While there are a lot of things that banks need to do to get back on track profitability-wise, there are three “things” banks need to improve in order to (re-?)gain their credibility with consumers:
- Transparency. If the CEO of your company goes on TV (say, Jim Cramer’s show) and tells the world the future of your firm looks bright, and then two days later, other banks are picking at you like vultures on roadkill, then your firm is not transparent. Consumers (not to mention investors) are sick and tired of this crap. Come clean about your financial situation. And come clean about your product quality. And your fees. Be transparent. We know the difference.
- Tangibility. The Financial Brand blog recently highlighted the branding efforts of one bank, who’s running a series of ads showing someone (as Jeffry Pilcher writes) “wrestling — literally — with some aspect of their financial life: a wallet, purse, or checkbook. The only blurb of copy — the headline — says ‘Take control of your finances.” Pardon my french, but what the hell does that mean? Exactly what, Mr. or Ms. Banker, are you proposing to DO to actually help us “take control”? Aspirational messages are nice, but at some point (uh, sooner rather than later), banks need to be a lot more tangible about delivering on this stuff.
- Competency. Pretty soon, I’m going to get a call from my account manager at my bank, asking me to talk with an adviser from the investment firm that they recently acquired. (This could be any number of banks). My response is going to be “you want me to talk to an adviser from a firm that did such a *great* job managing its own money that it nearly went out of business before you guys scooped them up for 10% of the value they were worth a year earlier?” (This could be any number of investment firms). A bank branch rep I spoke to recently couldn’t even answer basic questions about the changes in FDIC coverage. My point: To improve their reputations, banks (and other FIs) are going to have to re-prove their basic competency regarding financial matters.
The reason I refer to these things as “things” is that I don’t know what else to call them. Measures? Perceptions?
Problem is, I don’t think any bank tracks these “things” today, so how will they really know if they’re improving on them?
Maybe the brand index methodologies out there will tell them. Not likely.
Fixing these “things” isn’t going to come from external measurement. It will happen because the management team will take control of the situation, make fixing their reputation a priority, and do something about it.