Consumer based brand equity in retail banking industry: a cross analysis of a domestic and global bank operating in the UK (HSBC vs Barclays)

Developing and sustaining consumer based brand equity in the financial sector specifically within the retail banking industry is relatively difficult compared to the other sectors since it is associated with the customer’s awareness of the existence of a brand reputed to offer exemplary services. This study explores brand equity from consumer perspective across the retail banking industry by comparing its dimensions across a domestic and global bank operating in the United Kingdom using a total sample of 317 current UK foreign and domestic banks users in order to test the hypothesised relationships from which the proposed model have been developed. Findings revealed that the relationship that exists between the capability of retail banking service providers to offer exemplary quality service performance associated with transactional and access convenience, bespoke functional values, easiness and reliability of technological banking portals usage as well as emotional motives inevitably brings to light the centrality of trust, loyalty and consumers’ retention leading to positive attitudes, behaviors and perceptions. Further, the statistical results showed that there is no statistical relevance in terms of the differences between HSBC and Barclays banks users, nevertheless a small difference in means was identified. Consumers’ trusted more the domestic bank and positively valued its service quality performance and usage convenience and recognized having an emotional relationship with their respective bank rather than a functional relationship whereas e-banking usage as well as functional values and financial benefits were more valued across the global bank. This research finding proposes relevant insights regarding the understanding of how brand equity is constructed from consumers’ perspective within the retail-banking sector and assist global banks improve their branding strategies, face local banks’ threats and improve their service performance. Results also fill the gap within the brand equity concept across the banking sector that has received little attention.