Axis Bank - transforming UTI Bank into a global modern bank
The erstwhile UTI Bank has changed its name to Axis Bank effective July 30, 2007. This is the first time that a bank has gone in for a brand-change voluntarily; earlier names of banks have been changed either due to a merger or an acquisition.
UTI brand was given in 1994 by its promoters and UTI Bank could use the brand only till January 2008 as per Govt directives. Many unrelated shareholder entities like UTI Technological Services, UTI Investor Services and UTI Securities were carrying the UTI brand.
Axis refers to a line of reference, stability and maturity. The new logo of the bank has the same colour as the previous UTI logo but now uses the alphabet ‘A’ from the word Axis. The bank is also publicising the change through campaign titled “Twins both equal”.
Axis Bank has business of Rs.102,000 crore with a market capitalisation of Rs.21,817 crore making it the fifth largest in India. It has 60 lakh customers and communicating to them the name change would be the prime exercise for the bank.
Immediately, the bank will replace signages in 8 metro cities while in other 250 cities by September. It is also informing customers about the brand change though Internet and mobile banking, ATM, call centres, newspapers and radio. Even elements like cheque books, welcome kits, payorders have been resigned to reflect the new look.
Now with a name having universal appeal, the bank would now work towards becoming a multinational bank and diversifying into other financial services like AMC, insurance and restructure operations to reflect a modern approach to banking.
However, the bank also has a task in its hand to communicate to the customers and public about its nature as having a UTI name prefixed would have implied that it has been a quasi-government bank. It would also have to educate about its shareholding to further expand itself into the retail business.
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The interesting point is the tagline used in the banners near the bank branches announcing the change. Roughly, it reads, “Only the name has changed. Everything else remains the same”. That is somewhat weird since major brand related changes are made to signify difference, or to break from the past image. Whay would you spend your millions to change the name, put new banners,get a new logo done, buy new stationary etc and then say nothing has changed?!
Axis Bank is born out of the pressure on UTI Bank to shed its brandname after the split of the erstwhile UTI. The reason in the change in the bank’s name follows a year-long tiff between UTI Mutual Fund and the bank over the use of the brand name, UTI. After 2008 UTI bank was not prepared to accept terms and conditions (including royalty) from UTI AMC to use the name. Also the decision to re-brand the Bank emanated from the need to move out of a scenario of brand confusion that is created by several shareholder-unrelated entities using the UTI brand.
UTI Bank (now Axis) has always given its customers excellent service, thus becoming one of the most popular brand in the banking industry. I wish Axis Bank all the best and hope it continues to scale greater heights.