Scotiabank should be ashamed. They recently had a bit of extra change overflowing their vaults from all those service charges to customers so they decided to invest it in marketing. They’ve purchased the rights to have the Air Canada Centre, home of the Toronto Maple Leafs hockey team and Raptors basketball team, renamed Scotiabank Arena. I find this business decision to be an appallingly poor use of nearly a billion dollars. Let’s face it. We have five banks in Canada and because of excellent federal regulation our banks are strong and all five pretty much play on a level field. One’s as good as the next and they’re all pretty good. They pay reasonable dividends to investors and are less prone to financially raping their customers with dodgy lending schemes than the greedy American financial institutions. Therefore, how much do they need to market to a captive audience? To the tune of more than $800 million?
As a retired Corporate Marketing Manager I totally understand the merits of marketing and attaching your corporate name to a high-profile sports venue. Let’s leave that to the McDonald’s, the Coca-Cola’s and other brands like the beer companies who have a stake in the business. In the case of Scotiabank, their name on the Air Canada Centre would be flaunted in the faces of hundreds of thousands of commuters and visitors who drive past the old hangar on the Gardiner Expressway every day. Their head office tower in downtown Toronto with the reflective windows containing real gold is already an icon on the Toronto skyline. Do banks really need to promote to a captive audience with the kind of exposure offered by a sports and concert facility?
Imagine what else Scotiabank could have done with such an enormous amount of money if they put it to better use within the communities where they sell mortgages, finance car loans and invest our life savings. Have they ever considered a network of shelters for victims of domestic violence and homelessness? Scotiabank Shelters. Or what about investing in after school programs in economically and socially challenged neighbourhoods? Scotiabank Investing in Lives programs. Many young people go to school hungry every day. Scotiabank Healthy School Meals. A large segment of our population is financially illiterate and have no hope of climbing out of the poverty and/or debt cycle. Perhaps support for education, mentoring and interning in financial institutions for young people? Scotiabank Banks on Futures.
More significantly, what about emblazoning the Scotiabank logo on a dedicated new cancer treatment facility? One billion dollars would fund one heck of a fine building. It could even include accommodation for family of out-of-town patients affected by onerous accommodation and parking costs at Toronto Hospitals—something like Ronald McDonald House for families of adult patients. Or they could build smaller facilities in rural communities that don’t have access to local treatment centres. I found Scotiabank’s choice of allocating nearly one billion dollars to having their name attached to a sports venue that charges hundreds and even thousands of dollars for tickets to events affordable by only the elite to be shameful and inappropriate. Banks have a greater corporate responsibility to serving their community and Scotiabank could have done so much more. It’s just wrong. Or am I?
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