Photo: Ray Ally
Agricultural Bank of China (ABC), one of China’s Big Four State run banks has recently unveiled a new retail fascia using the English acronym ABC. This brings it into line with other Chinese banks, most notable Industrial and Commercial Bank of China, which uses the acronym ICBC.
This new look is undoubtedly linked to its upcoming listing later this year in Shanghai and Hong Kong. As the last of the Big Four, it plans to raise 150 billion yuan and join the other acronymed Chinese banks by selling its shares. China Daily reports:
The hefty size of the much-awaited IPO of ABC is comparable to the record-setting $21.9 billion share float of Industrial and Commercial Bank of China (ICBC) in 2006 and surpasses the 120 billion yuan and 100 billion yuan raised by China Construction Bank (CCB) and Bank of China (BOC) between 2005 and 2007.
The use of acronyms in business naming is nothing new. The trend began in the 1940s, when International Business Machines introduced a new logo with the acronym IBM. Later the company pioneered one of the first corporate identity programmes lead by Elliot Noyes. He commissioned Paul Rand to redesign the now iconic IBM logo, the most famous acronym in the world.
In banking this trend was introduced by Hong Kong and Shanghai Bank back in 1990, when it changed its name to HSBC. This was part of its strategy to globalise operations and become the worlds local bank. Creating the acronym HSBC, which would work in any part of the world. It made the brand less tied to its historical routes, as the name Hong Kong and Shanghai has little relevance around the world. The new name was shorter, easier to pronounce and more immediate to communicate in any language.
Photo: Ray Ally - ABC's Old Fascia
The recent global economic crisis has forced many banks around the world into restructuring and rebranding. As they try to convince their shareholders they are still safe, reliable and trustworthy institutions. The big banks in China have fared much better through tighter controls, in part due to the fact that they are still mostly government controlled.
ABC is the weakest of China’s big four which specialises in servicing the agricultural industry and China’s 800 million farmers. Despite this it has the largest network of over 24,000 branches across China.
From a branding perspective its new fascia and acronym makes sense. However creating credibility and trust for consumers takes time and is more than just a change of logo. However, we will have to wait and see what investors will think, but the solution might not be as simple as ABC or 123.
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The elevation of customer-oriented service is most critical and so is the capability of operating large fund projects. Yeah, I agree with you Ray, we still have to see.