HSBC throws in fringe benefit for biz banking

Long Island Business News, Dec 26, 2003 by Claude Solnik

Banks routinely compete for customers on a number of items, including deposit rates, token gifts handed out at branches and requirements for opening checking accounts. But here's a new one: free advertising.

HSBC launched a program that lets one business customer each month set up a free display in the lobby of its Melville branch near the teller line.

Melville Branch Manager Cindy Kessler started the program in September for business depositors after launching a similar program as branch manager for Citibank in Wantagh.

The idea, Kessler said, is to show the bank's connection to local companies and give those businesses some free advertising.

She says this is an example of banker and business working together.

This program has stirred people to talk about our clients and gives them recognition, said Kessler, who noted that most of the Melville branch's customers are businesses. We hope this will build more business clients for the bank.

A number of business customers, including printing companies, vitamin wholesalers and clothing stores, have taken advantage of the opportunity already.

In December, Melville-based Estelle's Dressy Dresses got to strut its stuff, and Ikon Office Solutions is on deck for January. Estelle's went way out, setting up two life-size mannequins that had their outfits changed weekly. The dress retailer is also using a table to display business cards, coupons and a chance to win apparel valued at $1,000.

We received a tremendous response from the display, said Estelle Rosenthal, who owns the store. The coupons given out at the bank are being used.

Whether or not the display leads to more business accounts or more loyalty from existing accounts remains to be seen, but the program has clearly spawned interest from existing customers.

Our clients like the fact that we're active in our community, said Kessler. They want a bank that works with them.

The program is available only at the Melville branch of HSBC, which is based in England and operates 23 branches in Suffolk and 22 in Nassau. But the bank is considering the possibility of rolling out the program at other Long Island locations.

People like this. I ask them, 'Do you have a business account here?' Kessler said. I think it's a great way to grow my business too. It's free advertising for the business client.