Financial Services and Reputation: The next five years Presentation by Tony Langham, Chief Executive of Lansons at the Future of Financial Services Conference on 2 June 2015. http://futureoffinancialservices.co.uk/ www.lansons.com

1. Financial Services
and Reputation
The next five years
Tony Langham
Chief Executive
Lansons
©Lansons

2. Industry reputation
Airline
Automotive
Banking
Education
Energy
Government
Healthcare
Insurance services
Investments
Legal services
Manufacturing
Payment services
Pensions
Retail
Technology
Telecommunications
Travel and tourism
Tobacco
Source:Opinium Research for Lansons
©Lansons

3. Good reputation
+64% Technology
+46% Travel and
tourism
+42% Manufacturing
+35% Retail
+35% Automotive
+29% Payment services
+26% Education
+21% Airline
+21% Healthcare
+19% Telecommunications
+4% Legal services
Source: Opinium Research for LansonsSource:Opinium Research for Lansons
©Lansons

4. Bad reputation
-16% Insurance
services
-16% Pensions
-24% Investments
-29% Energy
-32% Government
-36% Banking
-53% Tobacco
Source:Opinium Research for Lansons
©Lansons

5. We still have a reputation problem
Trust Do not trust Net trust
Payment services 46% 15% +31%
Banking 31% 36% -5%
Pensions 27% 33% -6%
Insurance services 25% 36% -11%
Investments 17% 40% -23%
Source:Opinium Research for Lansons
©Lansons

6. Zitah McMillan,
former Director of
Communications
and International, FCA
Reputation isn’t a
communication issue
PRCA:Economics of Reputation project
“You can’t
talk your way
out of something
you behaved
yourself into”
©Lansons

7. Impact of reputation
Source: In-house Communication Directors (YouGov for PRCA)
56% 45% 33% 29% 25%
Staff recruitment
and retention
Media
coverage
Influence on
Government
Credibility with
stakeholders
Marketing
effectiveness
©Lansons

8. Looking
externally
The next
five years
Looking
internally
©Lansons

9. Culture
and behaviour
“If you ain’t cheating,
you ain’t trying”
Record fines for
currency market fix
20 May 2015 | Business
©Lansons

10. Culture
and behaviour
“If you ain’t cheating,
you ain’t trying”
Are we shocked ?
Record fines for
currency market fix
20 May 2015 | Business
©Lansons

11. Culture
and behaviour
“If you ain’t cheating,
you ain’t trying”
Are we shocked ?
Forex continued after LIBOR known,
both continued after CEO pledges
that change had happened
Record fines for
currency market fix
20 May 2015 | Business
©Lansons

12. Martin Wheatley,
Chief Executive,
FCA
FCA on
cultural change
“There are serious
concerns that recovery
will drown out
culture change.”
March 2014
"This is an industry that remains
in the foothills of cultural reform.”
November 2014
“Fines are working…but,
for us to drive change through
the culture of the organisation,
that is a work-in-progress.”
May 2015
“What is needed is
a culture that induces
bankers to do the right
thing, even if nobody is
watching.”
Christine Lagarde,
IMF
©Lansons

13. Energise and
mobilise the workforce
©Lansons

14. Britain atWork
Major partnership between Lansons and Opinium Research
of employees say they understand
their company’s purpose and
objectives
85%
©Lansons

15. Britain atWork
Major partnership between Lansons and Opinium Research
of employees say they understand
their company’s purpose and
objectives
85% 46%
of British employees think
their own pay is fair
28%
think their company
bosses pay is fairBUT
ONLY…
©Lansons

16. Looking externally
©Lansons

17. The rhetoric
may change a little “Bank
bashing is
something
we’ve got
to move on
from”Mark Garnier,
MP and
TSC Member
Tory MPs demand end to banker bashing:
Bank levy debate hots up after historic
Conservative election victory
20 May 2015 | Politics
©Lansons

18. The agenda is unlikely to change
Cost
of living
Housing
Devolution
Economy
Education
Inequality
Europe
Executive
pay
Anti
tax-avoidance
Consumer
protection
©Lansons

19. The task for financial
services is to constructively
engage with society’s issues
©Lansons

20. President Barack Obama,
May 2015
Hedge funds"The top 25
hedge fund managers
made more than all
the kindergarten
teachers in the
country. They are
society's lottery
winners.”
©Lansons

21. Hedge funds
Industry response:
"I do not recall ever hearing of a kindergarten teacher being fired
for poor performance."
“Instead of the Jews, it’s the hedge fund managers”
“Class warfare”
“You could say the same of the top 25 athletes”
“We’re more concerned about the Hamptons’ season”
“Did anyone even notice ?”
©Lansons

22. “a leading international asset manager”
“one of the world's largest banking and financial services organisations”
“lends,invests and protects money”
“provides costumers with insurance,savings and investments products”
We currently explain what we do
©Lansons

23. We need to explain what we do
for society
Protect people
Fund retirement
Help businesses
Power the economy
Provide personal and
economic stability
Provide capital
for growth
Make home
ownership affordable
Help manage risk
Fund infrastructure
©Lansons

24. Asset management industry
under pressure
©Lansons

25. Connect with
consumers
Instant skills Post-demographic consumerismFast-laning
Fair splitting
Internet of shared things
Branded government
Currencies of change
Sympathetic pricingRobolove
Brand stands
E@sy streetToxic avengers
Get smart
Fight for your rights
©Lansons

26. Take the opportunity
Demographics
in our favour
Regulation protects
us from competition from
Apple and Google
(to an extent)
Innovation is required,
and disruptors can
often be bought
There should be
helpful debate on the
political right
©Lansons

27. Take the opportunity
But we still need
to change our
behaviour and our
engagement to earn
a better reputation
©Lansons