which have been described as traditionally-driven neobanks (TDNBs). These TDNBs are considered a form of brand extension, representing the increased complexity of branding banks and financial institutions. This study explicitly addresses the branding strategies employed by TDNBs.Design/methodology/approachThis study has adopted a case study research design, using a multi-stage data collection strategy. Initially, interviews were conducted with bank managers, followed by interviews with customers. Later, user-generated content was extracted through verified reviews from the app store. Subsequently, these three strands of data were thematically analysed and triangulated, in order to gain a holistic understanding of the branding strategies used by TDNBs.FindingsThree key themes emerged regarding the branding strategies of the TDNBs: aligning with the parent brand, reinforcing the digital experience, and enhancing the brand image.Research limitations/implicationsThis study contributed to the growing body of research on marketing, branding, and digital transformation of bank services. As more traditional banks are exploring opportunities to pivot and explore other fintech options, this study offers significant insights that will help in managing brand experience and promotion across customer journeys in the banking sector.Practical implicationsThis study contributes to the growing body of research on marketing, branding, and digital transformation of bank services. Even as more traditional banks explore opportunities to pivot as well as other fintech options, this study offers significant insights to help manage brand experience and promotion across customer journeys in the banking sector.Originality/valueWhile previous studies on banking and financial services have concentrated on traditional retail and high street banks, there is a need for a greater understanding of the brand positioning of digital banks, especially those created by traditional banks.