Online reputation management for banking

Reputation Management:
Managing Global Banking Risk to Brand Reputation
David Ewing, BrandGuard Software
May 2013

Did you know? One negative review costs 30 customers per branded term
Positive Brand Reputation
The most valuable brand asset …
Neglected by financial institutions to
the economic cost of shareholders
and consumers

Banking Reputation
Copyright © 2013 BrandGuardSoftware.com All rights reserved

Massive Banking & Shareholder Losses
63,000 banking jobs to be lost in just eight European
banks by 2013
12,000,000 US property foreclosures since 2009
3 million US business bankruptcies in 2009 -10

Banks Have Been The Easy Blame…
“I am determined to
ensure that we can lock
in greater stability … in
this generation”
(2006)
“The IMF has just
confirmed ‘the
continued resilience
of the global financial
system’ ”
(2007)
“Retail banks appear to
have adequate
financial resources
today”
(2007)

Several Areas Were Mismanaged
“I am determined to
ensure that we can lock
in greater stability … in
this generation”
(2006)
“Retail banks appear to
have adequate
financial resources
today”
(2007)
Risk management was blind-sided
Strategic interests were abandoned
Value evaporated on a catastrophic level
Risk management was caught

How Could Reputation Impact Strategy?

First, continued success needs
support from stakeholders

Sentiment towards banks- they’re only about making money.

The Worst Decisions Had A Common Theme
“As long as the music is playing,
you’ve got to get up and dance”
Like selling houses in a flood plain,
because it’s been dry lately
“Take up Payment Protection
Insurance” to improve your loan
“Arranging additional credit of up
to $1 billion, which did not appear in
Greek's economic data”
“Creating and selling securities and
then betting against them
Like selling shaving cream as a cure
for baldness?
Like encouraging an alcoholic to have
another drink?
Like quarterbacking the Dallas Cowboys,
but betting on the Patriots winning?

Reputation Management Consideration?...MMM…Not Really

Reputation Views
‘If you lose money, I will be understanding. If you lose reputation, I will be ruthless‘

United Kingdom’s Leadership Discussing UK Insurance Space
ABI: Reputation [is] the
industry’s biggest weakness …
make sure that we create an
environment where our
reputation reflects our value to
Society and the economy.”

2011 Edelman Trust Barometer reveals that a negative online reputation
inhibits a financial institutions ability to position itself
Stakeholders of
trusted companies
Stakeholders of
distrusted
companies
51%
Believe positive
information after
hearing
it once or twice
Just 15%
Believe positive
information after
hearing
once or twice
25%
Believe negative
information
BUT 57%
Believe negative
information

16 Academic Reports Support Reputation Management
“We observe that the penalized firms’ stock prices experience statistically significant
abnormal losses of approximately nine times the fines and compensation paid
We interpret the fall in equity market value in excess
of mandated payments as the firms’ reputational loss ”
Regulatory Sanctions and Reputational Damage in Financial Markets
J Armour, C Mayer, A Polo, University of Oxford (March 2011)
Based on sample of the entire population of regulatory enforcement actions by
the FSA and LSE against publicly-traded companies from 2001 – January 2011

Here Is What One Financial Institution Did For Society
Financed
Panama
canal
Financed
1st
transatlantic
cable
Financed
1st super
tanker
Financed
1st
jumbo jet
1st credit
card
1st savings
account with
compound
interest
Provides
cash to
pay
salaries
of NGOs

First Steps…Analyze Intersects Between
Reputation Management & Strategy
Execution
Anticipate
Threats
Leverage
Opportunities
Of
Corporate
Strategy

Food & Beverage Industry Example
Confident as No: 1
in a major global
industry
One of key strategies:
- Target customers young
- Keep them for life

Conclusion: Focusing on online reputation management
must become a core board-level function
Positive Online Reputation
Strategic Software Execution
Shareholder value is secured
Exterior Viewpoints

Steve Hester, CEO of Royal Bank of Scotland Group
“Banks need to reconnect with Society
– we can't do without banks - they are
central to progress, enabling people,
companies, communities to achieve
their ambitions”

Protect Your Financial Institution’s Online Reputation
Schedule A Product Demo Today!
Call (888) 565 -3690
sales@brandguardsoftware.com
www.BrandGuardSoftware.com

Online reputation management for banking

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