Drop the emotion – banks must first communicate how they are fixing their problems
Forget ‘celebrating Australians’ and convincing customers there’s more than to life than money. The banks have a serious clean up on their hands, and talking plainly about how they’re intending to do that is the first step, writes Reputation Edge’s Patrick Southam.
As I was following media coverage of the Hayne Royal Commission into Misconduct in Banking and Financial Services this week, I couldn’t help but recall my own experience working for two of the big four banks in senior corporate affairs roles.
During my time as head of corporate affairs for a major retail bank I was referred to a senior financial adviser who prepared a financial plan for my wife and I. In a nutshell, this planner recommended we transfer our super into the bank-owned wealth management business, and take out a big loan against our home to buy negatively geared shares. We didn’t follow his advice.
During a media training workshop I ran at another bank for senior executives, the timing of passing on Reserve Bank interest rate reductions to customers was discussed. In those days all the banks routinely delayed passing on rate cuts for up to 30 days, but they immediately passed on rate increases. The banks knew their customers and the media hated this behaviour, but they did it anyway.
But are customers actually leaving? And aren’t their share prices up since the findings were published?
Field & Binet have proven the most effective path to building brands is through emotional advertising, not rational. This article feels a little short sighted. The smart banks will go harder, not softer on the emotion.
But as banks know that customers are very sticky, why would they embark on a ‘long and painful journey back to absolution’?
The sound of the banks wailing as they get lashed with a wet feather is heartbreaking.
This is the very time for “feel good” advertising. Its the banks’ agencies job to determine what will actually make people feel good . Try a classy apology. Strapline “Can we start again?” What am I saying? They’re all just gonna duck for cover till it all blows over. You don’t apologise to someone you’ve got by the balls