Is there Brand Loyalty in Banking?

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Brand Loyalty > Forum > Is there Brand Loyalty in Banking?

Is there Brand Loyalty in Banking?
Binh, Student (University), New Zealand, Member
In my countryside (Binh Duong province, Vietnam) we have 55 banks at branch level and 150 at subbranche level that means the competition is so hard. Banks use many promotion policies for their mobilization and give loan to clients (business and personal).
In many years of observation, I noticed that clients will simply deposit their money in banks which give them the highest interest rate and donít care about a bank's ranking or brand.

In theory, I often hear experts say that clients will choose a bank with a strong brand for their transactions (like a deposit, loan, money transfer money). But this is completely opposite to the reality in my hometown. And that's why I am doing a research project to prove this fact.
Please share your experience and opinion. Thank you.
 

 
Brand Loyalty in Banking
Jaap de Jonge, Editor, Netherlands
I agree with your observations. I think many people would primarily select the bank with the highest interest rate (assuming they are looking for a savings account).
But after this initial selection there is another step... If people know, like and/or trust the brand of that bank they will go for that. However if they never heard of that first bank, or if that first bank has a poor reputation, they will proceed to the next bank. I mean the one that is providing the second best interest rate. This process could be repeated.
Does this correspond with your findings?
 

     
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