ASA Bans Nationwide Ads for Misleading Claims on Branch Closures
Following ASA's decision, it was found that consumers could be misled into believing that Nationwide would not shut down branches permanently.
Building society Nationwide has seen a series of its ads banned by the Advertising Standards Authority (ASA) after being accused of misleading customers.
The TV, radio and press ads for the fictional A.N.Y Bank aired in October and November 2023. The ads featured conversations between staff, with actors Dominic West and Sunil Patel leading the way. In the TV ad, a bank boss talked about branch closures and highlighted the differences between A.N.Y Bank and Nationwide, which was keeping its branches open.
The campaign was part of Nationwide's major rebrand, the largest in almost forty years. The new brand platform, 'A good way to bank', was introduced. Nationwide aimed to position itself as a "modern and confident challenger to the big banks" during this rebranding effort.
The adverts generated 281 complaints to the ASA, including from rival Santander, questioning whether the ads were misleading because Nationwide had closed some branches and reduced trading hours at others.
Nationwide responded to the ASA by explaining that as a mutual society owned by its members, who are all existing customers, the ad was aimed at them.
The building society introduced a 'Branch Promise' in 2019, ensuring that no town or city would be left without a Nationwide branch. In 2023, they further committed to not closing any branches until at least 2026. Nationwide revealed to the ASA that they are the only remaining bank branch in 85 UK towns.
Nationwide presented two tables displaying the percentage of bank branches closed between 2013 and 2023. Among the 10 institutions listed, Nationwide had closed the smallest percentage of its branches and had the most branches still operating.
Nationwide's Efforts to Adapt and Innovate
The document revealed that 20 branches had closed in the 18 months leading up to the ad campaign, with two more closing in 2023. Additionally, Nationwide shared information about a trial period where the opening hours of 88 branches were reduced.
Emphasizing Long-Term Commitment
The watchdog found that the ads could give consumers the impression that Nationwide had made a decision to keep branches open, including local ones, for the benefit of customers.
The ASA also stated that the ads could attract both potential new customers and existing account holders. The watchdog suggested that customers thinking about switching to Nationwide might view the promises about branch openings as a sign of a long-lasting commitment.
The TV and press ads mentioned that the Branch Promise would be valid until 2026. However, the ASA felt that this important information could have been overlooked due to the presentation of the creative.
The watchdog acknowledged that Nationwide had closed the smallest percentage of its branches compared to other institutions. Despite this, the bank had still shut down 20% - which amounts to 152 branches.
The ASA determined that the advertisements were deceptive because they suggested that Nationwide would not be shutting down branches in the future and had not closed any recently.
As a result, Nationwide was advised not to mislead consumers regarding the closure of its branches. The ads may not be broadcasted in their current format again.
At the launch of the rebrand, Nationwide's director Richard Warren talked to Our Website about the new look. He said it reflects the building society's goal to make banking fairer and more rewarding.
The rebrand project included more than just advertising. It also involved updating the app, website, and visual identity, which now features a sleeker logo.
In October, the relaunch campaign was ranked as one of the most effective ads by System1, a firm that measures effectiveness. It was also identified as one of the top banking ads tested by the firm, performing in the top 10%.
Editor's P/S:
The Advertising Standards Authority's (ASA) ruling against Nationwide's deceptive branch closure ads highlights the importance of transparency and accuracy in marketing. Despite the society's efforts to adapt and innovate, the ASA found that the ads created a false impression of Nationwide's branch closures and long-term commitment. The watchdog's decision serves as a reminder that businesses must be cautious in their advertising claims and fully disclose relevant information to consumers.
Nationwide's rebranding aimed to position it as a challenger to larger banks, emphasizing fair and rewarding banking practices. However, the ASA's ruling raises concerns about the society's commitment to these values. The ads' misleading nature undermines trust and may damage Nationwide's reputation in the long run. It is crucial for businesses to ensure that their marketing campaigns align with their core principles and do not misrepresent their services to customers.
