The marketing boss of a major UK financial institution has said that any proposed merger between Lloyds TSB and HBOS could create confusion on the High Street for consumers.

AEGON marketing director, Steve Clode, who was previously marketing director at Nationwide, told The Drum: “HBOS, in particular, already has multiple brand identities so the merger with Lloyds will mean the brand stable will become too confused with multiple brands playing in the same space. They are more likely to choose the strongest brand in each case and put their marketing efforts behind that.”

He also stated that the merger is likely to see consolidation of brands such as Halifax and Cheltenham & Gloucester while efforts will be concentrated on promoting the ‘strongest’ brands.

“I can’t envisage going into a Lloyds branch and seeing both C&G and Halifax mortgage sections,” continued Clode. “The Bank of Scotland name could be retained, for example as the corporate banking brand.

He concluded: “Now that size and scale are no longer unassailable reasons for people to feel reassured, brands have to consider new ways of inspiring trust.”