Building a stronger financial sector: The role of branding in Bangladesh's banking industry

In a rapidly evolving financial landscape, branding has become the cornerstone of success for banks around the world. No longer limited to logos or advertisements, branding now involves creating trust, building emotional connections and differentiating in a competitive market. For Bangladesh, with over 50 scheduled banks serving an increasingly diverse population, effective branding is not just a business strategy—it's a necessity.

This detailed article explores how branding can transform the Bangladeshi banking sector. It highlights key strategies, shares relevant data and offers actionable insights to help banks strengthen their market presence while meeting customer expectations.

Why branding matters for banks

Banking is inherently a business of trust. Customers place their savings, investments and future financial security in the hands of banks. This trust, however, must be earned and nurtured through strong branding strategies.

In Bangladesh, trust is especially critical. Scandals, mismanagement and irregularities in recent years have caused many customers to question the integrity of financial institutions. According to a survey by Bangladesh Bank (2024), 65% of customers prioritize trust and transparency over all other factors when choosing a bank.

Globally, data supports the impact of branding on financial performance. A McKinsey study found that banks with strong brands saw 20% higher customer retention rates compared to competitors. Similarly in Bangladesh, customer-centric banks reported a 15% increase in deposit growth over the past three years.

Core elements of effective bank branding

Building trust and reliability:

In Bangladesh, where financial literacy levels remain low, consistent service and clear communication are essential for building trust. Research by Leonard Berry (2000) shows that customers remain loyal to banks that deliver predictable and reliable experiences.

For example, BRAC Bank's positioning as a "Bank for Small and Medium Enterprises" has established it as a trustworthy partner for entrepreneurs, a key segment of the Bangladeshi economy.

Embracing digital accessibility

As the financial sector shifts towards digitalization, branding must reflect this transformation. In our country, mobile banking platforms like bKash and Nagad have set benchmarks for digital accessibility. Offering intuitive apps, personalized notifications and seamless transaction experiences strengthens a bank's reputation as modern and customer-friendly.

A study by Dibb and Simkin (1993) noted that brands that incorporate technology into their identity are more appealing to younger audiences. With 45% of Bangladesh's population under the age of 25, digital branding is a significant opportunity.

Aligning with local values

Bangladesh is a culturally rich and diverse country. Banks that align their branding with local traditions and values resonate more effectively with customers. 

For instance, Islami Bank Bangladesh Limited's adherence to Islamic banking principles has made it a popular choice among the country's Muslim majority.

Visual identity and consistency

An easily recognisable logo, consistent colours and a unified design language create a memorable brand. According to David Aaker (1996), a strong visual identity can increase brand recall by 35%. Banks like Dutch-Bangla Bank, with its distinctive blue and green palette, effectively communicate trust and growth through its visual elements.

For example, Jamuna Bank has recently revamped its logo to reflect modernity and forward-thinking values. The new logo features a clean, contemporary design with bold, distinct colours that evoke reliability and trustworthiness. This rebranding effort aims to connect more deeply with younger, tech-savvy customers while reinforcing Jamuna Bank's reputation as a progressive institution. The visual identity is now aligned with its core values and mission, ensuring consistency across all customer touchpoints, from online platforms to physical branches. This move is a great example of how a refreshed logo can breathe new life into a bank's brand, creating greater visibility and enhancing customer loyalty.

Best practices for branding in Bangladesh's financial sector

Understanding customer needs

Bangladesh has a diverse population and people in urban and rural areas handle money differently. Urban customers prioritize digital convenience, while rural customers value accessibility and personal relationships with bank staff. A study by the Bangladesh Institute of Bank Management (BIBM) found that rural customers are 20% more likely to choose banks that offer personalized services.

Investing in employee advocacy

Employees are the most visible representatives of a bank's brand. Training staff to reflect the bank's values ensures a consistent customer experience. Dobree and Page (1990) reported that employee advocacy boosts customer trust by 25%. In Bangladesh, initiatives like City Bank's employee training programs have significantly improved customer satisfaction.

Harnessing digital platforms

Digital platforms offer a cost-effective way to build and maintain a brand. Social media, for example, enables banks to engage with customers, promote financial literacy and share success stories. A 2023 Meta survey found that 65% of Bangladeshi banking customers preferred banks that actively engaged on platforms like Facebook and Instagram.

Community engagement

Connecting with communities through CSR campaigns fosters emotional bonds with customers.

Transparency and communication

Clear, honest communication builds credibility. In a market where financial scams are not uncommon, customers value transparency in fees, policies and services. Research by Boyd et al. (1994) emphasizes that straightforward communication enhances long-term loyalty.

Global inspirations for local banks

Global examples provide valuable insights into successful branding strategies.

JP Morgan Chase (USA) integrates advanced technology with a strong focus on trust, resulting in industry-leading customer satisfaction.

DBS Bank (Singapore) has redefined digital banking by creating user-friendly platforms, earning recognition as the "World's Best Digital Bank."

Santander (Spain) has leveraged sponsorships in sports to appeal to younger customers, demonstrating the power of targeted branding.

Bangladeshi banks can adapt these strategies by focusing on customer-centric innovation while staying true to local cultural and economic contexts.

Challenges

Trust Deficit: Public trust in banks has been hurt because of financial scandals in recent years. For example, in Bangladesh, there have been cases where large amounts of money went missing from bank accounts, like the 2016 cyber heist of Bangladesh Bank, where $81 million was stolen. Such incidents make people worried about whether their money is safe. Additionally, reports of bad loans and corruption in some banks have made customers question the honesty and reliability of financial institutions. When trust is damaged, people become hesitant to save or invest their money with banks, which affects the entire financial system.

Limited Financial Literacy: Many people in Bangladesh, especially in rural areas, struggle to understand modern banking services like online banking, mobile apps, or ATMs. For instance, some customers still prefer cash transactions or informal money lenders because they find digital platforms confusing. This creates challenges for banks, as customers may avoid using valuable services. Educating people through simple campaigns and workshops can help bridge this gap, enabling them to benefit from modern banking tools.

Balancing Innovation with Tradition: Digital banking services like mobile apps and online transactions are essential to attract young, tech-savvy customers. At the same time, many people especially in rural areas or older generations still rely on personal interaction with bank staff. Rural customers often prefer visiting branches to discuss their needs face-to-face. Banks need to balance both approaches by using advanced technology while keeping personal services available. This helps ensure that everyone, regardless of their preferences feels supported and included.

Opportunities

Youth Engagement: Bangladesh has a large population of young, tech-savvy individuals who are quick to adapt to digital tools. Banks can tap into this opportunity by offering interactive and user-friendly digital services. For instance, gamified apps that reward users for saving or learning about financial literacy can make banking more engaging and fun. Digital campaigns on platforms like Facebook and Instagram can also help banks connect with younger audiences. By using creative content such as short videos, interactive posts and influencer collaborations, banks can build a strong connection with this dynamic demographic, encouraging them to choose and trust their services.

Digital Penetration: With more people in Bangladesh gaining access to the internet, especially through affordable smartphones, the opportunities for online branding and digital banking are growing rapidly. Banks can use this trend to reach customers through user-friendly apps, social media platforms and websites.

For example, offering services like mobile banking, online account management and instant digital loans can make banking more convenient for tech-savvy customers. Additionally, targeted online advertising allows banks to reach specific customer groups effectively. This shift toward digital not only reduces operational costs but also creates a modern image for the bank, appealing to the growing number of online users in both urban and rural areas.

Government Support: Programs like "Digital Bangladesh" encourage banks to innovate by promoting technology use. This creates opportunities for banks to develop new digital services and expand their reach.

A roadmap for stronger bank branding

For Bangladesh's financial sector, branding is not just about aesthetics—it's about creating trust, fostering relationships and driving growth. By focusing on customer needs, leveraging digital tools and drawing inspiration from global leaders, banks in Bangladesh can build brands that inspire confidence and loyalty.

As the industry evolves, effective branding will be the key to standing out in a competitive market. It will not only help banks grow but also contribute to the financial empowerment of the nation.

Photo: Courtesy

Md Sarwar Matin is the head of the PR & Brand Communication Division at Jamuna Bank PLC

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.