A fairly simple suggestion, at least in what it is; Two items. One of which is a item for the hand slot, to be carried, and the other is a armor piece such as the hands or feet, whatever. Ahem.
Basically, what I want here is the ability for someone to carry a flag with their Heraldic symbol on it for organization/points for style/whatever. Two different flags for different things; The large flag that would be carried in your hands (I believe the flags found in Mount and Musket prove a fabulous example of this) which would be largely worthless in a actual combat. I imagine this would be a 0 slot item with this in mind. No other purposes other than cosmetic in a physical code sense.
The other item is a more passive heraldic flag that would rest on the players back similar to the command-banner-thingy that pops up for Battalion orders. This would actually have to be able to show up without carrying it. I believe that having a hands/foot item to mirror a existing one would be the easiest way to do this, unless there is some button you can code in or something. (For instance; Two leather gloves, each with identical stats but one puts the flag on the player's back.) Perhaps if you felt particularly productive you could make a Strange variant that resembles the Japanese stuff for all the anime players there are in c-rpg, but that might actually take some work.
In my head I believe the held flag and armor flag would be both fairly straight forward... There are plenty of the former about other mods and possibly even already in the game and the latter could take the Battalion banner and shoe horn it in.
This would allow clans to show some organization or to simply "look cool". It would also differ from the Battalion banners in that both teams would be able to see it as well as it actually being heraldic. (So, for instance, I can lead LLJK into fabulous battle not with a panther but, instead, the sacred triple hog. And so on.)
Fairly straight forward, yes?