Reputational challenges for a 21st century financial services industry

by Alicia Buckley, Consultant MadlinHanna Consulting

Financial services has undergone a major transformation over the course of the last generation and these changes will only continue to escalate as technology levels the playing field. The reputational challenges are varied and constantly evolving. We see this reflected in the way that communications agencies with a financial services client base have been hiring since the summer. There is significant competition for talent in this sector as the demands increase. But what is the emphasis of the briefs?

Trust

Alternative finance needs to do a lot to build the same the trust that the big banks currently hold. They are unknown and it is the fear of the unknown that reduces consumer engagement with them. They do, however, present real contrast to their larger counterparts. Often they are more engaged with sustainability and whilst big banks will struggle to make a commitment not to invest in any fossil fuels, lots of smaller or newer banks will be able to make those assurances. In an age of flexibility, the fact that many of these businesses provide support 24/7 will also add huge appeal.

De-mystifying

How many people have very limited understanding of their pension, or what the best savings account to use is or even how to go about applying for a mortgage? The sector has been working with a consumer that often has limited understanding. The way an individual can manage their finances is really changing. For example, Wagestream will release people's wages when they want them. This is something not just relevant to those in the gig economy. But those trying to save.

International

The world is getting smaller and there is an argument to be made about more broad regulation. Linked to the issue of trust, Germany have been the first to regulate cryptocurrencies whereas China have banned cryptocurrency mining because of their issue with the lack of tracking. Online fraud is now cross-border so there has to be collaboration between countries as well as the different players to protect themselves and people against fraud.

Talent

So what talent do we require to take on these issues. In the main, candidates are still coming from financial services backgrounds but we are starting to see more movement from those who have generalist big brand experience to work on clients with ambitions to get to that scale. Their experience across more "corpsumer" work is also really appealing. Many of these fast-growth firms will plan to list at some stage so there will need to a blend of financial communications in teams to be ready for that.

Please do reach out if you’d like to understand what your opportunities may look like.

MadlinHanna Consulting is a recruitment consultancy specialising in corporate affairs, covering public affairs, corporate communications and financial PR. Contact us on 020 8088 4102 for more information or a confidential conversation about these services and more.