Rethinking Citi Bank
Abstract:
The 2015 Masters In Branding Thesis: Repositioning Culture, focused on the branding and positioning of a real world, in-market brand. Our challenge as a team, was to seek and identify an elegant, innovative, and effective solution for the brand. We went about this by constructing a plan based around the principles of design thinking (empathy, analogous inspiration, ideation, prototyping, and implementation) . The plan served as our road map from problem to solution.By applying these principles we were able to integrate brand and market fit which addressed the strongest of client desires and needs.
Process:
Our Process began with asking questions of “why” so that we could understand the root cause of the problem the brand faced. We then asked “what if” so that we could gain inspiration and generate ideas with regards to getting the brand back into the good graces of society. In the last part of our process we asked “how might we”. This type of question served us in validating our ideas when testing the feasibility and desirability of our executions for the brand. Specifically, our group had the pleasure of conducting said process for the global banking brand of citi.
What Our Process Looks Like
Phase 1: Exploration
Interpreting The World And Dreaming Up The Future
During this phase, our objective was to identify the user problem that is not currently being solved for. We asked ourselves questions that pertained to each facet of the puzzle that could help us correctly identify our objective.
Specifically, the questions we asked were…
- What is the origin story of citi, how did they get to where they are today?
- What is the history of banking and how has it evolved over time and why?
- What is western cultures relationship with money today?
- In what ways is technology changing the landscape of finance?
- Why is citi currently in the position that it is in?
In order to answer these questions we used various tools and frameworks…
- Financial Industry Desk Research
Ernst & Young Global Banking Survey
McKinsey & Company Financial Services Study
- Culture Mapping
Analysis of trends in technology and financial magazines such as wired and Barons
- Competitive Mapping/ Audit
Visualizing the differing points of value creation of different financial brands
Juxtaposing all direct competition in order to evaluate similarities and differences in look and feel
- Brand Character Workshop
Evaluating the set of human characteristics the brand has embodied in past and is currently embodying
- Inspirational Audit
Dissecting the attributes and themes of brands that are currently resonating in culture and performing well fiscally
- Why Laddering
Using a question tree of systematically asking “why” to find the root of the problem as oppose to tactically solving for correlations
Using these methods we immersed ourselves into the history of finance and the origins of the financial system. This allowed us to understand the first principles of finance and the bedrock of what an entire industry has been built upon.
We discovered that banks were a integral part in the progression of mankind. Allowing us to build cities, transportation infrastructure and thus pushing the human race forward. At the center of this was First National Citi Bank, we discovered that they were at the epicenter of the progression of the financial industry. Developing radical innovations for people such as compound interest on savings, unsecured personal loans, customer checking accounts, certificate of deposit, the credit card, and the atm machine.
The initial exploration phase lead us to our first insight…
Although, as the brand went through periods of growth they merged with Traveller’s Insurance which led top executives to create the “supermarket” model of banking. Leading to the repeal of the Glass- Steagall Act, allowing commercial and institutional banking to merge as one.
Because of the merger and the creation of the supermarket financial model, citi became a global banking behemoth. Acquiring a plethora of financial institutions in the process.
The merger lead to a lack of a symbiosis within the company culture. Leading to extreme complexity within the organization, there was no singular cause or idea that permeated throughout the teams in the company that informed the decisions that they made on a daily basis. There was no true north.
Our second insight of the exploration phase…
As a result, citi’s history of innovation went from being externally focused, serving the the people and their best interests. To being internally focused, serving the company and their bottom line with a complete disregard for the well being of the customer in the long term.
This type of self serving innovation was deemed “reckless innovation”. Warren Buffet even addressed these innovations in his 2002 annual letter to Berkshire Hathaway Shareholders.
The End Of Exploration Phase:
With the information and contextual evidence about the citi brand, we were able to identify and frame the problem the brand currently faces.
Phase 2: Early Validation
Empirical Evidence Of A Need
In phase 2 we set out to validate our problem by testing our hypothesis thorough quantitative and qualitative forms of research. By doing this we were able to validate the problem we are solving for by proving their is empirical evidence of a need. In order to reach this objective we asked ourselves the pertinent questions.
- What do employees think of citi?
- What is the opinion of citi within the banking industry?
- What does the culture think of citi? and big banks?
- Who is the target? What are their values and beliefs?
- What is the user problem that once solved they cannot live without?
The Tools and methods we used to solve for these questions were,
- Quantitative research methods
industry insiders and citi employee’s
- Quantitative research methods
with 100+ males and females aged 20–61
- Desk Research of citi annual
citi annual reports and SEC Public Records
Through the application of these methods we began to see patterns emerging that validated the problem we identified. We began to see what the results of ‘Reckless financial innovation’ were doing to real peoples lives. Most notably with the subprime mortgage crisis.
As a result of the subprime mortgage crisis, 8.8 Million Jobs and 19.2 Trillion in household wealth were lost. And there was no access to money. Which is bad news for banks because banks are in the business of allowing access to money.
The sentiment of the people during this time was not positive in the direction of banks. The public felt betrayed especially as citi bank was at the epicenter of the collapse… rendering them “shitibank”.
Whilst all these cultural events in history are taking place,an entirely new type of customer was coming to the forefront. The millennial. They were directly influenced by the subprime mortgage crisis and the great recession. As a result, their values and beliefs are vastly different from any generation we have ever seen before.
To gain further insight into the minds and hearts of this type of new customer. Specifically in the context of banking, we asked them…
how would you describe your current banking experience?
We then asked them, what do you wish their banking experience was like?
Phase 3: Concept + Strategy
Discovering Whats Possible
By validating our hypothesis we then moved on to a concept and strategy phase that allowed us to discover what was possible. We were able to see what would resonate in the minds of customers and in the banking industry to find the sweet spot of brand — market fit. The objective of this phase was for us to create competitive advantage by intentionally differentiating the brand from the sea of competition.
In order to reach this objective we asked ourselves the following pertinent questions…
- What brand are executing on the same validated principles from research? why?
- How does that fit into the financial industry?
- Where is citi relative to the industry as whole?
- What sets citi apart from the rest of the industry?
To solve for these questions we used brand tools and methods…
- Strategy canvas
To graphically capture the strategic landscape of the financial industry
- Buyer Utility Map
To map the different experiences clients can have throughout the interaction with the product/service
- Brand Equity Pyramid
To make the distinction between the highest purpose of the brand and the functional benefits the brand offers
- Positioning Tool
To properly position the brand in the market so that it is intentionally differentiated
In order to better understand the notions of transparency, education, and approachability we researched a plethora of brands that are currently resonating with millennials and thriving economically. Albeit, three brands stood out. Why? because they are consistently leveraging technology in order to give customers control and disrupting archaic industries.
This sentiment was shared in the context of banking as we identified in the Ernst & Young Global Banking Survey. So much so that banks are currently segmenting themselves in order to provide superior experience through superior expertise.
Now, relative to competitors where does this leave citi? Nobody knows. Not even citi employees, and if citi employees don’t know why are they doing what they are doing, how can anyone else?
Discovering the insight of a lost purpose, we looked to the origins and history of the brand. We realized that we needed to use citi’s history of innovation. Although, currently citi are not the innovators in the financial industry, it is the small and nimble tech startups that are the true innovators. Even Wall Street has noticed, as Jamie Dimon eluded to in his last annual letter to share holders.
These insights, research, and data informed the strategy that we developed for citi moving forward
Phase 4: Brand Planning + Executions
Finding The Sweet Spot Of Desirability, Feasibility, & Viability
After determining our strategy and central concept idea we went on to a brand planning and executions phase. Using our strategy and self imposed creative brief as a guide map we developed ideas for bringing the strategy to life.
Through our strategy we identified five core areas to address in the execution. We believe that communicating a compelling and authentic core purpose will help address a clearly defined brand architecture which would then lead to more responsible innovation catalyzed by new leadership and incentivized by a new kind of compensation.
In order to center the brand a compelling core purpose we developed a new and authentic brand purpose to provide a true north.
We then used this purpose to serve as the epicenter of our brand architecture, permeating out into the different arms of the business and clarifying objectives.
In order to keep pace with current technology and hone in on the citi history of innovation in a rapidly changing world, we proposed that citi partner with current Financial technology startups. This would turn innovation back to being external, serving the clients.
We would then implement a new form of leadership, one that is more flat and serving of ‘teams of teams’ and giving employees more autonomy, but with greater purpose. This approach would be fueled with a new compensation strategy.
By implementing these key steps we would be able to truly deliver on creating opportunities through finance, which guides citi’s new brand mission… The Foundation For Human Growth Through Finance. We propose that this can be done through four main pillars. 1) Using the scale that citi currently has 2) Simplified structure 3) Increased Lending 4) Innovative Financial Solutions.
Using this brand plan, we were able to deliver proposed executions that were more consumer facing. This would allow the changes that citi made internally and fundamentally as a brand to permeate out into the everyday interactions that clients have with the brand.
Continued Innovation
The Road Map
To guide future decisions the citi brand must adhere to their brand mission of providing The Foundation Of Human Growth through finance. This mission should guide all that the brand says and does.
