Banking on sports sponsorships

The majority of the world’s most valuable banking brands leverage sports sponsorships to enhance brand equity, reach new audiences and strengthen community ties, according to brand valuation and strategy consultancy Brand Finance.

Scott Moore, sports services senior consultant at Brand Finance, says: “North American banks increasingly view sponsorships not merely as tactical manoeuvres for short-term gains, but as strategic long-term investments that weave their brands into communities’ cultural and social tapestries.”

Securing naming rights to stadiums, for example, provides banks with continuous and prominent exposure. “By reinforcing brand recognition over extended periods, venue naming rights often surpass the impact of intermittent, smaller-event-based sponsorships that have traditionally been the predominant trend,” says Moore. He adds that banking brands account for nearly a quarter of all stadium naming rights deals in American football and 16% of stadiums hosting the leading sports leagues in the US.

Brand Finance’s data reveals that banks increasingly align their brands with sports that attract affluent demographics. Golf, for example, primarily appeals to high-income groups, which are key targets for premium banking services. “Brand Finance’s Global Brand Equity Monitor research indicates that high net worth individuals who follow golf and tennis overindex by 66% and 81% respectively, compared to the general population,” says Moore.

South African banks have a long-standing tradition of investing in the country’s major sports: football, rugby and cricket. Nedbank sponsors the Nedbank Cup, while Absa had a decade-long partnership with the Absa Premiership and sponsorship of the Springbok rugby team. Standard Bank has been actively involved in the South African national cricket team’s setup, while FNB now sponsors the Springboks and holds the naming rights to FNB Stadium. Additionally, Nedbank has maintained a long-standing sponsorship of the Nedbank Golf Challenge, while Investec sponsors both the men’s and women’s South African Open tournaments.

“There is a clear link between sponsorships and improved brand consideration among South African sports fans. The latest Brand Finance South Africa Sports Fans study confirms that sponsors in South Africa reap long-term brand benefits of up to a 20% lift in consideration vs non-fans,” says David Wingfield, strategy and insight consultant at Brand Finance Africa.

As with any sponsorship, banks need to measure the impact of long-term sponsorships. Moore says: “Accurate measurement ensures strategic alignment, optimises marketing spend and maximises return on investment. When sponsorship outcomes are quantified, banks can refine future sponsorship initiatives, improve stakeholder communication and fan engagement, demonstrate accountability, safeguard their reputation and justify continued investment in strategic partnerships.”

Beyond stakeholder communication and fan engagement, sports sponsorships also have the unique ability to contribute to national pride and unity. A staggering 94% of South African sports fans believe that victories by national teams have a net positive impact on the country.

“For banking brands, this means aligning sponsorship strategies with nation-building efforts, supporting national teams and capitalising on the global exposure that international sports offer. South African sports represent a rich, multifaceted landscape for brands to explore. The time is now for businesses to act and make their mark in this evolving sports economy, driving long-term success and contributing to the continued growth and vibrancy of our South African sports culture,” says Wingfield.

The big take-out: There is a clear link between sponsorships and improved brand consideration among South African sports fans.