Companies have historically preferred to stay out of politics or any other divisive public debate. Come to think of it, what legitimacy would a toothpaste brand, for example, have to comment on a geopolitical conflict, a vote or the overly gendered vocabulary of a public figure? Sherif Mamdouh writes in his article for finews.first.
This article has been published on finews.first, a forum for authors specializing in economic and financial topics.
A 2018 study showed that 64 percent of consumers worldwide buy or boycott a product based on values alone, and the trend is rising. So we need to position ourselves, on everything and fast. As columnist Kian Bakghtiari writes in «Forbes», the term «boycott», which until recently was reserved for a radical fringe of the population, is now the prerogative of the average consumer who demands that products and services conform to their opinions.
Like Switzerland, which was recently pressured out of its silence to impose sanctions on Russia, companies are now forced to take a stance on a large number of issues, a kind of ethical and moral examination to which they must constantly submit themselves to remain worthy of their consumers.
«In the age of powerful social networks, the vehemence of criticism can be fatal to a reputation»
The Swiss financial industry is therefore finding itself in quite the conundrum. Known worldwide for its (dare I say boring) discretion, and struggling to renew its value proposition in an increasingly homogenous global financial industry, its actors must now take stands and speak up… As long as they don’t offend any of their potential client base, say anything that could be interpreted as a solicitation or a recommendation, or bruise the ego of a stakeholder.
But, is there any room left for creativity in financial communication? In the age of powerful social networks, the vehemence of criticism can be fatal to a reputation, and a Finma crackdown very costly, so how to stand out and create brand value?
The rise of cancel culture, a kind of social self-justice based on ranting, as described by the reputation intelligence specialist LaFrenchCom, is probably at the center of this puzzle (given the regulatory imperatives are respected). It's a phenomenal tool for social progress, but it comes with its own set of unfortunate side effects. What brand would still dare to create a campaign in the spirit of «United Colors of Benetton», and its human rainbows?
«Why does it all feel too bland?»
The first question that would probably come to an art director's mind is «who did we forget?» for fear of getting into big trouble or being accused of discrimination – even though the underlying message of the campaign is diametrically opposed to this criticism. Yet, thirty years later, everyone still recognizes the Benetton brand and associates it with values of diversity and inclusion. It was daring, sincere, different and claimed as such. Everything you need for a strong and lasting brand identity.
Ok, obviously we can’t expect a Swiss bank or asset manager to go that far. Benetton was selling an experience to a generation of kids who sang «Winds of Change» as the Berlin wall collapsed and cheered on as Nelson Mandela was awarded the Nobel peace prize. Different times, different stakes. So what should be the focus of communication for financial institutions? Why does it all feel too bland?
«ESG itself, it is clearly no longer a brand differentiator»
For the past decade, we have seen a growing interest in ESG-centered communication. Rallying behind a greened future seemed straightforward enough and a sure win with the audiences. However, the rush towards eco-friendliness became so out of control that there was an industry-wide lack of critical thinking. Many focused on the packaging and forgot that the devil is in the detail. And we are now witnessing the backlash of this, having lost a lot of credibility, with greenwashing becoming yet another pitfall. As for ESG itself, it is clearly no longer a brand differentiator.
According to Jennifer Aubrecht, Head of Marketing and Communications at Atlantic Financial Group, «most brands in the financial industry look and feel the same. Because of the regulatory restrictions and the reputational deficit the industry has suffered from, it has become an industry of consensus where most actors would rather be wrong and remain with the herd, than to take a risk and be bold enough to develop and capitalize on a set of differentiators».
«This doesn’t require pharaonic projects»
The financial industry’s selling proposition boils down to two things: trust and knowledge. As such, it goes without saying that one of the most important axes of communication is the production, distribution and promotion of thought leadership. There is no fancy branding in the world that can ever replace the value of a trusted and proven advisor.
Knowing the media landscape, and supporting an environment of high-quality information that allows for critical thinking and knowledge sharing is an absolute must. This doesn’t require grand schemes and pharaonic projects. Only the capacity to become a preferred source of information for the leading media outlets by always being transparent, timely and respectful of their journalistic mandate.
Once your brand is trusted and your knowledge established, make sure to have some fun…
«It is not a question of brand identity, but rather of the corporate culture»
An interesting postulate is to accept the societal change that has given rise to the so-called cancel culture and to try to define oneself in this new context. Because at the end of the day, one’s own opinion of this phenomenon is irrelevant and will not make it disappear.
It is therefore a deeper question than the communication strategy that arises. It is not a question of brand identity, but rather of the corporate culture. Once identified and clearly defined, the latter will give a clear perimeter within which communication can then express itself in all its creativity. The guiding principle becomes conformity to one's own values and beliefs, rather than to the expectations of others.
Finally, defining one's values, establishing a recruitment strategy in accordance with these values and accepting the fact that one will never please everyone, all the time, seems to be the pragmatic starting point for any financial institution that seeks to exist in a confident, sincere and sustainable manner. Our legitimacy is earned by our consistency with our own values, not by our ability to quickly hop on a bandwagon out of fear.
Sherif Mamdouh has been an independent communications consultant since August of this year. Previously, he worked in various management positions in the hotel industry, in particular at the Ecole hôtelière de Lausanne, as well as in the financial sector, namely at HSBC Private Bank, Citigroup and most recently at the Geneva-based private bank Syz.
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