There are 76 active Farmers & Merchants Banks in the U.S. and more than 60 named “Community Bank.” There are seven active Community First Credit Unions and three Community First Banks.
With roughly 14,000 banks and credit unions in the U.S., original names are becoming hard to come by.
If you are looking at a new name, the key to keep in mind is “REASONABLE CONSUMER CONFUSION.” Here are some key factors…
There are 76 active Farmers & Merchants Banks in the U.S. and more than 60 named “Community Bank.” There are seven active Community First Credit Unions and three Community First Banks.
There is no such thing as a new idea. It is impossible. We simply take a lot of old ideas and put them into a sort of mental kaleidoscope. We give them a turn and they make new and curious combinations. We keep on turning and making new combinations indefinitely; but they are the same old pieces of colored glass that have been in use through all the ages.
~ Mark Twain
With roughly 14,000 banks and credit unions in the U.S., original names are becoming hard to come by.
Since I wrote “What’s in a Name?” last week, we’ve had an interesting turn of events with a credit union client who is (or rather was) 98% of the way complete with a name change launch.
When we presented name options way back when, we identified that there were no identical credit union names in the country, but that there were two similar names – one in their state, but well outside of their field of membership. The two credit union CEO’s chatted by phone and all seemed well … until the attorneys got involved recently (you can almost hear the evil music: dun, dun, dun) and spooked the similarly named credit union into NOT signing a lengthy, scary legal document releasing our client to use the new, similar-but-not-identical name.
- First in Use: Just like when we were kids, the first institution to use a name has “dibs.”
- Trademark: Did the first company using the name trademark it?
- How similar: Would we assume that consumers would reasonable confuse the two companies because of the name?
- Geography: (This is KEY!!!) Do your markets overlap? With credit unions, its a bit easier since their charters demand clearly defined borders (surrounded by motes and gun-toting-sharks and fire and a 100-foot stone wall). With banks, however, this can be somewhat fuzzier, but realistically a community bank in California is not likely to be confused with a bank in Wisconsin. Keep in mind that this goes well beyond today – what is the likelihood that either institution’s expansion would eventually overlap?
- The Mark/Logo: Confusion can stem from the brand mark. Take a look at colors, fonts and icons.
- URL: This is less of a “legal” concern than functional. You certainly don’t want someone who is actively seeking you out to spend 15 minutes on someone else’s site before they realize they took a wrong turn on the information super-highway.
Again, we’re not attorneys (we have more self-respect than that), but, in most cases a simple email or letter from the CEO or Board of the originally-named institution should be enough to keep you safe. Assuming that all of the above concerns have been met, most CEOs and Board members are reasonable enough. They may even mimic what Don Vito Corleone wisely said, “I want to congratulate you on your new business and I’m sure you’ll do very well and good luck to you. Especially since your interests don’t conflict with mine.”
OTHER BRANDING STORIES
6 Ways to Make People Love Your Brand
Smoking Mickey, USAA and Total Disillusionment!
If you find it fun and helpful, please share this blog with your colleagues. Also, check out our YouTube Channel for short video blogs about financial marketing.
In addition to being a strategic consultant, MarketMatch is also a nationally and internationally requested speaker. Contact us to bring our marketing ideas to your institution or next conference.
See our story here. (click)
Or email me directly (click)
937-371-2461
Follow me on Twitter @egagliano
