Good Bank, Bad Bank

It’s strange how big banks endeavour to portray a single and caring public image, yet frequently come across as multi-headed beasts.

On Tuesday this week Westpac representatives took to Sydney streets en masse to promote the bank’s new ‘Bringing Back the Bank Manager’ campaign only for the group to shoot itself in the foot later in the day by jacking up its variable mortgage rate by almost double the RBA’s 0.25% rise.

The notion of having a bank manager who customers can personally contact has been undone by what the media seized upon instantly as corporate largesse and greed.

Bank of Queensland has a similar personalised service enduring promotion, with the claim its branch managers will be there for the duration of a customer’s loan – given that many managers hold equity in their respective branches.

In Westpac’s case though, the fact customers now have apparent access to their branch managers, could result in some phones ringing off the hook nationwide after the 0.20% rate rise above the RBA’s move on Tuesday.

In the bank’s defence, and perhaps indicating that the two events of t-shirts and rate rises were in fact linked, is the fact competition for deposits remains strong, with banks eager to fund their lending activities without having to go to the more expensive wholesale markets.

As funds flow out of cash as investors become more comfortable with re-entering the equity market banks are feeling the pressure more so.

In the mean time the t-shirt clad Westpac reps were not the only people out on Sydney’s streets seeking to attract customers into higher yielding term deposits and savings products.

Bank West – albeit to a lesser extent – was keen to have its moment in the spotlight (sunlight).

This came in the form of a person dressed in a sunflower outfit standing in a pot plant outside its George Street branch.

Bank West was also promoting a savings product and in keeping with its notion of Happy Banking has yet to announce a rate rise to reflect the RBA’s move.