2023May 26
Shorten the name to four letters, then change the face
The abbreviation was changed and the identity system was updated in the same month. The reason submitted to the regulatory agency stated that the old name was difficult to read and remember.
Change component(5)
- Abbreviation. LienVietPostBank is shortened to LPBank, as approved by the State Bank.
- Identity system. Inherits from the old system, rebuilt in a simpler, more memorable, readable, modern, and dynamic direction.
- Signage. Replaced at the headquarters and all branches, transaction offices nationwide, along with a roadshow covering 99 points.
- Domain name. Transition from lienvietpostbank.com.vn to lpbank.com.vn.
- Principle. Transition gradually, cost-effectively, and in accordance with specific conditions.
Read at the professional level(4)
- Four letters are a technical threshold. A four-letter abbreviation can be neatly formed in any size, read once and done, typed without spelling errors. A sixteen-character name either needs to wrap to a new line in small formats or be condensed to the point of being unreadable.
- Combine two teaching sessions into one. Changing the name and rebranding in the same month is an expensive and risky operational choice, but it avoids the issue of having customers learn twice over two years. For retail banks, each re-learning session means losing loyal customers.
- Retaining the old system because the name is the largest change. When the name changes, the text has already been completely altered. Changing the symbol as well removes all points of reference, leaving nothing connected to the old identity. Keeping the old image maintains a single thread, and one thread is enough.
- Changing the domain name is a cost that few consider in branding expenses. The old address must still remain active for a while to retain existing customers, so during that period, the brand has two addresses running simultaneously, and everything previously printed still points to the old address.
Why change(2)
- The reasons cited by the bank are rarely documented: the old name had too many characters, was hard to pronounce, and hard to remember, making recognition difficult and communication effectiveness low. This acknowledges that the name failed in usage, not in conception.
- The old name is a three-part composite, each part having its historical reason. However, what is historically accurate may not be easy to pronounce, and a retail bank needs to be called by name thousands of times a day.
Within the brand system(2)
- The old name is a three-part composite, with each part stemming from a merger or collaboration. It is an architecture of names that accumulates: historically accurate, but each additional part makes the name longer and harder to pronounce.
- Reducing to four letters cuts off that cumulative style. The cost is the connection to the postal network, which was a real differentiating advantage, no longer present in the everyday name and must be communicated through other means.
Trade-off(2)
- What must be paid is the three historical parts cut from the everyday name, among which the part associated with the postal network was once this bank's distinguishing advantage.
- What is purchased is a four-letter name, memorable after one reading, easy to type into a search box without spelling errors. For a retail-focused bank, this is not just an aesthetic issue but a matter of annual communication costs.
Professional assessment(4)
- Can be closed. State the real reasons in writing submitted to the regulatory agency. Very few businesses dare to officially document that the name they once chose is hard to read and remember.
- Covering 99 points means understanding that the name change cannot be completed at the announcement event. For a retail bank, the new name truly lives when the counter staff calls it out naturally.
- Still open-ended. The advantage from the previous postal network is embedded in the name, visible to anyone who reads it. Now it must be recounted through communication, and what needs to be told is always more expensive than what is revealed.
- The four letters LPBank do not carry meaning on their own; they are merely the initials of the old name. This type of abbreviation is easy to read but empty, so all meaning must be infused later through communication, which is a long-term cost.
Takeaway(1)
- When compared to Viettel in 2018, the two naming challenges are distinctly different. Viettel changed its name because what they were doing had surpassed the name they carried. LPBank changed its name because the old name was not easily pronounced, even though it was still accurate. The second challenge is much more common among Vietnamese businesses and is also easier to recognize: try reading your company's name over the phone for a stranger to write down.
Similar case(2)
- Viettel 2018 Two reasons for the name change are quite different: Viettel due to name overlap, LPBank because the name is hard to pronounce.
- BIDV 2022 Two banks, both stating the principle of gradual conversion instead of a simultaneous change.