Visualizing the World's Most Valuable Bank Brands
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The World’s Most Valuable Bank Brands

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Visualizing Corruption Around the World

Visualizing The World’s Most Valuable Bank Brands

When most people think about brands, they often picture iconic consumer marks like Coca-Cola or Apple.

But in the realm of financial services, the importance of having a strong consumer brand is also rapidly growing. After all, with hundreds of new fintech entrants positioning themselves to be the “banks” of the future, it seems that brand awareness may be one of the major competitive advantages that incumbent banks can use to protect themselves.

Which financial institutions have the strongest brands, and which brands are the most valuable?

Valuable Bank Brands in 2019

Today’s chart looks at the world’s most valuable bank brands, according to a recent report from Brand Finance.

It should be noted that brand value in this context is a measure of the “value of the trade mark and associated marketing IP within the branded business”. In other words, it’s measuring the value of intangible marketing assets, and not the overall worth of a business itself.

Here are the top bank brands by value in 2019:

Top bank brands by value

For the third year in a row, the Industrial and Commercial Bank of China (ICBC) takes the top spot, with a brand value of $79.8 billion.

Wells Fargo is the top U.S. bank by brand value, coming in 5th place – however, the bank actually fell two spots from last year’s ranking while simultaneously losing 9% of its brand value. This is not surprising in light of the recent publicity challenges faced by the bank.

The Ascent of Chinese Banks

It’s also interesting to note that Chinese banks have taken all four of the top spots on the list, with ICBC, China Construction Bank, Agricultural Bank of China, and Bank of China having a combined brand value of over $250 billion.

Here’s a look at the ascent of Chinese banks over time:

Ascent of China Banks

In contrast, in the entire span of 2009-2014, there were zero Chinese banks that cracked the top five.

The Strongest Bank Brands

Finally, here is a look at the strongest bank brands.

It’s worth noting that in contrast to value, these are banks that have executed on their branding, marketing, and sales strategies to have brands that ultimately create a competitive advantage for their business.

Strongest bank brands

Brand Finance measures brand strength by looking at a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance.

For more insights, don’t forget to check out Brand Finance’s report.

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Mapped: The World’s Biggest Private Tax Havens

What countries or territories do the ultra-wealthy use as tax havens?

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Biggest Tax Havens Share

The World’s Biggest Private Tax Havens

When the world’s ultra-wealthy look for tax havens to shield income and wealth from their domestic governments, where do they turn?

If you’re putting money in offshore bank accounts in order to save on taxes, there are two main criteria you’re looking for: secrecy and accessibility. Based on pop culture and media reports, you might imagine a secretive bank in Switzerland or a tiny island nation in the Caribbean.

And though there is some truth to that logic, the reality is that the world’s biggest tax havens are spread all over the world. Some of them are small nations as expected, but others are major economic powers that might be surprising.

Here are the world’s top 20 tax havens, as ranked by the 2020 Financial Secrecy Index (FSI) by the English NGO Tax Justice Network.

Which Countries are the Biggest Tax Havens?

The FSI ranks countries and territories from all over the world on two criteria: secrecy and scale.

  • Secrecy Score: How well the jurisdiction’s banking system can hide money. This includes analysis of ownership registration, legal entity transparency, tax and financial regulations, and cooperation with international standards.
  • Global Scale Weight: What is the jurisdiction’s share of the world’s total cross-border financial services? This metric is based primarily on the IMF’s Balance of Payments statistics.

By weighing a country’s ability to hide money by its relative share of offshore financial services, we see the tax havens with the biggest impact on the global economy.

RankJurisdictionRegion
1🇰🇾 Cayman IslandsCaribbean
2🇺🇸 United StatesNorth America
3🇨🇭 SwitzerlandEurope
4🇭🇰 Hong KongEast Asia
5🇸🇬 SingaporeSoutheast Asia
6🇱🇺 LuxembourgEurope
7🇯🇵 JapanEast Asia
8🇳🇱 NetherlandsEurope
9🇻🇬 British Virgin IslandsCaribbean
10🇦🇪 United Arab EmiratesMiddle East
11🇬🇬 GuernseyEurope
12🇬🇧 United KingdomEurope
13🇹🇼 TaiwanEast Asia
14🇩🇪 GermanyEurope
15🇵🇦 PanamaCaribbean
16🇯🇪 JerseyEurope
17🇹🇭 ThailandSoutheast Asia
18🇲🇹 MaltaEurope
19🇨🇦 CanadaNorth America
20🇶🇦 QatarMiddle East

At a glance, the top 20 tax havens are spread out across regions. Just under half of the list is located in Europe, but the rest are spread out across the Americas and Asia.

And the jurisdictions are opposites in many ways. They include financial powerhouses like the U.S., Japan, and the UK as well as smaller nations and territories like the Cayman Islands, Hong Kong, and Luxembourg.

But one surprising thing many of them have in common is a link to England. In addition to the UK, four of the top 20 tax havens—Cayman Islands, British Virgin Islands, Guernsey, and Jersey—are British Overseas Territories or Crown Dependencies.

Also worth noting is the importance of scale in the rankings. The highest ranking jurisdictions by secrecy score were actually the Maldives, Angola and Algeria, but they represent less than 0.1% of total offshore financial services.

Best Place To Hide Private Vs. Corporate Tax

Some of the listed tax havens might be confusing to nationals of those countries, but that’s where relativity is important. The U.S. and Canada might not be tax havens for American or Canadian nationals, but the ultra-wealthy from East Asia and the Middle East are reported to utilize them due to holes in foreign tax laws. Likewise, the UAE has reportedly become a tax haven for Africa’s ultra-wealthy.

In addition, many of the countries used as tax havens for individual wealth are also utilized by corporations.

The Tax Justice Network’s 2021 assessment of corporate tax havens listed the British Virgin Islands, Cayman Islands, and Bermuda as the top three tax corporate tax havens.

While individuals might create shell companies in tax havens to hide their wealth, corporations are usually directly incorporated in the tax haven in order to defer taxes.

But the tax haven landscape might soon shift. The G7 struck a deal in June 2021 to start taxing multinational corporations based on the revenue generated in each country (instead of where the company is based), as well as setting a global minimum tax of 15%. In total, a group of 130 countries have agreed to the deal, including India, China, the UK, and the Cayman Islands.

As the campaign to bring back deferred taxes ramps up, the question becomes one of response. Will the ultra-wealthy individuals and corporations start to work in tandem with the new rules, or discover new workarounds and tax havens?

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Money

How COVID-19 Has Impacted Black-White Financial Inequality

COVID-19 has worsened Black-White financial inequality, with Black Americans more likely to see negative impacts to their job and income.

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Black-White Financial Inequality

How COVID-19 Impacted Black-White Financial Inequality

COVID-19 has disrupted everything from economic markets to personal finances, but not everyone feels its effects equally. When compared with White Americans, Black Americans’ financial situations have been disproportionately affected by the pandemic.

In this infographic from McKinsey & Co., we outline the financial vulnerabilities of Black Americans, their increased usage of financial services since the onset of the pandemic, and their lower satisfaction levels with those services.

Financial Vulnerabilities of Black Americans

Compared to White Americans, more Black Americans say their job and income have been negatively impacted by COVID-19.

 My job has been negatively impacted by COVID-19My income has been negatively impacted by COVID-19
White Americans29%24%
Black Americans36%31%

Looking forward, Black Americans also report greater job security concerns and have less savings to protect themselves financially. In the event of a job loss, 57% of Black Americans report their savings would last four months or less, compared with 44% of White Americans.

With less of a cash buffer on hand, Black consumers are also more likely to have missed a recent bill payment.

 Skipped at least 1 paymentPartially paid at least 1 billPaid in full
White Americans16%22%62%
Black Americans51%22%27%

This includes being unable to pay for basic items such as utilities, telephone and internet, and mortgage payments.

How do they begin to manage these challenges?

Use of Financial Services

Black Americans increased their use of financial services more than White Americans.

Banking activities in the past two weeks, per March-June 2020 surveys

 Withdrew cashDeposited cashDeposited checksContacted bank for service on accountOpened new accountsReceived advice on digital tool usage
White Americans35%20%40%9%3%4%
Black Americans47%31%30%15%7%7%

For example, Black Americans were about twice as likely to request account service, open an account, or receive advice on digital tools. In addition, Black families were more likely to leverage a fintech platform and have been more active in opening fintech accounts since the start of the COVID-19 crisis.

However, as Black Americans seek out more financial help, some are not happy with the service they receive.

Satisfaction with Financial Services

Overall, Black families are less satisfied than White families across all types of financial activities. These differences were most pronounced for digital tool advice, where 38% of Black Americans were dissatisfied or very dissatisfied, compared with just 12% of White Americans.

Even though Black people were less satisfied with banking services, they were more likely to say that bank performance was above their expectations. This may suggest that expectations are lower for Black families than they are for White families.

Black Americans were also much less likely to trust their financial advisor.

 Do not trust/losing trustIndifferentGaining trust/trust
White Americans10%9%81%
Black Americans32%9%59%

From March-June 2020, the percentage of Black people distrusting their advisors rose from 12% to 32%. Over the same time period, White people’s distrust of financial advisors remained stable at 10%.

A notable exception: White and Black Americans were both satisfied with fintech providers. Only 5% of White Americans and 8% of Black Americans expressed some level of dissatisfaction with fintech companies.

Time to Examine the Financial System?

COVID-19 has perpetuated Black-White financial inequality. Data shows that Black families are more likely to be financially vulnerable, and increase their use of financial services during the COVID-19 crisis. However, they are less likely to feel satisfied with these services.

Financial institutions can urgently review their remote and in-person customer service procedures to ensure the needs of all families are being met.

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