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Article
Publication date: 25 July 2008

Mary Lambkin and Laurent Muzellec

This paper aims to examine how international banking groups manage their branding in the context of successive mergers and acquisitions. It seeks to review of a number of case…

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Abstract

Purpose

This paper aims to examine how international banking groups manage their branding in the context of successive mergers and acquisitions. It seeks to review of a number of case histories in order to show that banking companies tend to evolve a multi‐tiered system for absorbing and rebranding acquisitions and it also seeks to present a general framework to guide future research and practice.

Design/methodology/approach

The banking industry has been undergoing major consolidation in recent years, with a number of global players emerging through successive mergers and acquisitions. These transactions vary in scale and location, from major mergers of large, equal‐sized international entities to acquisitions of smaller, local businesses in various countries all around the world. This paper brings together the literature on mergers and acquisitions, which mostly comes from economics and finance, with the marketing literature on branding and rebranding, to create a framework to help us to understand the management challenge of rebranding bank brands in this context. Citigroup and Crédit Agricole are used as a preliminary test of this framework.

Findings

This analysis suggests that the branding problem varies according to the size and international status of the acquisitive bank. Very large banks with international brands such as Citigroup tend to follow a branded house strategy where they impose their master brand on all acquisitions resulting in a further enhancement of scale and brand strength. However, this general strategy conceals a more complex, multi‐tiered approach with different types and sizes of acquisitions being rebranded in different ways. Regional players such as Crédit Agricole tend to opt for a house of brands strategy where their acquired companies retain their own name and brand franchise in local markets.

Research limitations/implications

The framework presented here is entirely new and requires further testing. The evidence supplied here is interesting but preliminary and requires further validation.

Practical implications

Most banking companies nowadays become involved in mergers and acquisitions at some stage, and face the task of realigning their brands in the aftermath of these transactions. This paper provides a systematic framework backed up by empirical evidence to help them to make these decisions.

Originality/value

The paper addresses a critically important strategic issue that has not been addressed in any detail in the marketing literature. The paper provides preliminary research evidence and a framework to suggest hypotheses for further research.

Details

International Journal of Bank Marketing, vol. 26 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 July 1993

Andrew Sturdy and Glenn Morgan

Reviews the current transition in French retail banking fromoligopolistic power and strict state control towards a greater marketingorientation and competitive challenges. Drawing…

Abstract

Reviews the current transition in French retail banking from oligopolistic power and strict state control towards a greater marketing orientation and competitive challenges. Drawing on research including interviews with French marketing practitioners, identifies a number of trends in marketing practice – the expansion and targeting of products and distribution channels, packaging products and “personalizing” services. Illustrates the centrality of market segmentation to these practices by the use of a case study company, Credit Agricole. Focusing on the organization′s use of a psychographic study on European lifestyles, shows segmentation to be a core strategic tool in a changing society and competitive marketplace. Concludes by noting the parallels between developments in France and elsewhere, but also highlighting the application of marketing in particular economic and cultural contexts. In addition, identifies some possible dangers with targeting and “courting” particular consumer segments with a “personalized” service.

Details

International Journal of Bank Marketing, vol. 11 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Book part
Publication date: 19 November 2012

Daniel Bachet

Purpose – The purpose of this chapter is to show that cooperative banks’ values and finalities are not identical to capitalist banks, which are solely geared toward the…

Abstract

Purpose – The purpose of this chapter is to show that cooperative banks’ values and finalities are not identical to capitalist banks, which are solely geared toward the maximization of short-term financial returns.

The idea that has been widely trumpeted since the beginning of the cooperative movement is profoundly “democratic” due to the fact that it is based on the idea of one person=one vote and because the concept of “collective property” remains topical to this day.

This raises questions as to the best way of conceptualizing the fact that some executives of banking institutions operating in the social economy have in recent years prioritized the development of growth strategies whose only goal is to constantly increase their power and adopt the same ultimate goals as capitalist banks do.

Results – This chapter highlights the reasons for cooperative banks’ deviations and suggests a return to the original mindset of the social and solidarity ideal. It specifies what the terms “market” and “competition” refer to and also suggests a reshaping of two categories derived from neoclassical thinking: “free and self-determined individuals” and “enterprise.” Lastly, it identifies the institutional conditions underlying the generalization of cooperative finance so this is no longer viewed as something marginal or isolated.

Details

Recent Developments in Alternative Finance: Empirical Assessments and Economic Implications
Type: Book
ISBN: 978-1-78190-399-5

Keywords

Book part
Publication date: 16 December 2016

Pascale de Rozario

This chapter addresses the issue of value creation in the retail banking sector, focusing on France. The author shows that since the 2007 financial crisis, banking organizations…

Abstract

Purpose

This chapter addresses the issue of value creation in the retail banking sector, focusing on France. The author shows that since the 2007 financial crisis, banking organizations have used a disruptive innovative approach to regain the trust of retail banking customers. This innovative hybrid design is not only driven by efficiency and fully dematerialized solutions, but also considers human, social, and territorial development aspects.

Methodology/approach

This chapter is based on an EU statistical analysis (2009–2013) of two strategies used by French, Italian, and German national banks to manage the 2007 financial crisis: closing retail bank branches and lay-offs. Interestingly, in France, bank units and employee numbers fell the least. A complementary qualitative analysis of the principal banking innovations promoted by R&D directors helps to explain the main features of the French strategy to cope with the mistrust of clients and employees.

Findings

Though low-cost models are promoted as major innovations today (“banking is necessary, bankers are not”), and result in massive offshoring and restructuring levels to face new global competitors such as Google, Amazon, and PCCW-HKT, the French retail banking sector, previously state regulated but progressively deregulated, has adopted an original strategy to regain trust and loyalty. Rather than adopting these low-cost models strictly, with full dematerialization, it focuses on balanced innovation – such as the “neighbourhood bank format,” which improves knowledge of the expectations and needs of local clients and environments. These solutions are not only global or local, but a mix of both dimensions.

Research implications

Global industries like finance are embedded in both territorial and historical relationships and governance. This means that they can only be observed from this dual perspective, which is a dilemma that characterizes today’s economy. Innovation decisions and design particularly illustrate the banking sector’s embeddedness, with the dichotomy between fully digitalized options and fully territorialized services. Therefore, innovation is neither a “Champion” or leadership question, nor a mere ICT option. It is a hybrid combination to restore trust and relations.

Practical/social implications

The implications of such a balanced approach to innovation are highly important in terms of offshoring, lay-offs, and outsourcing practices, which are adopted as essential, and taken for granted by owners and CEOs in global value chains such as finance.The given data and analysis give concrete means to integrate local cultural and institutional habits, so that innovation make sense to stakeholders.

Originality/value

This chapter suggests a critical approach to innovation strategies and trends in the finance sector.

Details

Finance and Economy for Society: Integrating Sustainability
Type: Book
ISBN: 978-1-78635-509-6

Keywords

Article
Publication date: 1 April 1957

Vincent Planque

En remarque liminaire, je dois faire observer que mon propos — selon ce qui m'a été demandé — est de présenter une vue schématique du financement dans le tourisme français.

Abstract

En remarque liminaire, je dois faire observer que mon propos — selon ce qui m'a été demandé — est de présenter une vue schématique du financement dans le tourisme français.

Details

The Tourist Review, vol. 12 no. 4
Type: Research Article
ISSN: 0251-3102

Book part
Publication date: 19 November 2012

Michel Roux

Purpose – This chapter aims to show the similarities and differences that can be found in the destiny of cooperative banks and mutual insurance companies; these two industries…

Abstract

Purpose – This chapter aims to show the similarities and differences that can be found in the destiny of cooperative banks and mutual insurance companies; these two industries, for reasons both similar and specific, are now “at a crossroads.” To reinforce this, we begin by tracing the history of cooperative banks and mutual insurance companies to better inform the future. Cooperative banks and mutual insurance gradually secularized and out of corporatism have patiently built-in different ways depending on the network as opposed to companies.

Results – This chapter will pursue these observations by identifying the impacts of recent crises in shaping business models by questioning a central issue which is that the trap values meet performance requirements in a fierce competition. Then, this chapter will end with the discussion on the main challenges faced by the mutual sphere; «She» should be replaced by «it». Could it exert a role in the crisis?

Details

Recent Developments in Alternative Finance: Empirical Assessments and Economic Implications
Type: Book
ISBN: 978-1-78190-399-5

Keywords

Article
Publication date: 2 January 2018

Kenneth Murray

This paper aims to advocate the development and re-emphasis of “epistemic virtue” in relevant professional ethical codes so that attention is re-focussed on the responsibility of…

Abstract

Purpose

This paper aims to advocate the development and re-emphasis of “epistemic virtue” in relevant professional ethical codes so that attention is re-focussed on the responsibility of relevant professionals to close windows of opportunity for financial wrongdoing and money laundering that are left open through the widespread practice of “wilful blindness”.

Design/methodology/approach

This study is an exploration of the duty to know or find out in the accountancy profession via discussion and illustration of how failures in this field contributed to the financial crash; a relation of these failures to “seek the truth” to the concept of “epistemic virtue”; and a discussion of how a lack of epistemic virtue is a necessary condition for the successful practice of money laundering.

Findings

This paper considers the case for establishing a new framework for recalibrating the professional ethic model so that the primacy of outward looking attitudes to knowledge is re-established at the heart of professional ethics.

Research limitations/implications

The paper advocates the adoption of specific training on outward looking epistemic values in all financially related professional bodies.

Practical implications

Review of ethical standards in the professions is required to ensure epistemic virtues are given due weight and prominence within them.

Social implications

The accumulation of criminal capital under legitimate guises by serious organised crime requires poses an ongoing threat to the integrity of economic markets. A key step to improving defences against this threat is the elevation of epistemic virtue in the professions.

Originality/value

To raise awareness and prominence of epistemic virtue as a necessary component of professional integrity.

Details

Journal of Financial Crime, vol. 25 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 8 May 2017

Megha Mahendru and Aparna Bhatia

This paper aims to analyze the cost, revenue and profit efficiency performance of Indian scheduled commercial banks. The study also determines differences if any related to…

Abstract

Purpose

This paper aims to analyze the cost, revenue and profit efficiency performance of Indian scheduled commercial banks. The study also determines differences if any related to efficiency among banks on the basis of ownership pattern.

Design/methodology/approach

Cost, revenue and profit efficiency of banks is calculated by using the non-parametric approach, namely, data envelopment analysis. Further, the differences in the efficiency scores are examined by applying analysis of variance.

Findings

Indian scheduled commercial banks have not been able to maintain their input-output synchronization in terms of cost, revenue and profits in the year 2012-2013. Foreign sector banks have higher cost and profit efficiency as compared to their counterparts in private and public sector, whereas public sector banks are found to have been more revenue efficient.

Originality/value

With specific reference to India, less empirical work has been carried out with respect to cost, revenue and profit efficiency. None of the studies have evaluated the sector-wise performance of banks in terms of all three efficiency parameters.

Details

International Journal of Law and Management, vol. 59 no. 3
Type: Research Article
ISSN: 1754-243X

Keywords

Content available
Book part
Publication date: 17 February 2020

Simon Grima and Eleftherios I. Thalassinos

Abstract

Details

Financial Derivatives: A Blessing or a Curse?
Type: Book
ISBN: 978-1-78973-245-0

Article
Publication date: 12 September 2016

Eva Zambelis and Mark Thomas

The aim of this paper is to see how NOT to manage an acquisition through the case study of one of the worst M&As in recent years: Emporiki Bank’s by Crédit Agricole. Although the…

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Abstract

Purpose

The aim of this paper is to see how NOT to manage an acquisition through the case study of one of the worst M&As in recent years: Emporiki Bank’s by Crédit Agricole. Although the role of the banks is to manage risk, the acquisition of Emporiki by Crédit Agricole shows how easy it is, when ill prepared, to make one mistake after another and get trapped without a way out. It can even cause to take such desperate decisions as in this case sell an entire bank for one single euro.

Design/methodology/approach

General review.

Findings

The paper shows that being a very successful bank does not guarantee in any way good M&As, especially in an unknown market. Preparation, understanding of the whole situation and reactivity is key for a successful M&A. Without it, the consequences can be disastrous.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 32 no. 9
Type: Research Article
ISSN: 0258-0543

Keywords

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