Banking on Name Change: WaMu

Soon the Washington Mutual branch on your corner may be, simply, WaMu.

Washington Mutual Inc., the largest U.S. savings and loan, has begun changing its brand name to WaMu, a nickname used by customers, employees and analysts for more than a decade.

While the Seattle-based thrift’s legal name won’t change, the shorter name, pronounced WAH-moo, will start appearing on branches and in advertising in the next few months. “It sets them up to come across as the more caring, casual, customer-friendly bank,” said Robert Passikoff, president of Brand Keys Inc., a New York specialist in branding strategy for banks. “It’s more engaging to say WaMu than Washington Mutual.”

To control costs, Washington Mutual, which operates more than 2,000 branches in California and elsewhere, will put up new signs when it opens or remodels branches, rather than change everything at once.

“This is a very low risk migration for us,” Chief Executive Kerry Killinger said. “Our market research shows our customers like [the shorter name]. They say the name is easy to remember, it’s fun, it feels friendly and it sets us apart from more traditional, stodgier banks.”

Some companies take the ultimate step of changing their legal names. Scotch tape maker 3M Co. was once known less mellifluously as Minnesota Mining & Manufacturing Co.

Marketing experts, however, see risk in the name change. “They’ve built up a lot of value in the Washington Mutual name,” said James Gregory, chief executive of CoreBrand in Stamford, Conn. “To walk away is something they need to do carefully. The downside is there could be confusion. The upside is if they execute brilliantly, it can create a lot of excitement and energy.”

Passikoff added: “It’s still important for the bank to be efficient and accurate and offer a wide range of services.”