We’ve been tracking the UK’s perception of brands across various sectors. Our aim is to understand which brands are coming top in each sector across these factors and predict their future performance based on consumer behaviour.

When it comes to consumer trust, the Banking sector is the most stable among the four, at 25% since August and showing a decrease of 3% since May. We have also observed that in the banking sector trust has increased 2% from 31% to 33%.

Source: Rare: Consulting. UK adults 18+. Data collected between 7th April and 18th October 2020 (N=8,929). Those aware of the brand: three months’ moving average centered on the reference month. Average base in Retail (N=7,861), Grocery (N=6,484), Telco (N=7,434), Banking (N=6,734). Full data tables available from **www.rare.consulting**.

Since the beginning of April, there has also been an overall steady decline in the number of people who believe each of the sectors has responded well to Coronavirus but Banking is stable at 25%.

Likeability of brands is also increasing from August to September. However, this might not last. HSBC has warned that record-low interest rates around the world could challenge the banking sector long term, as it set out to re-think its strategy (Source: Yahoo Finance). We’ll see if this will have an impact on customer service and, in turn, on customers’ perception of banks.

Halifax

In May, Halifax was reportedly the most liked bank 40% and it has been the most stable dropping 3% until August and regained a 1% in September. Halifax has announced to overhaul its product transfer and further advance mortgages including increasing rates (Source: Mortgage Solution), this might have a negative impact on customers and likeability.

Barclays

We saw likeability towards the brand drop by 6% between May and September. Barclays has warned it is evaluating cost-cutting measures after raising provisions for bad loans during the coronavirus crisis to date to £4.3bn (Source: Sky), this may also have a further negative impact for the bank’s likeability in the next month.

Nationwide

In May, the proportion of people reporting they like the building society was 39%. Following some fluctuation, the brand is now the best performing of those measured and shows the same percentages of likeability as at the beginning of the recorded period. Nationwide has recently offered incentive to save money by launching the Start to Save account in February of this year, with the promise savers could be in with the chance of winning an extra savings boost (Source: Express). This will surely help to increase likeability.

Lloyds

From May to the end of July, we saw likeability towards Lloyds drop by 3%, to then recover in August, showing a 2% increase. The brand is not performing badly, having lost only 2% of likeability since May, but has recently announced that their staff will work from home until Spring (Source: BBC). We will see if this will affect customer service and consequently likeability.

Tesco Bank

By the end of August, the amount of people reporting they liked Tesco Bank has increased 1%. However, it is the worst performing among all the others shown in our graph. The Edinburgh-based bank is forecasting losses of up to £200m for the full financial year holding back the wider group results (Source: Insider). Could this have a negative impact on the likeability of the group?

Three Key Workers

Allowing staff to work from home is surely a good way to help reduce the spreading of the virus and safeguard employees' safety but at the same time banks need to ensure service to those savers who are not internet savvy.
Bad loans strategy during the first phase of the pandemic will have an exponentially negative impact in the months to come, secure customers is a key move now.
Improving customer satisfaction and service quality may be a strategy worth implementing to improve overall likeability towards a bank part of a larger group, to avoid negative effects on the whole brand.

Methodology

We calculated the Rolling averages, to identify long-term trends, by averaging a group of three months (e.g. April-May-June, which would be ‘May’). The number (%) obtained becomes representative of that period in a trend line. The period-based averages "roll," or "move," because when a new observation is gathered over time, the oldest is dropped out.

For more information on the data gathered, email hello@rare.consulting.

Brand Reputation Series - October Review - Issue 2 Banking: Does the sector have control of the pandemic?