Sparkbankerna: Stolt ver min bank

Solution brought to you by Steven Curtis and Joshua Kirkman

January 19, 2014

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Sustainergies ! c / o Impact Hub Stockholm Riddargatan 17D, 3tr. 114 57 Stockholm MEMO: Stolt ver min bank The Sustainergies 2013 Jury: Sparbankerna is the local savings bank that has been down the block in your local community, celebrating the values of traditional savings banks, since the early 1800s. Each local Sparbankerna contributes to the social and environmental good throughout the community and enhances the lives of investors, suppliers, customers and employees within the community. The bank realises its role for contributing to strong personal nances through stimulating savings. Moreover, the bank understands that they have a social responsibility to the community and looks to use bank prots to support local development and community initiatives. Annually, the bank contributes 259 million SEK to non-prot organisations and social programs. Despite the great work that Sparbankerna achieves in their communities, customers need to be better informed about the social and environmental impacts that the bank is facilitating. Also, community stakeholders need to take advantage of the generosity of the bank foundation in applying for local grants that benet the community. Our solution is honest, simple, engaging and empowers local communities; it is The Pride Window. The Pride Window communicates the commitment of Sparbankerna to local communities, gathers useful data to be used by the local banks in further developing funding opportunities and products, and engages the community through the Local Legend Program. As a result, Sparbankerna will aim to encourage community support and pride in the work being done, whilst increasing its customers, and continuing to contribute to local development.
PRINCIPLES OF A SAVINGS BANK

Sparbankernas community goals include helping people materialise their dreams through strong personal nances; to stimulate savings; and insure that the money of the bank is put into good use in the community, thereby supporting local development. Sparbankerna

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is a savings bank that has no anonymous shareholders and reinvests all prots into either daily operations or within the community they serve. Sparbankerna epitomizes the stakeholder model of business, whereby the banks seek to increase value on a local and multi-stakeholder level whilst continuing to grow and be of service to its local stakeholders. This type of model sees the creation of shared value being held above internal prots, emphasizing social responsibility, environmental stewardship and nancial sustainability as the three pillars of the business. With these three pillars in mind, the context of the challenge can now be discussed and our response begin to be elaborated.
CONTEXTUALISATION OF THE CHALLENGE

The challenge offered by Sparbankerna is - in our view - a communication challenge above all else. Essentially, the bank wishes to source new and inspiring ways to communicate their social commitment to their current (and potential) customers. Understanding that Sparbankerna (or the savings bank model) has been established in some communities for nearly 200 years, the primary task is ensuring that social investments are effectively communicated to the localities the bank serves is of the utmost importance. With the vast and often complicated media landscape which is presently the norm, the task of engaging with the public can unfortunately be difcult, requiring innovative solutions to be formulated. The strong position that Sparbankerna already has in many communities throughout Sweden is testament to the positive work of the banks within the communities they serve. The goals of improving the nancial independence of customers and acting as a community builder are noble and offer a positive example for other organisations to follow. In having no anonymous shareholders, there is an inherent level of transparency that fosters trust within the local communities, a characteristic that is becoming even more important in a business landscape that is increasingly riddled with secrets. Being open and transparent is good for everyone involved. The overarching goal of Sparbankerna is to bring value and returns to the whole community of stakeholders which surrounds them means that Sparbankerna ought to be held in high esteem wherever they may be located. While noble, the goals and activities of Sparbankerna in community building need to be communicated effectively. In order to be held in high esteem, the public needs to know what the Sparbankerna is doing for them. With the sheer volume of media, opinions, ideas and distractions available throughout the

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internet, the task of connecting with and communicating to the general public can be complicated.
SOCIAL MEDIA AND SPARBANKERNA

In contextualising the challenge for Sparbankerna, we highlighted the difculties that the internet poses for savings banks in seeking to engage with the public about their social commitments. The phenomenon of social media is still relatively new in relation to public relations and marketing, but the opportunities and risks that it embodies has irrevocably changed the way we communicate. From our research (which was difcult at times due to our lack of Swedish language abilities) and referring to Frs & Frosta Sparbanken in Lund as our primary example, we noticed that Sparbankerna currently has a social media engagement that is localised (e.g., local branches having their own pages on Facebook), and focused primarily on communicating the understanding that Sparbankerna has of its clients (Vr bank vet vad vi menar med nrhet. Vet din?), as well as seeking engagement with local stakeholders through the Skne Idrottsledarstipendier. Our investigations also show that advertising was done physically (primarily on local buses and bus shelters); in the local cinema (an advertisement asking people to nominate a local hero to be acknowledged by the bank); and in the local newspapers (a black and white print advertisement showing a customer of the bank, coupled with the statement that the local bank understands what they need). Whilst these more traditional forms of communication do serve Sparbankerna well presently, we believe that a more integrated approach to marketing and advertising which provides a synergy between physical/ traditional media and social media will enable Sparbankerna to better communicate its social commitments and subsequently provide valuable consumer data in the process.
R DU STOLT VER OSS? - A NEW MEDIA CAMPAIGN FOR SOCIAL AND ENVIRONMENTAL GOOD

In order to encourage pride and inspiration in Sparbankernas social commitments, we have devised an interactive marketing campaign which can be applied in all regions where Sparbankerna are present. Moreover, the model still enables community banks independence and specialisation according to their local/cultural needs. The campaign has been designed to be straightforward, engaging and positive, with a clear goal to communicate and develop the banks social commitments effectively as well as to be uid in its function. We have chosen an interactive campaign for the bank because social commitments and their communication ought to be social too! The following is a more

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detailed description of the campaign, the methods and channels used in its deployment, and a discussion of the benets and risks of such a campaign.
A CAMPAIGN TO BE PROUD OF!

The Pride campaign is a new and simple advertising campaign that communicates the social good that Sparbankerna is achieving within the community. The campaign would use real people and real community initiatives. Advertisements of local social commitments actually in progress would be placed in traditional and social media channels. In communicating projects in progress, advertisements will ask r du stolt ver oss? with the goal of linking the banks community involvement to an individual's pride in their community. Traditional advertisements will contain a QR code which would link a viewer to a brief online questionnaire, community bank website, or social media page. The example below shows an initiative undertaken by Frs & Frosta Sparbanken Lund which communicates clearly the nature of the community investment made by the bank and a question asking the viewer if it makes them proud of the bank.

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THE PRIDE WINDOW

In the example above, the QR code directs the observer to the Frs & Frosta Sparbanken Lund webpage. Once arriving at the webpage, at a determined and intermittent frequency, an in-site popup, known as a modal window, will appear over the bank webpage. In this solution, we call this modal window The Pride Window. This special window will offer the viewer the chance to provide feedback on current initiatives sponsored or undertaken by the bank that are currently in progress in their local area. The Pride Window asks the viewer to choose the initiative they are most interested in or that makes them most proud of their bank and community. In doing this, the bank effectively communicates recent or ongoing projects, gathers data on which current initiatives are viewed most favorably by the community, and engages customers and develops customer and community pride.

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Once selecting the initiative that makes them most proud, the viewer will be directed to another page giving more information about the choice they have made. Also, the viewer is prompted to enroll in the Local Legend competition, enabling them to become a Local Legend in their community. On top of this, they will also be prompted to share their choice through social media channels, thereby increasing the reach of the campaign and encouraging others to make their own preferences known also.

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THE LOCAL LEGEND COMPETITION

Our goal is to not only highlight projects that Sparbankerna is undertaking in their communities, but empower and engage local stakeholders. For those that provide feedback using the Pride Window, the participant will have the opportunity to become a Local Legend. At intervals selected by the community banks, a drawing will commence allowing for a Local Legend to be selected. They will be given the opportunity to award grant money (denomination determined by the community bank) to a social or environmental project within the community that meets certain criteria. This engages the community members in being active and aware of social and environmental projects in their communities, allows the legend to feel proud of the opportunity they provided and further enhances the pride that customers and the community feel in regards to Sparbankerna. The main message of the campaign is the question: r du stolt ver oss? This simple question penetrates to the essence of the challenge in that it prompts the viewer into reecting upon the initiative of the bank. We feel that, through the combined forces of the traditional/social media campaign, the Pride Window, and the Local Legend competition, we have enhanced the pride felt by Sparbankerna customers and communities, and facilitated the process of communicating and improving the good work of Sparbankerna. **Further marketing examples can be found in Appendix I.**

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WHY IS THIS CAMPAIGN IDEAL FOR SPARBANKERNA?

The Pride Window and Local Legend campaign is ideal for Sparbankerna branches throughout Sweden because it is interactive, synergistic, and virtuous. Rather than the advertisement communicating an aspiration or slogan, it communicates honestly and truthfully the initiative taken by the bank, and engages the viewers to ask themselves if this makes them proud. By receiving feedback on the community investments, Sparbankerna can be better informed as to what the community values, as well as giving the bank powerful data which enables them to better understand their customers.

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HOW WILL THE CAMPAIGN BENEFIT SPARBANKERNA?

Honesty Because the bank will be communicating initiatives which are in progress within communities, people will be able to see these events unfold around them. Being able to link real world initiatives with current advertising will give Sparbankerna unprecedented social capital in their communities. Local Knowledge By gaining feedback from local community members on initiatives undertaken, Sparbankerna will have tapped valuable local knowledge which will enable the banks to create tailored initiatives for their communities. A community which sees its aspirations and desires realised is a happy community which feels valued. Local Empowerment Rather than rewarding feedback with consumer products such as iPads, by rewarding participants with the chance to invest money on behalf of the bank, local communities will feel empowered and will know that the bank trusts them. Trust in the banking sector is obviously crucial to banking operations. By empowering individuals this trust will be increased dramatically. Moreover, empowered customers will develop greater roots of pride with their bank and community. Valuable Consumer Data The collection of data relating to individual preferences in community initiatives will enable Sparbankerna to create nancial products which might be better aligned with these tastes. As an example, a customer who shows a preference for environmental initiatives may be also interested in paperless statements or even investing money in mutual funds which are comprised of environmental businesses from their local region.
THIS IDEA SEEMS GREAT, RIGHT?! BUT ARE THERE ANY RISKS WITH THIS CAMPAIGN?

We believe that the rewards of this campaign greatly outweigh the risks, but it is very important that we highlight the big risk in undertaking such an interactive and live campaign. There is a reputational risk inherent in this campaign: If people perceive that Sparbankernas current social and environmental initiatives (which are advertised in the campaign) do not meet their expectations, or are not in synch with reality, then the positive

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virtuous cycle will quickly turn into a negative one. What is of fundamental importance in this campaign is that Sparbankerna maintains a high standard in its initiatives, because if it does not, the community will know, and quickly. But, reputational risk can also be viewed as an opportunity for Sparbankerna to establish their credentials as sustainable banks in local communities. The increased focus on the banks through this interactive campaign should be seen as an opportunity for them to deliver the highest quality social and environmental initiatives. By being transparent and delivering on their promises, people in the community will trust that Sparbankerna are serious about them and their communities. We recognise the simplicity of the solution in words yet the difculty in implementing the solution in a somewhat decentralized community bank model. Once the technical components are addressed (coding for modal window, data collection, etc.), the campaign can be applied to and specialized for each community. This ensures that each community bank remains autonomous while still meeting the needs of the communities they serve. We truly feel that this simple campaign - aimed at developing pride in Sparbankerna and the community and gathering data to better serve the community - can have lasting impacts. The initiatives undertaken and the data collected can direct Sparbankerna as they continue to address their future and sustainable banking.
THE FUTURE OF SUSTAINABLE BANKING

The proud campaign which we have recommended for Sparbankerna comprises the ingredients of sustainable banking: It is honest/transparent, engaging, empowering and focused on the future. These attributes are crucial operating procedures in a future which is made more uncertain by potential climate disruption and economic crises. The crucial element of sustainable banking in the future in our view rests upon the transparent and empowering use of customer data. We recommended in our campaign that the data drawn from our interactive campaign could be used by the bank to better facilitate the creation of local initiatives and products for established and potential customers. Further discussion of how this type of virtuous data collection is a crucial pillar of sustainable banking is necessary in order to elucidate our vision of a sustainable local bank.
A SUSTAINABLE BANK LISTENS AS WELL AS LEADS

The internet and social media has made for a complex media landscape and platform of engagement which punishes as effectively as it praises. A sustainable bank is no exception, and as we pointed out earlier, the risks of being disingenuous or deceptive in this complex

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landscape far outweigh the perceived advantages. But, a virtuous sustainable enterprise need not be concerned with such negativities, as a sustainable bank is only interested in engaging with people in this complex environment in a manner which is positive for the enterprise and the individual. In this complex environment a sustainable bank is able to listen to what people want, and in turn, craft responses and develop product offerings and initiatives which are mutually benecial individually, socially and environmentally. By being a good listener through social media engagement and interactive decision making (adjusting products and initiatives through positive feedback) a bank can become sustainable now and into the future.
BUT HOW EXACTLY WOULD THIS WORK? CAN YOU PROVIDE A SPECIFIC EXAMPLE?

Through interactive campaigning and the virtuous and transparent use of consumer data a bank is able to develop a number of products and services which are environmentally, socially and nancially sustainable. One such example is a xed-interest deposit. If a customer has provided feedback that they are interested in carbon reduction practices, endangered species and air quality, when creating a xed-interest deposit a sustainable bank can select investments and community initiatives which will have a social and environmental impact whilst providing the necessary returns for interest accumulation. The bank may invest a portion of a clients deposit into companies such as H&M (who has recently begun a garment recycling initiative), Solar Cities (which is deploying solar power systems aggressively) or Tesla (which is a leader in electric vehicle production), as a way to ensure that their money is appreciating whilst supporting companies that are seeking to reduce carbon emissions and improve air quality. The bank could also seek to invest money on behalf of the client in companies which are actively seeking to protect endangered species. At the end of the day the customer can be assured that they have earned interest on their investment whilst contributing to a better and richer world, not a poorer one. Another simple example of how a sustainable bank could engage with its customers could be in the process of nancing home purchases. When assessing loan applications the bank could include environmental parameters into the process which, if satised reduce the interest rate attached to the loan. Simple criteria such as energy efciency measures (energy rating of appliances to be installed, quality of lighting, sources of energy use), as well as building quality (existing efciency of a building), and private vehicle usage (number of cars to be kept in premises as well as fuel types), could all be considered in a loan application process with the sole aim of improving the quality of the investment made

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by both the bank and the customer. Through a process such as this the sustainable bank would be leading the customer towards a more environmentally investment which would be cost saving as well.
BANKING & SUSTAINING

Sparbankerna can make a difference by engaging with customers in an informative, virtuous and empowering fashion. Sparbankerna need not only be a safe place to deposit ones money or a good community leader, they can also be a guiding force towards a future that we can all be proud of. By directing money towards investments that have a social, environmental and nancial impact, Sparbankerna can help a customer be the change that they wish to see in the world and do so in a transparent and interactive way. The future needs leaders with a positive vision which is inclusive and engaging. Sparbankerna can become such a visionary by simply improving on its already impressive engagement in its local communities.
CONTACT US: !

Steven Curtis stevenkanecurtis@gmail.com 070-3089931

Josh Kirkman joshuakirkman@gmail.com 070-9416126"

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APPENDIX I. MARKETING EXAMPLES

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