Westpac goes bananas
(10 December 2009 – Australia) Westpac Banking Corporation has justified its decision to raise interest rates, by 45 basis points, in an email to customers with an animated video comparing mortgages to banana smoothies.
The email from the new group executive, people and transformation, Peter Hanlon, begins simply with a ‘once upon a time’ and goes on to explain that the price of banana smoothies went up after a storm damaging banana crops pushed up the price of bananas.
‘That's why the price of smoothies increased by 50 cents’, says the voice. ‘In some ways a bank is really just like a company that sells banana smoothies. A bank is a business that buys and sells something … only in this case that something is money’.
The bank goes on to justify its actions by saying that all interest rate decisions were necessary and if it did not make these hard decisions then it would not be in business ‘tomorrow’ and would not ‘be there’ for its customers.
A spokeswoman said the banks intentions were honourable and they were trying to simplify a complex issue.
The clip was made two months ago to help staff understand the global financial crisis. Based on feedback it was given a wider airing.
Westpac was trying to use the visible example of bananas and how their price was affected by a 2006 cyclone in Queensland, the spokeswoman said.
Dr Paul Harrison, senior lecture of marketing, advertising and public relations at Deakin University, told AM, that it is a wacky way of trying to convince people that rate increases are justified.
Dr Harrison also added from his perspective that the animated clip appears condescending and patronising; consumers living with the rate rise may feel the same way too.
However, Dr Harrison commends the bank for admitting that they are a business; consumers often liken banks to a community service, so there is a bit of honestly in the clip, Mr Harrison highlighted.
‘That's why the price of smoothies increased by 50 cents’, says the voice. ‘In some ways a bank is really just like a company that sells banana smoothies. A bank is a business that buys and sells something … only in this case that something is money’.
The bank goes on to justify its actions by saying that all interest rate decisions were necessary and if it did not make these hard decisions then it would not be in business ‘tomorrow’ and would not ‘be there’ for its customers.
A spokeswoman said the banks intentions were honourable and they were trying to simplify a complex issue.
The clip was made two months ago to help staff understand the global financial crisis. Based on feedback it was given a wider airing.
Westpac was trying to use the visible example of bananas and how their price was affected by a 2006 cyclone in Queensland, the spokeswoman said.
Dr Paul Harrison, senior lecture of marketing, advertising and public relations at Deakin University, told AM, that it is a wacky way of trying to convince people that rate increases are justified.
Dr Harrison also added from his perspective that the animated clip appears condescending and patronising; consumers living with the rate rise may feel the same way too.
However, Dr Harrison commends the bank for admitting that they are a business; consumers often liken banks to a community service, so there is a bit of honestly in the clip, Mr Harrison highlighted.
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