Banks depend on their reputation to stay in business. Reputation is also very much bound by regional influences and differences, as I discovered during a one-of-a-kind study on the corporate reputations of wholesale banks in the Gulf (GCC) region. A bank's ‘emotional appeal’ is a key driver of its reputation, as emotions significantly shape people’s behavior, especially their decisions and actions (e.g., ‘word of mouth’). Banks perceived as ‘liked’, ‘trusted’, ‘respected’, or ‘admired’ — all emotional qualities — tend to achieve higher reputational ratings.

This emotional appeal is shaped by several factors, including [1] perceptions of the bank’s client-focused approach (as opposed to a purely bank-driven one), [2] its distinctiveness (in delivering desired qualities), [3] the competence, empathy, and friendliness of its staff (at all levels), and [4] its transparency and external engagement (i.e., being open, interactive, and receptive to external input).

Business clients — executives and senior managers of companies — emotionally support banks they view as fair and responsible toward clients, employees, and other stakeholders like regulators and communities. In my study about excellence in Gulf (GCC) banking, I noticed that banks are evaluated on more than financial metrics alone; nonfinancial behaviors play a critical role in shaping clients’ perceptions of excellence.

Local GCC champions such as SNB, QNB, First Abu Dhabi Bank/FAB, National Bank of Kuwait, Al Rajhi Bank, Emirates NBD, Riyad Bank, SAB, and Kuwait Finance House excel at fostering authentic emotional connections with foreign businesses. Consequently, foreign companies often choose to partner with these local leaders in the GCC rather than with globally recognized giants from the West or East (e.g., UBS, Deutsche Bank, J.P. Morgan, MUFG, etc.).

While (Gulf) banking may appear to be a rational, data-driven industry, client emotions play a crucial role in decision-making, particularly in answering questions like, “Do we truly want a relationship with this bank in the Gulf region?”

Interestingly, emotional appeal as a strategic business concept holds significantly greater importance in the Gulf region compared to other parts of the world (my empirical GCC study was part of a series of studies about the corporate reputations of wholesale banks in different parts of the world).

The Gulf region is a hard nut to crack for Western and Asian banks. 3,000+ C-suite executives and senior managers of Fortune Global 500 and Forbes Global 2000 companies fully agree: a large majority of them nominated GCC banks as ‘best bank to do business with’ in the Gulf region. The flip side? A cascade of opportunities for Western and Asian banks. Having said that, wholesale banking — corporate, investment, and commercial (SME) banking — in the Gulf region certainly isn’t a ‘numbers game’.