On-demand webinar on building banking brands for M&A success
With banking M&A activity expected to rise 25% this year and valuations at their highest levels since 2021, it’s clear that mergers are a key catalyst for growth. In this era of considerable consolidation, it might be tempting to think that banking mergers succeed simply because institutions want them to. But research shows that it’s not operational and financial alignment that’s the biggest driver of long-term M&A success – it’s brand. Banking leaders understand the value of a brand, as 3 of 4 of them report their brand significantly impacts their business value, according to Adrenaline’s ROI of Rebranding survey. And during M&A, the right brand strategy boosts post-merger shareholder value by 23% – a significant competitive edge for banks.
It’s with that that perspective that Gina Bleedorn, President & CEO of Adrenaline, took the stage at the Financial Brand Forum to share her insights on why brand must be treated as a strategic asset during any banking merger. Drawing from real-world banking M&A examples, she illustrated how a bank’s brand shapes everything from cultural alignment to customer trust. “So many CEOs are just not thinking about this, because they want to get the deal done,” according to Gina. “You could be missing 20% of [deal] value if you get the brands wrong.” Her message is clear: institutions that prioritize brand from the beginning are better positioned to realize the full value of the merger. And her three core imperatives offer a roadmap for M&A impact.
Successful banking mergers don’t begin with a focus on the end goal – integration – but with intention. That means answering foundational questions about the brand when organizations are vetting deals, like the amount of brand equity each entity has and what name will represent the post-merger organization. Gina says, “If things are not fundamentally aligned strategically, ultimately you will have to change course.” And changing course mid-merger can be costly. But brands who put strategy first have a 42% greater chance of M&A success by implementing a strong strategy early and as a core part of the deal. “That’s a huge number if you execute correctly on the brand.”
The merger of Flagstar and New York Community Bank (NYCB) is a model of strategic focus. Despite NYCB being the acquiring bank, they embraced the Flagstar name to lead the merged organization after recognizing its broader appeal and stronger market equity. Rather than doing what most organizations do – defaulting to hierarchy – the newly combined bank created a refreshed identity under the Flagstar banner, rooted in the best of both institutions. From brand architecture and name selection to physical environments and marketing channels, every decision was guided by strategy. As Gina noted, the Flagstar rebrand became a “turning point” for the organization, positioning them for long-term profitability.
While strategy creates alignment on paper, culture is the glue that makes things stick – defining whether the two organizations can live harmoniously as one. If culture is ignored, it can quietly derail even the most well-planned mergers. “Culture is the silent currency of every merger,” says Gina. “And like a fish swimming in water, you can’t see the water, but you’re breathing it every second of every day. And without it, you can’t live anymore.” In some ways brand = culture and culture = brand. They’re so fused together that brand culture defines the experiences of stakeholders – internally and externally. In M&A, brand and culture must work together to shape a cohesive organization from the inside out.
The merger New England Federal Credit Union (NEFCU) and Vermont State Employees Credit Union (VSECU) into EastRise Credit Union provides a powerful case of cultural integration. While the credit unions served the same state, their internal cultures reflected distinctive personalities and working styles. Without a deliberate M&A strategy to unify values and behaviors, the merged organization risked internal friction that could derail the merger. Instead, EastRise made cultural unity a core focus of the rebrand, with a new brand identity built on local pride and shared purpose. Through immersive employee events, cocreated brand values, and transparent communication, the rebrand was a catalyst for cohesion.
Trust is often the deciding factor in whether a merger resonates with customers. Among customers who do change banks following a merger, 36% cite emotional reasons for the switch, and the most common among those reasons is a lack of trust in the acquiring institution. Merger or not, trust is never one-and-done – earning trust is an ongoing process. “People want to do business with brands they trust, period,” says Gina. “When you break brand trust, you’re finished, you’re gone.” Trust is so hard to earn back that’s it’s necessary to keep it from the outset. Gina says, “When you have brand trust, you can weather any storm.” And trust must be earned with intention – through transparency, empathy, and consistency.
A newly launched credit union brand showed that kind of dedication. BrightBridge Credit Union was formed by three merging institutions in Massachusetts, building a brand with trust at the center. With three executive teams, three boards and three membership bases, the process could have been fraught. But the team embraced a people-first strategy that prioritized open communication and internal buy-in. This strategy laid a foundation of trust, making people feel both involved and empowered. The launch of the brand continued the trust-building approach by sharing the new name and brand identity directly with employees and members first and focusing on continuity of service, familiar faces and shared purpose.
The three brand principles of strategy, culture, and trust make up the core pillars of successful banking M&A. With this foundation firmly in place, brands can start early and plan strategically. Merging organizations can put their focus on cultural integration, not just operational and financial alignment, and communicate uncompromisingly to earn the trust of employees, customers, and the market at large. “When it comes to rebranding in M&A, that involves a tremendous amount of transparent and successful communication,” according to Gina. Because in today’s competitive environment, branding is not an afterthought. It’s the foundation for creating stronger, more unified organizations built for the future.
To learn more about M&A strategies for success or to speak with one of Adrenaline’s experts, contact us today.
Adrenaline is an end-to-end brand experience company serving the financial industry. We move brands and businesses ahead by delivering on every aspect of their experience across digital and physical channels, from strategy through implementation. Our multi-disciplinary team works with leadership to advise on purpose, position, culture, and retail growth strategies. We create brands people love and engage audiences from employees to customers with story-led design and insights-driven marketing; and we design and build transformative brand experiences across branch networks, leading the construction and implementation of physical spaces that drive business advantage and make the brand experience real.
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