Financial advisors who ply their trade on behalf of deposit-taking institutions are pleased with how the public views their firms, according to the results of this year’s Report Card on Banks and Credit Unions.
The overall average rating in the “firm’s image with the public” category rose to 8.6 from 8.3 last year, accounting for the largest performance increase of any category in this survey. The improved rating can be attributed to two reasons: the two credit unions in the survey, which both saw their ratings increase by at least half a point, continue to pay significant attention to their communities; and the banks, which traditionally have been perceived unfavourably by the Canadian public, were pillars of strength during the recent global financial crisis.
“We have the best image in the industry,” says an advisor in British Columbia with Toronto-based Royal Bank of Canada. “People were skeptical after the financial crisis, but our image has recovered and there is more trust.”
RBC, Canada’s largest bank, maintained its reputation as a strong and stable organization by weathering the economic storm. In fact, Michael Walker, vice president and head of branch investments with RBC, says that clients perceived the bank as a safe haven during the financial crisis. As a result, RBC was one of the industry’s leaders in mutual fund sales during the crisis.
In the case of Toronto-based Bank of Nova Scotia, that bank also is highly regarded, not only because it weathered the storm swimmingly but because it was regarded as being proactive in its commitment to public outreach.
In fact, Mike Henry, senior vice president of customer experience and distribution strategy with Scotiabank, says the bank’s focus is on giving back to its communities: “Our partnerships with the [Canadian Football League], Nuit Blanche and Buskerfest here in Toronto [show] that we are connected to the community at the grassroots level.”
A Scotiabank advisor in Ontario is quite pleased with these efforts: “The way we represent the company is good. We’re encouraged to take time off to participate in charity work.”
Another firm that has advisors raving about its commitment to social responsibility is Vancouver-based Vancouver City Savings Credit Union. Says a Vancity advisor in B.C.: “Our image is constantly improved by our corporate social responsibility program, respectfulness to the environment and support to the community.”
As a result, Vancity’s public image rating rose significantly, to 9.2 from 8.3 last year. This rise is also due, in part, to the firm’s unadulterated focus on the member experience, says Michael Atkinson, director of investment solutions with Vancity: “We’re always focused on the members’ needs rather than our own.”
Much like Vancity, Edmonton-based Servus Credit Union Ltd. is also heavily involved in the community as it is dedicated to local causes and focuses on members’ needs. Servus also saw its public image rating improve considerably, to 8.2 from 7.7.
Moreover, Servus has built further momentum with a revamped online presence. “Our new website is fantastic,” says a Servus advisor in Alberta. “They made the changes this past December as a part of their rebranding.”
The result was a much higher rating in the “firm’s consumer website” category, which rose to 7.5 this year from 5.9 in 2010.
Servus is not alone in its rebranding efforts; Quebec’s No. 1 bank has taken similar strides. Advisors with Montreal-based National Bank of Canada, who have been frustrated with the bank’s focus on its home province in past years, are now starting to see a shift in management’s focus. Although many advisors still lament the firm’s lack of brand visibility, National Bank is steadily on its way to establishing its brand outside of Quebec.
“We are increasing our reach outside of Quebec [to] be more present in those communities,” says Marguerite Pernice, National Bank’s senior manager of wealth management. “We have opened quite a few new branches in Ontario. And since then, there has been some advertisements.”
As a result, National Bank advisors bestowed on their firm the most improved rating in the “firm’s consumer advertising” category — 6.0, up from 5.2 in 2010.
Conversely, Toronto-based Canadian Imperial Bank of Commerce is still on the road to recovery. Although the bank has increased its corporate sponsorships, advertising and charity support, its public image and consumer advertising ratings have gone in the opposite direction. The reason? Many advisors still recall the bank’s troubles relating to the U.S. subprime mortgage crisis.
Nonetheless, CIBC advisors have noted the efforts made to rehabilitate their “big, bad bank” image. “We stuck out like a sore thumb during the financial crisis,” says a CIBC advisor in Alberta, “so now CIBC is taking less risk and avoiding embarrassing sharp knives. They are working on it — and it will take time to heal.” IE