The Olympic surfer Carissa Moore, the reality television contestant Avian Ku and the college football star Chevan Cordeiro have something in common: They all urge their thousands of social media followers to sign up for a Shaka checking account from Central Pacific Bank.
These Hawaiian celebrities were recruited by Central Pacific in Honolulu, a subsidiary of Central Pacific Financial Corp., to hype the all-digital checking account that debuted in November 2021. (“Shaka” refers to the hand gesture common in Hawaii that means “hang loose” or “right on.”) The $7.4 billion-asset Central Pacific, whose physical presence is limited to the Hawaiian islands, developed the online account with the same team that incubated a separate product, a challenger bank called
The no-fee Shaka account, which the creators say is the first digital checking account in Hawaii, offers early access to wages and $20 reimbursement of ATM fees each month. It is accessed through the Central Pacific Bank website or app, and was designed to attract young local customers to the bank but also play off the allure of the lush islands, which is particularly strong among Japanese tourists.
“There’s this fascination with Hawaii,” said Paul Yonamine, executive chairman of Central Pacific. “We thought, why aren’t we capitalizing on those markets better for the future growth of our bank?”
The Shaka account’s early success demonstrates how positioning a bank account as a breezy lifestyle brand, replete with social media support by local influencers, can entice new prospects. Since its debut in November, Shaka has accumulated 3,700 Hawaiian users, more than 60% of whom are new customers to the bank. In comparison, consumer checking accounts at Central Pacific normally grow by 1,000 net new accounts each year.
A research note from Piper Sandler was optimistic. Based on fourth-quarter data, analysts wrote that the all-digital Shaka accounts would continue to be a tailwind, highlighting that more than 50% of the customers were new clients to the bank.
The development of Shaka and Swell was part of a broader realization that in order to grow, Central Pacific must appeal to a larger audience, both at home and beyond. When Yonamine joined the institution three years ago, the average age of the bank’s customers was in their late 50s.
“We run the risk of becoming irrelevant in 15 to 20 years,” he said.
Swell, the challenger bank in which Central Pacific is now a minority investor, is meant to reach customers on the mainland U.S. and mark the start of Central Pacific’s banking-as-a-service operations. Shaka will later open to the broader U.S. as well.
But another, unusual piece of the strategy is to draw Japanese tourists, the state’s largest source of international visitors and a segment it will target as part of its tourism recovery efforts in 2022. Many Japanese tourists are repeat visitors to Hawaii, so Yonamine reasons that they will welcome an online account with a debit card that eliminates the need to rack up exchange fees or carry loads of cash. Already, a majority of the bank’s portfolio of nonresident aliens primarily reside in Japan.
Social media
“We know our Hawaii consumers have an affinity for working with local businesses, so we wanted to find influencers with a network here,” said Kimberly Haruki, brand and communications manager at Central Pacific.
The bank equipped 50 well-known Hawaiians with general talking points and vibrantly colored T-shirts, tote bags and debit cards decorated with the curly Shaka logo. For example, Corina Quach, a food blogger under the handle @fiveftfoodie, promoted Shaka in a post while touting the importance of supporting local businesses. Others highlighted the ease of banking on the go or the convenience of ATM fee refunds when traveling.
“The idea of positioning a financial product as a lifestyle brand was critical to our strategy,” said Haruki. Some of Central Pacific’s recruits, such as the former sumo wrestler Konishiki Yasokichi, bridge Hawaii and Japan with name recognition in both regions. When pandemic conditions allow, Central Pacific will also host events for its Shaka customers, such as an opportunity to meet one of its brand ambassadors.
In the future, accounts will be offered to former Hawaiian residents who live on the mainland and, eventually, those who love to visit Hawaii. A Shaka account for small businesses is in the works, as is a Shaka loan.
“The [lack of] ATM fees, the two-day pay advance — all these things are wonderful,” said Yonamine. “But at the end of the day, people become loyal to brands. That’s our focus right now.”
