According to sources close to the review, China’s oldest bank invited several 4As agencies to pitch for the assignment, including Ogilvy & Mather, McCann Erickson and Euro RSCG.
While it is considered the most international of China’s four state-owned commercial banks, BoC is attempting to address MNC preference for international banks when they enter China.
While it is considered the most international of China’s four state-owned commercial banks, BoC is attempting to address MNC preference for international banks when they enter China.
“China’s banking industry is not considered world class,” explained a source involved in the review. “Everyone thinks they can use an international bank to go into China, instead of a Chinese bank. BoC wants to show that it is Chinese and understands China better.”
The review’s timing benefits BoC, with several global banks scrambling to avoid bankruptcy in the wake of the credit crunch-inspired crisis. So far China’s banks, in common with many Asian players, have been relatively insulated from the meltdown.
“While global financial institutions are not doing well, BoC can talk about stability and profits,” added the source. “It wants to build a global image.”
While the mainland Government has long sought to position BoC as its key global banking brand, other domestic competitors also pose challenges. The China Construction Bank has expanded overseas via its 2006 acquisition of Bank of America (Asia), while the Bank of Communications is minority-owned by HSBC. Private player Minsheng Bank, which is currently pitching its wealth management business, is also considered an aggressive competitor.
“If you look at brand China, BoC is a very sizeable and powerful player,” said another agency source. “But if you go a little bit closer and look at the marketing and operations, you realise it is a very conservative bank and is not really up to speed in terms of rolling out services and products. It has a long way to go to catch up with MNC banks and even some of the more aggressive Chinese banks.”
The review presents a contrast with a regional PR pitch called last week by troubled insurance giant AIG, which wants to bolster employee and consumer confidence following its US bail-out.
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