Vertrouwen komt te voet en gaat te paard. Ever heard of it? No? Neither did I before I read this blog post. With a little creativity, the translation can be done quickly:
Trust comes on foot and leaves on horseback.
The Dutch proverb stands for an important statement that hardly applies to any other industry as much as the financial sector. Because here in particular, trust is hard to gain but easy to lose.
In a world where information is disseminated in fractions of a second and opinions are formed just as quickly, public trust is the most valuable asset for any company. But in an environment that is often characterized by mistrust and scepticism, how can a company’s own reputation be preserved and, in the best case, even strengthened? The answer lies in a well thought-out and proactive PR strategy. However, public relations is not just a tool for damage limitation in times of crisis; it is a continuous process that shapes a company’s image and anchors it in the public’s perception.
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Why PR is essential in the financial sector
Financial companies operate in a market that is both highly regulated and highly complex. This complexity often makes it difficult for the public to understand business practices and decisions. However, a lack of understanding can quickly lead to mistrust, which in turn can damage a company’s image. A strong PR strategy therefore offers numerous advantages that go far beyond mere crisis management:
- Building trust through transparency: Customers, investors and the general public must be able to trust that a company is secure, stable and reliable. Transparent communication is the key to gaining and maintaining this trust.
- Reputation as strategic capital: A company’s reputation is an invaluable asset. A strong brand can serve as a competitive advantage by setting the company apart from the competition and making it more attractive in the eyes of customers and investors alike.
- Crisis prevention and management: In the financial sector, a single scandal can have devastating consequences. A well-thought-out PR strategy can help prevent crises by identifying potential risks at an early stage and taking proactive measures. If a crisis does occur, PR can help the company respond quickly and effectively to minimize the damage.
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Increase in brand awareness
PR is also a powerful tool to increase a company’s brand awareness. Through targeted media relations, events and campaigns, a financial company can communicate its messages to a wide audience and increase its visibility. An impressive example of this is the British neobank Revolut.
With clever campaigns and a strong social media strategy, the fintech has established its brand as synonymous with modern banking. Particularly striking: Revolut uses targeted PR to actively participate in the current discourse in the industry in addition to constantly sharing milestones. Just last month, for example, the company issued a press release calling for a commitment to compensating victims of fraud. This clear communication has not only made the company popular with digital-savvy customers, but has also increased its reach enormously – from a start-up to a global brand with 50 million users at the last count.
From tragedy to rebirth: building trust after a crisis
Damage to a company’s image can be devastating in the financial world, but the right PR strategy can turn even a crisis into an opportunity. With transparency and social commitment, companies can regain trust and successfully rebuild their brand image – Goldman Sachs is a prime example of this. With its “10,000 Small Businesses” initiative, which received extensive media coverage, the bank not only emphasized its social responsibility, but also strengthened its brand and tapped into new target groups. This initiative supports small businesses through training and access to networks and has gained worldwide recognition.
More about the Goldman Sachs initiative here: https://10ksbapply.com/
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PR as a means of differentiation in a competitive market
In the highly competitive financial industry, it is crucial to stand out from the competition. A strong PR strategy can help create a unique brand image that makes the company stand out in the eyes of the public. A good example of this is the British bank HSBC, whose sustainable initiatives and focus on ethical business practices set it apart from other banks. Among other things, HSBC has launched an extensive PR campaign for its global “Essence of Enterprise” study over the years to communicate its efforts in the area of social responsibility. This campaign has not only strengthened the bank’s image, but also increased customer and investor confidence in the company.
What makes the Essence of Enterprise? #HSBCReporthttps://t.co/adrCuncbXD
— HSBC (@HSBC) March 9, 2016
PR and social media: The digital transformation in the financial sector
Attention Newsflash: Social media plays a central role in the communication strategy of many companies today. Via platforms such as X, LinkedIn or Instagram, financial companies can communicate directly with their target groups, disseminate their messages and respond to feedback in real time. They can also reach a broader and more diverse target group and increase brand awareness. For example, the American investment bank Morgan Stanley uses social media not only to promote its financial products, but also to provide insights into its corporate culture and share its position on current economic issues. This, among other things, has helped the company to establish itself as a leading voice in the financial sector and strengthen its brand worldwide.
The role of PR in the long-term brand strategy
PR is not just a short-term tool for overcoming crises, but an essential part of a company’s long-term brand strategy. Continuous and consistent PR work helps to shape and consolidate the image over time. Financial companies that invest in their public relations can build their brand sustainably and secure their position in the market.
Conclusion: Trust as a foundation – PR as the basis for sustainable growth
Trust is (and remains) the be-all and end-all in the financial sector. A well-thought-out PR strategy can not only help to gain and maintain the public’s trust, but also strengthen a company’s reputation in the long term. Financial companies like HSBC, Goldman Sachs and others that rely on PR can stand out from the competition, manage crises better and build their brand sustainably. Nowadays, more than ever, public opinion determines success or failure. PR must therefore be more than just an optional extra – it is an essential part of any successful business strategy.
If you would like to know more on what is important in employer branding in the financial sector, check out our blogpost: Employer branding in the financial sector: new paths for banks in the war for talent
