Mercantile Bank opts for image revamp
Stephen Gunnion
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Financial Services Editor
MERCANTILE Lisbon Bank has announced a name change and a new identity as it puts its torrid recent past behind it and embarks on a new course.
The group yesterday said it had decided to drop Lisbon from its name, and would now be known simply as Mercantile Bank. It has also updated its logo.
This follows a recapitalisation of the bank by Portuguese parent company Caixa Geral de Depósitos and a recent ratings upgrade by CA-Ratings.
CEO Dave Brown said research conducted for the bank showed that Mercantile Lisbon Bank’s brand carried some negative connotations associated with the slump that the business went through over a number of years.
However, it still carried a certain amount of brand equity reflected in the loyalty of those customers who had stuck with the bank through the difficult time.
“We needed to move away from any negative image, but at the same time find the right balance.”
Brown said Mercantile had about 30000 existing accounts. Apart from building on those the bank was also looking at growing its Alliance Banking partnerships, where it teams up with third parties to provide processing and administration. One of its main alliance partners is Woolworths.
Brown said the bank was focused on growing its assets 30%-40% this year off a low base. “It’s a high percentage, but a small figure in rands,” Brown said. “We won’t be chasing assets for the sake of assets. We are looking for quality.”
The share fell 2c to 27c.
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