3 Key Messages Financial Companies Must Convey To Build Trust And Investor Confidence

Good and bad news affect the stock market and public perception of the financial industry and its players. Unfortunately, as the bad news has recently prevailed, with banks collapsing, national currencies crashing, and interest rates rising due to high inflation, we observe a trust crisis. No wonder only 10% of Americans have a “great deal” of confidence in “banking and financial institutions.”

These turbulent events of 2022-2023 have underscored the fragility of the global financial ecosystem and the potent ripple effect it can unleash. Institutions contagiously crumbled, reminiscent of the FTX incident, leaving trust in financial entities seriously compromised. In such a climate, financial companies must diligently convey three pivotal values to the public: transparency, reliability, and compliance.

To communicate these values, companies have to choose appropriate tools, and among them, PR emerges as an effective avenue. Here is how PR can assist financial firms in broadcasting three core values of the financial world:

1. Showcase Transparency By Cultivating Media Relations

Drawing upon my extensive experience as a PR consultant, I consistently advise my clients to make open company data as accessible to a wide audience as possible. In PR, we actively distribute press releases detailing the organization's regular reports, both quarterly and annually. These materials highlight key achievements and challenges faced by the leadership team, along with risk management strategies and corporate governance. It's crucial to take this message to the media space and present, often visually, the core performance indicators of your financial organization.

In addition to keeping investors informed about company performance, engaging with financial journalists and providing them with accurate and up-to-date information about your organization fosters a culture of openness in the financial field.

2. Demonstrate Reliability With Strong B2B Connections

In the financial sector, in addition to transparency, showcasing reliability to investors and stakeholders is essential. One of the most effective ways to establish trust in the eyes of investors is through strategic partnerships with industry leaders to enhance solid business-to-business relationships. Such messages are particularly compelling in conveying a brand's strength.

However, forming partnerships isn't enough; it's equally vital to share this information widely, providing clear descriptions of “who, what, where, when, and why” these partnerships entail. Moreover, through PR tools, companies have the opportunity to convey to stakeholders the measures in place to safeguard their funds. Fintech platforms, for instance, often adopt this approach when discussing their security practices and partnerships to strengthen them. 

Financial brands can use social networks, company blogs, and targeted media publications to communicate steps taken to outline their path forward, along with innovative solutions they've adopted.

3. Share Your Compliance Strategies With Regulators To Foster Better Relationships

How do organizations demonstrate that a financial company is compliant and works by the books? Building relationships with regulators is a key step in achieving this goal. This often involves tailoring the narrative to suit very domestic regulatory landscapes.

For instance, fintech and crypto industries are regulated differently in each country, as evidenced by Revolut's recent suspension of all US crypto access due to regulatory constraints. To showcase your company’s commitment to compliance, it's vital to not only deliver expert publications—opinions and in-depth interviews—with niche journalists to address the general public but also proactively engage with regulators to demonstrate your readiness to cooperate.

Power Of A Resilient Brand In Crisis

As we can see, the world of finance is inherently fragile and susceptible to macroeconomic events. In such an environment, financial organizations must keep the three pillars of values and PR tools described above at the forefront of their communication strategies. 

Even during periods of market stability, these messages must be consistently promoted in the media space. This proactive approach not only builds trust in the financial market and your company but also ensures that in times of crisis, you already have a strong brand, and your anti-crisis strategies can mitigate negative impacts swiftly and with minimal losses.