Online reputation management for banking

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Online Reputation Management for Banking and Financial Services Companies is Critical to The Economic Health of The Country

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Online reputation management for banking

  1. 1. Reputation Management:Managing Global Banking Risk to Brand ReputationDavid Ewing, BrandGuard SoftwareMay 2013
  2. 2. Did you know? One negative review costs 30 customers per branded termPositive Brand ReputationThe most valuable brand asset …Neglected by financial institutions tothe economic cost of shareholdersand consumers
  3. 3. Banking ReputationCopyright © 2013 BrandGuardSoftware.com All rights reserved
  4. 4. Massive Banking & Shareholder Losses63,000 banking jobs to be lost in just eight Europeanbanks by 201312,000,000 US property foreclosures since 20093 million US business bankruptcies in 2009 -10Copyright © 2013 BrandGuardSoftware.com All rights reserved
  5. 5. Banks Have Been The Easy Blame…“I am determined toensure that we can lockin greater stability … inthis generation”(2006)“The IMF has justconfirmed ‘thecontinued resilienceof the global financialsystem’ ”(2007)“Retail banks appear tohave adequatefinancial resourcestoday”(2007)Copyright © 2013 BrandGuardSoftware.com All rights reserved
  6. 6. Several Areas Were Mismanaged“I am determined toensure that we can lockin greater stability … inthis generation”(2006)“Retail banks appear tohave adequatefinancial resourcestoday”(2007)Risk management was blind-sidedStrategic interests were abandonedValue evaporated on a catastrophic levelRisk management was caughtCopyright © 2013 BrandGuardSoftware.com All rights reserved
  7. 7. Copyright © 2013 BrandGuardSoftware.com All rights reservedHow Could Reputation Impact Strategy?
  8. 8. First, continued success needssupport from stakeholders
  9. 9. Copyright © 2013 BrandGuardSoftware.com All rights reservedSentiment towards banks- they’re only about making money.
  10. 10. Copyright © 2013 BrandGuardSoftware.com All rights reservedThe 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 ProtectionInsurance” to improve your loan“Arranging additional credit of upto $1 billion, which did not appear inGreeks economic data”“Creating and selling securities andthen betting against themLike selling shaving cream as a curefor baldness?Like encouraging an alcoholic to haveanother drink?Like quarterbacking the Dallas Cowboys,but betting on the Patriots winning?
  11. 11. Copyright © 2013 BrandGuardSoftware.com All rights reservedReputation Management Consideration?...MMM…Not Really
  12. 12. Copyright © 2013 BrandGuardSoftware.com All rights reservedReputation Views‘If you lose money, I will be understanding. If you lose reputation, I will be ruthless‘
  13. 13. Copyright © 2013 BrandGuardSoftware.com All rights reservedUnited Kingdom’s Leadership Discussing UK Insurance SpaceABI: Reputation [is] theindustry’s biggest weakness …make sure that we create anenvironment where ourreputation reflects our value toSociety and the economy.”
  14. 14. Copyright © 2013 BrandGuardSoftware.com All rights reserved2011 Edelman Trust Barometer reveals that a negative online reputationinhibits a financial institutions ability to position itselfStakeholders oftrusted companiesStakeholders ofdistrustedcompanies51%Believe positiveinformation afterhearingit once or twiceJust 15%Believe positiveinformation afterhearingonce or twice25%Believe negativeinformationBUT 57%Believe negativeinformation
  15. 15. Copyright © 2013 BrandGuardSoftware.com All rights reserved16 Academic Reports Support Reputation Management“We observe that the penalized firms’ stock prices experience statistically significantabnormal losses of approximately nine times the fines and compensation paidWe interpret the fall in equity market value in excessof mandated payments as the firms’ reputational loss ”Regulatory Sanctions and Reputational Damage in Financial MarketsJ Armour, C Mayer, A Polo, University of Oxford (March 2011)Based on sample of the entire population of regulatory enforcement actions bythe FSA and LSE against publicly-traded companies from 2001 – January 2011
  16. 16. Copyright © 2013 BrandGuardSoftware.com All rights reservedHere Is What One Financial Institution Did For SocietyFinancedPanamacanalFinanced1sttransatlanticcableFinanced1st supertankerFinanced1stjumbo jet1st creditcard1st savingsaccount withcompoundinterestProvidescash topaysalariesof NGOs
  17. 17. First Steps…Analyze Intersects BetweenReputation Management & StrategyCopyright © 2013 BrandGuardSoftware.com All rights reservedExecutionAnticipateThreatsLeverageOpportunitiesOfCorporateStrategy
  18. 18. Food & Beverage Industry ExampleCopyright © 2013 BrandGuardSoftware.com All rights reservedConfident as No: 1in a major globalindustryOne of key strategies:- Target customers young- Keep them for life
  19. 19. Conclusion: Focusing on online reputation managementmust become a core board-level functionCopyright © 2013 BrandGuardSoftware.com All rights reservedPositive Online ReputationStrategic Software ExecutionShareholder value is securedExterior Viewpoints
  20. 20. Steve Hester, CEO of Royal Bank of Scotland GroupCopyright © 2013 BrandGuardSoftware.com All rights reserved“Banks need to reconnect with Society– we cant do without banks - they arecentral to progress, enabling people,companies, communities to achievetheir ambitions”
  21. 21. Protect Your Financial Institution’s Online ReputationSchedule A Product Demo Today!Call (888) 565 -3690sales@brandguardsoftware.comwww.BrandGuardSoftware.com

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