All but one global bank loses value in the BrandZ Top 100 most valuable global brands 2019. Regional banks fare little better but in the payments sector, Mastercard, Visa and PayPal are on the rise.
The payments sector performs strongly in the most valuable global brands 2019 ranking from BrandZ.
The BrandZ Top 100 most valuable global brands 2019 survey is one of more eagerly awaited annual surveys. And it has pedigree, dating back to its debut in 2006.
In consumer finance, let us take the positives first as it will not long detain us.
Take a bow Visa, Mastercard, PayPal and American Express.
Visa ranks fifth overall in the Top 100 most valuable global brands 2019, with a brand value up 22% year-on-year.
Visa is up two places from last year with a brand value, according to BrandZ of $177.9bn.
Rival Mastercard is also on the rise and ranks among the years fastest risers. Its brand value is up 30% y-o-y to $91.9bn and Mastercard now ranks 12th up from 15th last year.
And there is PayPal. It moves up four places from 30th to 26th with a brand value up by 25% to $44.2bn.
Since the 2018 survey, PayPal acquired iZettle, the Swedish company whose technology enables small business to accept contactless payments.
Meantime, Mastercard removed its name from its logo, leaving the intersecting red and gold discs to represent the brand.
American Express is also ahead, its brand value up by 17% to $35.1bn to rank 33rd.
Most valuable global brands 2019: global banks decline
In contrast to payments heavyweights Visa and Mastercard, the global banks in the most valuable global brands 2019 are down. That is, with the exception of JP Morgan.
Its brand value rises by 9% to $19.8bn and JP Morgan remains unchanged in the top 100 at 73rd.
Overall, the BrandZ Global Banks Top 10 is down by 8%, following a 24% rise a year ago.
Among the fallers, HSBC remains the most valuable global bank brand, down 2% to $23.6bn.
In the top 100, HSBC is down from 50th to 56th since last year.
Citi is the only other global bank to make the cut in the top 100. Its brand value falls by 11% y-o-y to $18.9bn giving a ranking of 77, down from 58th last year.
It is becoming more difficult for brands to qualify for the BrandZ Top 100 most valuable global brands 2019.In 2006, the brand value threshold for ranking in the Global Top 100 was $4.2bn. Today, the brand ranking number 100 has a value of $13.4bn.
100 most valuable global brands 2019: big names miss the cut
There was a time when Santander, ING, BBVA, UBS and Barclays ranked in the top 100. All five fail to make the cut in 2019.
Santander’s brand value is down 15% to $9.8bn while ING is down a whopping 23% to $9.6bn.
At the same time, brand values for BBVA and UBS are down by 17% and 18% respectively. Barclays is down by 10% to $5.7bn.
Goldman Sachs is another well known bank no longer featuring in the top 100. In the past year, it has promoted its online retail bank dubbed Marcus in the UK.
In another sign of its commitment to retail banking, Goldman Sachs is teaming up with Apple to offer a new credit card. Notwithstanding Goldman Sachs’ product innovation, its brand value dips by 2% y-o-y to $8.6bn, well outside the top 100.
100 most valuable global brands 2019: regional banks mixed picture
Market fluctuations affect all regional banks, even in the US and Australia which has gone three decades without a recession. The impact of the local economy is most pronounced in China because of slower expansion.
But there is some regional banking success to report in the survey. For example, the brand value for HDFC in India is up by 9% y-o-y. HDFC leads the regional banks in year-on-year value change.
To better serve the needs of India’s rising middle class, particularly young people, HDFC introduced new banking products. Examples include smaller size loans and an acceleration of its move into digital banking.
HDFC also continues to add several hundred branches annually to reach people throughout the country. The privately-owned bank operates around 5,000 branches throughout India and has consistently produced high margins.
Other regional banking gains include Chase, up 6% to $20.5bn and Toronto Dominion up 2% to $19.9bn. Chase and TD rank 66th and 72nd respectively in the top 100.
RBC remains the most valuable Canadian banking brand, unchanged at $22.8bn and 57th in the top 100. Bank of America drop six places to 83rd but its brand value is up by 3% to $18.0bn.
By contrast, Wells Fargo’s challenged year results in a 15% fall in its brand value to $44.5bn. As a result, Wells Fargo slips from 18th to 23rd in the survey.
Top 100 most valuable global brands 2019 versus 2006
A number of well known banking brands featured prominently in the original 2006 survey but have struggled in the interim.
For instance, in 2006 Citi ranked 9th overall compared to 77th in 2019. Meantime, Bank of America is down from 12th in 2006 to its 83rd place today.
Again, back in 2006, Deutsche Bank featured, ranking 40th but is not close to the top 100 today.
Away from the banking sector, Amazon, Apple, Google and Microsoft fill the top four places in 2019.
Back in 2006 in the first survey, Microsoft was first, ahead of GE, Coca-Cola, China Mobile and Marlboro cigarettes.
In 2006, Apple ranked a lowly 29th with Amazon 78th.
The BrandZ Top 100 most valuable global brands study analyses firms financials and draws on a consumer survey. It is published annually by WPP and research firm Kantar.
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