# The Co-operative Bank and ethical banking.
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2019-05-09
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: The Rise of Purpose Brands in Marketing
Meta Description: Discover how MullenLowe helps purpose-driven brands succeed by integrating social responsibility with business success. Learn more today!
URL: https://financedigest.com/the-co-operative-bank-and-ethical-bankinghtml

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One of the most significant marketing trends of the last few years has been the rise of so- called ‘purpose brands’, as marketers look to tap into the increasingly values-driven mindset of consumers.

At advertising agency MullenLowe we have expertise in working with clients who buy into the idea that social responsibility and business success can be mutually reinforcing, not mutually exclusive.

![Mullen Lowe](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/tom-1736839055415-compressed.jpg)

Tom Knox, Executive Partner at MullenLowe Group

This started as a result of our long-standing relationship with Unilever, whose recently [retired CEO](https://www.financedigest.com/retired-ceo-alex-a-molinaroli-reveals-his-morning-rituals-and-the-importance-of-staying-informed.html "Retired CEO Alex A. Molinaroli Reveals His Morning Rituals and the Importance of Staying Informed") Paul Polman pioneered their ‘sustainable living plan’. Under that plan, [marketing campaigns](https://www.financedigest.com/how-the-latest-ios-update-impacts-your-digital-marketing-campaign.html "How the latest iOS update impacts your digital marketing campaign") like Persil’s ‘Dirt is good’, which champions child development, replaced traditional ‘washes whiter than white’ benefits advertising.

In financial [services](https://www.financedigest.com/integrated-finance-the-advantages-of-using-financial-infrastructure-as-a-service.html "Integrated Finance: the advantages of using financial-infrastructure-as-a-service") too, there is emerging importance of the need for brands to stand for something, to have a point of view on ethics and their role in society as a whole. There are powerful underlying factors contributing to this macro trend, which need to be considered within the context of high levels of public mistrust of the [banking industry](https://www.financedigest.com/enabling-decision-making-success-in-the-banking-industry-3-considerations.html "Enabling decision-making success in the banking industry – 3 considerations").

Firstly, the [investment community](https://www.financedigest.com/community-giving-an-investment-that-really-matters.html "Community Giving: An Investment That Really Matters") has (perhaps belatedly) come to the party. Larry Fink’s now [famous letter](https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter) to BlackRock investors last summer asserted, “to prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society”. It was a landmark moment as the world’s largest investment [company](https://www.financedigest.com/wait-and-see-u-s-companies-curb-investment-as-they-await-fed-moves.html "Wait and see: U.S. companies curb investment as they await Fed moves") explicitly linked investment performance with ‘doing the right thing’.

Secondly, consumer demand: [Ethical Consumer](https://www.ethicalconsumer.org/research-hub/uk-ethical-consumer-markets-report) reported year to year growth in ethical money products to be 7.3% in 2018. There is some evidence that this more activist consumerism is linked to the prevailing loss of faith among the public in the ability of governments to address big issues like [climate change](https://www.financedigest.com/climate-change-fight-a-core-duty-for-central-banks-ecbs-villeroy.html "Climate change fight a ‘core duty’ for central banks – ECB’s Villeroy").

The third factor is [technology which has exponentially increased consumers’ ability to interrogate what finance services](https://www.financedigest.com/how-advanced-self-service-technologies-are-changing-the-face-of-finance.html "How Advanced Self-Service Technologies are Changing the Face of Finance") get up to and has subsequently raised the bar on transparency.

For banks, the most important choice consumer’s make is their [current account:](https://www.financedigest.com/euro-zone-current-account-swings-back-to-a-surplus-in-june.html "Euro zone current account swings back to a surplus in June") it’s where their salary goes, it’s visible to others through transactional use of the debit card and it often acts as a gateway to other products (mortgages, insurance, savings etc). The UK retail banking market is highly consolidated and brand switching is notoriously rare (The Big Four banks – Barlcays, RBS, HSBC, Lloyds – have [77.2% market share](https://assets.publishing.service.gov.uk/media/53c834c640f0b610aa000009/140717_-_PCA_Review_Full_Report.pdf), the total switching market is 3% and 36% of customers have remained loyal to their bank for 20 or more years).

So, it was a particularly intriguing challenge to develop a new brand positioning and campaign for the [Co-operative Bank](https://www.financedigest.com/britains-co-op-bank-confirms-tsb-approach.html "Britain’s Co-op bank confirms TSB approach"). They are a [bank with roots firmly](https://www.financedigest.com/bank-of-england-publishes-rules-for-energy-firms-liquidity-tool.html "Bank of England publishes rules for energy firms’ liquidity tool") in The Co-operative movement, with a long history of ethical banking. But it has had a more challenging recent past, relatively low awareness (including some confusion with the grocery brand) and a small [market share](https://www.financedigest.com/skull-deformity-implants-market-share-top-operating-players-recent-enhancements-and-regional-analysis-2028.html "Skull Deformity Implants Market Share, Top Operating Players, Recent Enhancements and Regional Analysis 2028").

What the Co-operative bank does have is a genuinely customer-led ethical policy based on the values of the co-operative movement: self-help, democracy, equality, equity and solidarity. It quickly became apparent to us, however, that overt [statements](https://www.financedigest.com/bank-of-england-statement-on-purchase-of-long-dated-bonds.html "Bank of England statement on purchase of long-dated bonds") about being “an ethical bank” would be riddled with pitfalls. Not only is the word ‘ethical’ open to differing interpretations it risks being attacked. It also has been devalued by other brands (including ones in the banking category) and can comes with (an unwarranted) presumption of compromise in [terms of product and service](https://www.financedigest.com/sheet-metal-fabrication-services-market-to-surge-at-a-robust-pace-in-terms-of-revenue-over-2026.html "Sheet Metal Fabrication Services Market to Surge at a Robust Pace In Terms Of Revenue Over 2026").

The [key strength of the bank](https://www.financedigest.com/russia-bans-western-investors-from-selling-banking-key-energy-stakes.html "Russia bans Western investors from selling banking, key energy stakes") is its people- both colleagues and customers. They [shared common convictions and values](https://www.financedigest.com/gonorrhea-therapeutics-market-value-share-supply-demand-share-and-value-chain-2021-2031.html "Gonorrhea Therapeutics Market Value Share, Supply Demand, share and Value Chain 2021-2031") which went right back to the legacy of the Rochdale pioneers who founded the co-operative movement; in fact, the dictionary definition of Co-operative “Involving mutual assistance in working towards a common goal” informed our new articulation of the brand positioning.

We [needed an organising idea against which would encompass all the bank’s](https://www.financedigest.com/scams-have-eroded-digital-trust-banks-need-to-do-more-to-combat-the-industrial-scale-of-scams-in-the-uk.html "Scams have eroded Digital Trust – Banks need to do more to combat the industrial scale of scams in the UK.") stakeholders: colleagues, existing customers, partners, the media and new customers. And we found it in “ [_For People with Purpose_](https://www.youtube.com/watch?v=YOB32xbNUMo)” which neatly encapsulates both the sense of people co-operating and of shared endeavour; of people actively getting on and doing stuff that makes a difference.

The approach has been very much ‘inside out’. “ [_For People with Purpose_](https://www.youtube.com/watch?v=YOB32xbNUMo)” was first launched to the senior management of the bank and then shared with all colleagues before appearing in marketing materials to existing customers. Latterly, this has culminated in the [bank’s first major investment](https://www.financedigest.com/investment-banks-trading-revenue-likely-to-shrink-barclays-boss-says.html "Investment banks’ trading revenue likely to shrink, Barclays boss says") in advertising for three years which started over the Easter weekend.

As the bank [builds on its heritage and establishes itself as a digital](https://www.financedigest.com/key-considerations-for-building-an-inclusive-digital-banking-experience-fit-for-the-future.html "Key considerations for building an inclusive Digital Banking Experience fit for the Future") ethical bank, consumer demand for just that becomes increasingly strong. Since they were established nearly 150 years ago, The Co-operative Bank have always offered those that their values a different way to bank; and for this [generation of banking customers](https://www.financedigest.com/the-next-generation-of-customer-experience-in-banking.html "The next generation of customer experience in banking") too, that appears to be right on the money.


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