Banca Transilvania up in the Brand Finance Banking 500 2021
Banca Transilvania is climbing in the Brand Finance Banking 500 2021 up to the 302nd position from 339 last year, by a 19% increase in the brand value, up to USD 441 million, thus reinforcing the power of its brand and a ‘triple-A’ rating.
Romania is represented by two banks in this ranking, but BRD climbed down to the 470th position, with a brand value of USD 193 million, 17% down as against last year.
Amid decrease of profits and the amid efforts of the governments to manage the crisis prompted by the COVID-19 pandemic, almost two thirds of the most 500 valuable banking brands in the world have reported a decrease of their brand value, according to the Brand Finance report.
The industry has seen a dramatic downturn in the past two years when compared with previous year-on-year performance. The total brand value in the annual Brand Finance Banking 500 ranking increased by 10% in 2018 (from US$1.07 trillion to US$1.18 trillion) and again by 15% in 2019 (US$1.36 trillion) but decreased in total brand value by 2% and 5% in 2020 (US$1.33 trillion) and 2021 (US$1.27 trillion), respectively.
“The economic impacts of the COVID-19 pandemic are difficult to ignore, with global GDP forecasted to shrink by over 4%, which would signal the largest global recession since the Second World War.
Analyses conducted by Brand Finance on the world’s most valuable brands over three recessionary periods indicate that, on average, of the 100 brands that lost the most brand value during each recession, 74 of them were banks. On the other hand, of the 100 most successful brands during the recessions, 30 were banks.
In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands based on factors such as marketing investment, customer familiarity, staff satisfaction, and corporate reputation. Alongside revenue forecasts, brand strength is a crucial driver of brand value. Banks with a Brand Strength Index (BSI) score below 60 out of 100 experienced an average decline in brand value of 20%, whereas of the banks with a BSI score above 70, the average fall in brand value was only 8% – proving just how important it is for banks to have stronger brands than their competitors during an economic downturn,” according to the report.
“Banking institutions were the main culprit in the last financial crash; this time around they are a large part of helping people overcome the repercussions of COVID-19. Brand Finance research shows that banks’ responses to the global pandemic has led to a year-on-year increase in overall reputation scores among consumers, which no doubt could result in an uptick in brand values in the coming year,” said David Haigh, CEO, Brand Finance.