High street banking on the app: branding strategies of traditionally-driven neobanks

Abstract

Purpose: Several high street retail banks are extending their brands into digital banking through fully digital, app-only neobanks, which have been described as traditionally-driven neobanks (TDNBs). These TDNBs are considered a form of brand extension, representing the increased complexity of branding banks and financial institutions. This study explicitly addresses the branding strategies employed by TDNBs. Design/methodology/approach: This study has adopted a case study research design, using a multi-stage data collection strategy. Initially, interviews were conducted with bank managers, followed by interviews with customers. Later, user-generated content was extracted through verified reviews from the app store. Subsequently, these three strands of data were thematically analysed and triangulated, in order to gain a holistic understanding of the branding strategies used by TDNBs. Findings:Three key themes emerged regarding the branding strategies of the TDNBs: aligning with the parent brand, reinforcing the digital experience, and enhancing the brand image. Research limitations/implications: This study contributed to the growing body of research on marketing, branding, and digital transformation of bank services. As more traditional banks are exploring opportunities to pivot and explore other fintech options, this study offers significant insights that will help in managing brand experience and promotion across customer journeys in the banking sector. Practical implications: This study contributes to the growing body of research on marketing, branding, and digital transformation of bank services. Even as more traditional banks explore opportunities to pivot as well as other fintech options, this study offers significant insights to help manage brand experience and promotion across customer journeys in the banking sector. Originality/value: While previous studies on banking and financial services have concentrated on traditional retail and high street banks, there is a need for a greater understanding of the brand positioning of digital banks, especially those created by traditional banks.