Bank One Retail Chairman Calls Brand-Building an Industry 'Soft Spot'; Outlines Basics for Creating a Financial Brand in 'Blink of an Eye'.

ORLANDO, Fla.--(BUSINESS WIRE)--Feb. 26, 1999--

Ken Stevens, Chairman and CEO of Bank One Retail, keynotes at

ABA Best Practices in Retail Financial Services Symposium 

Kenneth T. Stevens, Chairman and Chief Executive Officer of Bank One Retail Group, the retail subsidiary of BANK ONE CORPORATION (NYSE:ONE), today outlined five strategies he says are fundamental to building a strong financial brand - fast.

Stevens made his remarks, "Brand in the Blink of an Eye," as a keynote speaker today at the American Bankers Association fourth annual Best Practices in Retail Financial Services Symposium. The symposium, held February 24-26 in Orlando, has been attended primarily by senior- and executive-level financial services professionals.

In his remarks, Stevens pronounced branding a financial services industry "soft spot."

"Who among us -- a bank, a brokerage, or an insurance company -- is coveted in the same way loyal consumers ask for a Rolex instead of an expensive watch, a Volvo instead of a safe car, or even a Budweiser instead of a beer?" Stevens asked the symposium audience. "I contend no one in financial services has demonstrated a comprehensive understanding of branding combined with an all-out desire to build a brand."

Furthermore, Stevens declared an urgency for branding financial services that is in direct contrast to the traditional, longer-term notions of building a brand.

"Why the rush in the financial world?" Stevens asked. "Welcome to Internet time, where it's hard to plan for things even a mere six weeks out. We don't have the luxury of those great American brands -- like Ford, Coca-Cola, Kraft and McDonald's -- that were founded in kinder, gentler, less competitive times -- when a business generation lasted at least 30 years.

"With the pace of change today, I'll presume a generation is a few years, at most," he said.

Stevens, who has held senior management positions at brand leaders Taco Bell Corporation and PepsiCo, outlined his "five fundamentals for building a standout financial brand." He told the symposium audience that the Bank One Retail Group is using these fundamentals to build a national brand that stands for the "most personal big bank in America." The five fundamentals are:

1. Stand for something big

The first brand-building fundamental, according to Stevens, is to "stand for something big."

"The most obvious way to stand for something big is to build size and scale," Stevens told the audience, citing as an example the fact that Bank One has acquired or merged with more than 100 banks in the past 30 years.

"Along the way we've become the fifth largest bank holding company, the largest issuer of credit cards, the fourth largest retail banking system, one of the largest bank providers of mutual funds and annuities, the third largest provider of small business loans, and the third largest provider of home equity loans," he said.

But, he added, relying on "bigness" alone is shortsighted and usually short-lived.

"'Stand for something big' is also a mindset," Stevens said. "Our Bank One Retail mission is 'to be the premier national retailer of financial services to individual consumers and businesses.'"

Further explaining the Bank One mindset, he said, "The word 'premier' reminds us that we will strive to be the leader in our categories. 'National' reminds us our scope must be expansive -- or 'ubiquitous' -- as we like to say. This literally means that we're prepared to give our customers access to information wherever they want, whenever they want, and however they want. 'Retailer' reminds us that we're more than a bank. On dimensions like service, we aspire to stand shoulder-to-shoulder in customers' minds with the likes of the country's great retailers."

2. Think like a great retailer

The second basic for building a brand is to "think like a great retailer, not just a banker," Stevens said.

This involves listening intently to customers.

"In 1997, we launched an intensive customer research initiative called 'Customer Touch Points' that gave us the opportunity to ask customers -- in order of priority -- how we could strengthen our relationship with them," he said.

"Our customers tell us they want problems resolved fast, error-free transactions, knowledgeable employees, more convenience and proactive attention," Stevens said. "And, in every one of these areas, I can tell you we're doing things to let our customers know we're listening. From spending more than ever before on employee skills training to providing loans by phone in all 50 states."

3. Take roads less traveled

Brand-building fundamental No. 3 is to "take roads less traveled," according to Stevens.

"In brand-building, your job is to stand out from the pack," he said. "In the Bank One Retail Group, we take different roads by design."

He cited the Internet as a prime example. "In mid-1997, we saw the handwriting on the wall. We had a strategy of ubiquitous distribution, but the Bank One Retail Group had no presence on the Internet. We quickly launched an internal online banking pilot for 30 people. In a year, we had 100,000 customers. Today, we have more than 200,000 customers. And, we're on our way to 400,000 by the end of this year."

Bolstering the Bank One Retail Group foray onto the Internet are a number of other achievements, including a unique relationship with Excite, Inc., a leading Internet portal, to create a Bank One/Excite full-service financial center for Excite's 17 million monthly users.

In January 1999, Bank One became the first company to provide home equity loan decisions -- online -- within 50 seconds after an application is submitted, in all 50 states.

Regarding the online home equity initiative, Stevens said, "From the moment we said `go,' we designed and implemented this service in six weeks. And it's a huge hit. The day we announced our 50-state Bank One Loan by Phone(R), we received more online home equity applications than we typically receive in one month. By taking this road less traveled, the Bank One brand is now in front of millions of potential customers in a whole new way."

4. Deliver an experience

Brand-building fundamental No. 4 is to "deliver an experience," he said.

"A logo and commercials leave an impression," Stevens said. "But these are not the be-all and end-all of brand-building. They're more like icing on the cake. You can enhance your logo, develop interesting advertising and merchandise like crazy. But the brand promise is kept or broken based on every day's interaction with your customers."

Brand loyalty -- that emotional connection with customers -- is built on the front-line -- face-to-face, on the phone and over the Internet, according to Stevens. In this regard, Bank One has created a focused, values-steeped program in its banking centers called "I CARE" for establishing stronger customer service experiences.

I CARE is a Bank One Retail acronym for:

-- Inquire -- ask questions to identify needs or concerns -- Communicate -- assure customers that Bank One is eager to meet

their needs -- Affirm -- confirm Bank One's ability and desire to get the job

done -- Recommend -- suggest a range of options -- Express -- let customers know the bank is personally committed.

"I CARE is what any human being expects and should receive from a retailer," Stevens said. "It helps shape superior customer experiences. From these, emotional connections are made."

5. Value employees

The fifth brand-building fundamental is to "value your employees," according to Stevens.

"I'm not talking about the 'softer side' of valuing employees, like 'showing them you care.' I'm talking about how you as a management leader can equip and excite your front-line leaders to deliver an outstanding customer experience," he said. "The most fundamental mistake you can make in trying to build your brand is to assume that if you set the appropriate direction, people will be able to follow it.

"I never presume -- as the head of a Retail Group with 33,000 employees -- that our employees can deliver a consistent Bank One brand experience without some sense of order across our enterprise," Stevens said.

To ensure order, the Bank One Retail Group has organized its "systems" into a National Sales and Service Process. By mid-morning every Monday, approximately 2,000 of the company's banking center managers have participated in a nationwide conference to ensure they're all headed in the same direction for the week.

"Also during the week, we hold rounds and clinics, just like in medical school," he said. "On Friday, we debrief the week, and prepare for the next Monday. This system gives our entire workforce a predictable journey. It says, 'We value your time and energy, and we don't want you spinning your wheels. Here's where and how to focus.'"

Stevens concluded his remarks, saying:

"Valuing your employees like this perhaps is the most critical fundamental of the five. Without it, the others will misfire. Great business concepts are worthless if you fail to execute your idea at the front line."

BANK ONE CORPORATION (NYSE:ONE), headquartered in Chicago, is the nation's fifth largest bank holding company, with assets of more than $235 billion. BANK ONE offers a full range of financial services to commercial and business customers and consumers. It is one of the nation's largest credit card lenders, the second-largest consumer and commercial finance company, the third-largest bank lender to small business, and the third-largest bank mutual fund company. It operates more than 2,000 offices and a nationwide network of ATMs. It is a major commercial bank in the United States and in selected international markets. Information about BANK ONE can be accessed at www.bankone.com; through InvestQuest at www.investquest.com; or through Fax-on-Demand at [phone].