Whether it’s conducting internal messaging or reaching out to customers and the public at large, communication is a huge issue. One slip up and you could have some major public relations problems on your hand. On the other hand, one great communication strategy can boost your company’s image.
In the banking industry, messaging is at an all-time high in terms of importance. After federal watchdogs began cracking down on unlawful acts by financial institutions in the last decade, banks have been changing the way they serve their customers and learning from their mistakes. This is being pursued through effective communication strategies in banks, both internally and externally.
Here are some best practices and those to avoid when it comes to communication in banking.
Integrate Internal Comms with External
Companies should aim to communicate to their employees about big changes first and help them understand the personal impact of any change while also providing context. This will help build a culture that is open, transparent, and encouraging, and can help to translate the information externally. Internal changes are of interest to employees’ families and friends as well as customers and prospective employees.
Take Advantage of Social Media
There are so many different ways in which content and messaging of any kind can be shared to the outside world. From social media to sites like LinkedIn, messaging can be delivered effectively and engagingly. Plus, a site like LinkedIn can also be a great tool to recruit new employees, acting as a two-tiered communication plan. When it comes to sites like Facebook and Instagram, banks can include tech-savvy ways to get their direct messages out to the world at no cost. Utilizing these apps creates an engaging opportunity to update your customers and encourages and interactive approach to everything from messaging to feedback.
Communication Missteps to Avoid
Not Addressing Liabilities
Banks have been in the public eye in the last decade, as mentioned above, when it comes to legal issues. From creating fake accounts for customers to including secret charges to others, banks have had to repair their public image. One way this can be avoided is to take care of liabilities and risks through bankers professional liability insurance. This coverage can be beneficial in a number of ways including financially protecting banks when it comes to paying for representation or paying back customers. A bankers professional liability insurance plan is a comprehensive way to be responsible when having to deal with difficult situations, which all companies face at one point or another.
One-Size-Fits-All
When you try to communicate with a number of people, it may be instantly apparent that some people understand what you’re trying to say right away and that others may need some more context. Not everyone understands messaging the same way, so consider including a range of learning styles of those you’re trying to communicate with and plan a strategy that addresses them all.
Lacking Attention to Tone
One major mistake banks can make following an issue with their customers is to not understand what kind of tone they are using, even through print or online form. An edgy tone following feedback from the public can be caught easily and can hurt your bank’s chance of keeping a situation under control. Tone is important at any time, but most importantly during a time of crisis.
Not Taking Care of Difficult Conversations
Facing the public following a mistake can only make matters worse. Every company will face conflict at one point or another, but avoiding it altogether will not make it go away. Banks should not shy away from owning up to something they’re responsible for and plan for and carry out a conversation with clients and customers by providing clear and actionable feedback.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.