Not many people like going to the bank but if Datuk Bridget Lai had her way, they would. The group CEO of Alliance Bank Malaysia Bhd and director of Alliance Financial Group firmly believes that while banks must be responsible, trustworthy and reliable, they need not be cold and unfriendly.

“Banks just aren’t loveable. You don’t wake up in the morning and say, ‘Yes, I’m going to the bank today!’ Banks have such a long way to go to improve customer service,” says Lai who has taken pains to ensure that every Alliance Bank outlet with personal service also has a kiddy corner complete with soft toys.

Alliance Bank’s history stretches back to 1958 when it was founded under the name Banque de L’indochine. The Alliance Banking Group was formed from the merger of seven financial institutions in 2001: Multi-Purpose Bank Bhd (the renamed Banque de L’indochine), International Bank Malaysia Bhd, Bolton Finance Bhd, Bumiputra Merchant Bankers Bhd, Sabah Bank Bhd, Sabah Finance Bhd and Amanah Merchant Bank Bhd. The merger came about under the banking consolidation programme in 2000.

Soon after her appointment to the board of Alliance Bank as group CEO in September 2005, Lai initiated a study into the bank’s brand strengths and weaknesses.

“In 2006, many analysts believed we had no particular niche in the market place. As one of the smaller anchor banks facing fierce competition, it was crucial for Alliance to develop a new marketing discipline underpinned by a compelling brand identity and DNA to differentiate us,” she says in an interview last month at her office in Menara Multi-Purpose in Kuala Lumpur’s Capital Square.

The bank embarked on an extensive study that lasted almost a year which involved interviewing thousands of customers and staff members. “Essentially, we took the hard road. But we needed to know what brand values our customers and staff wanted to see in us. It’s not enough to throw millions of dollars into an advertising campaign. To launch a brand without values is like creating a body without a heart.”

The study found that although Alliance Bank’s customers like the bank, those who weren’t customers had no knowledge of the bank.

“It was good news, at least we were starting with a clean slate,” says Lai.

Consumer insights gained from the study led to the bank’s corporate mantra “Banking made personal”.

“Customers want to know that they’re not just a number to the bank,” she adds.

Before a single campaign was even launched, the bank worked at internalising the brand’s promise with the goal of making all members of staff “brand champions”.

“You can’t go out and tell people what you are, you have to live it. The brand’s values must be internalised and visible at all touch points,” says Lai.

Alliance Bank then identified, via customer segmentation, the financial needs for every segment it catered for.

“Banking is a relationship that lasts a lifetime. From the first piggy bank to when you enter the workforce, get your first credit card, car, home, start a family and eventually plan for retirement, we (Alliance Bank) should  be there, with the best possible products and services for customers as they enter each new phase of their lives,” she explains.

By embracing the brand’s new promise, Alliance Bank has been able to articulate what it stands for and offers, and ultimately this has translated into a healthy bottom line and growth rates, says Lai. The bank then launched a print and poster campaign with the tagline “I want a bank... ” followed by an expression of a consumer need such as “that puts the whole world on sale for me” or “that understands my lifestyle”. It is followed by the bank’s response which starts with the words “we understand”, effectively distilling financial promises into an applicable, easy-to-understand form which was “very well received,” says Lai.

The bank’s brand value was also expressed in product launches like the You:Nique picture credit card that allowed subscribers to select the value plan that would most benefit their lifestyles and benefit in other ways.

“Those who love to collect points can opt for double bonus points, or those who prefer instant rebates can opt for up to 2% cash rebates on all retail purchases,” said Liew Swee Lin, executive vice-president and group head of consumer banking for Alliance, during an interview with The Edge last month.

The personal touch extended to allowing consumers to choose the image they wanted on the credit card – they could even choose their own photographs and designs.

Since 2005, Alliance Bank has increased its branches from 77 to 102. The number of Alliance Business Centres has grown from seven to 26, and its sales force has ballooned from 90 to 1,500.

Its transformation programme has netted it various awards. In March this year, it was recognised by the Asian Financial Services Congress (AFCS) for “Innovation Enterprise Transformation” at the Financial Insights Innovation Awards. In May, it won two regional awards at The Asian Banker IT Implementation Awards 2009 for “Best Enterprise Transformation Award 2008” and “Best Data and Analytics Project Award 2008”.

The past year has been a tough one for the financial sector — Alliance Bank saw its profits for the financial year ending March 31, 2009 shrink 38% year-on-year to RM237 million. But Lai believes that a strong brand adds “a tremendous amount of premium during a period of uncertainty”.

“A brand doesn’t change during a downturn. While the market may react in different ways, we have tried to remain consistent, and this means helping our customers when they face problems, not pulling their line of credit.”

She says if banks had been more responsible, looking out for the welfare of their customers and not abusing the power and trust they hold, the world would not be in the mess it’s in. “It’s our duty to ensure the products we sell are good and beneficial and not just for profit. It’s just good practice,” she says.

Good business practices are part of corporate social responsibility, a necessity for a bank that cares for its customers, says Lai.
“It’s not about giving money or supporting a cause. CSR should be fully integrated into the brand and the corporation.”
Alliance Bank’s brand-building journey is a journey in which the bar is constantly raised, says Lai. Every year, the bank conducts a Brand Health Index (BHI) study to gauge customer satisfaction.

“We have consistently achieved comparatively healthy BHI scores considering our low adex spending,” says Lai. (Alliance’s ad spend last year was RM1.1 million.)

During the last BHI exercise, customers said the bank was “professionally managed”, had a “long-term vision for growth” and offered “personalised services”, she adds.

Her goal is to build a bank that understands its customers so thoroughly that it is able to predict what a customer will need and even know what’s best for the customer.

“When a patient goes to a doctor, they can tell they’re feeling unwell, but it’s unlikely that the patient knows what’s wrong. Similarly, customers know they need financial services but may not fully comprehend everything the bank has to offer, and the CR (customer relations) manager will be able to advise on this,” she says. “If you can give them what they need, they will stay with you for life.”



This article appeared in Malaysia's Most Valuable Brands 2009, the special focus pullout of The Edge Malaysia, Issue 782, Nov 23-29, 2009.