Banks need public relations because it’s often surprisingly difficult to communicate what exactly they do – and why they do it better than their competitors. Effective PR for banks is essential to address the complexity of financial services and clarify their unique value to customers.
The Challenge of Communicating Financial Services
At a basic level, people understand that banks take deposits and use those funds to make investments that generate income for the institution. However, beneath this simple explanation lies a complicated network of specialized departments, each with unique goals. For example, the needs of the treasury services team differ greatly from those of the consumer loans division. Public relations is essential for explaining these complex structures and the benefits they provide to various customer segments.
How PR for Banks Builds Trust and Credibility
Public relations in banking is not merely another form of marketing designed to promote products. Instead, it is a strategic process that aims to create a cohesive narrative about the bank’s expertise, reliability, and commitment to its clients. A well-crafted public relations strategy helps banks build trust and strengthen their relationships with the public. Here’s why PR is critical for financial services:
- Differentiates the Brand: In a competitive market, PR for banks helps create a unique brand identity by showcasing what the bank does differently.
- Builds Authority and Expertise: A strong PR strategy positions a bank as a knowledgeable leader in financial services, increasing public confidence.
- Fosters Trust through Media: Customers seek information through trusted media sources, not just advertisements, which is why banks need PR to establish credibility through respected outlets.
Moving Beyond Marketing: What Makes PR Different for Banks
It’s a common misconception that public relations is simply another branch of marketing focused on self-promotion and driving sales. In reality, effective PR is about building trust and communicating the bank’s role in the financial services industry in a way that resonates with audiences. To understand a bank’s value, audiences need information that comes through trusted media sources and respected journalists—not just promotional content. This is where PR plays a vital role, offering content that is credible and informative, which audiences value more than standard ads.
Building a Trustworthy Financial Brand Takes Time
The process of building a trustworthy brand in financial services is gradual, built over months, years, or even decades. It requires consistent, strategic PR efforts. While each individual PR campaign may seem small or technical, together, they build a bank’s reputation. When done well, PR ensures that even the average person can recognize a bank’s strengths and what sets it apart. Just as people associate Apple with quality, user-centred products, effective PR for banks helps establish clear, positive perceptions that define the brand as trustworthy and useful stewards of their precious cash.
For banks, growing their media presence and engagement is crucial to driving awareness. Ads on the Tube can start that process, but it can’t be the end of it. More is needed: Television appearances, forcefully argued opinion pieces, written Q&As. Consistent communication reinforces banks’ presence over the long term.
An example of a new financial brand
In the United Kingdom, we have the example of Nationwide, who rebranded last year with a witty launch film starring The Crown actor Dominic West. The adverts were ubiquitous – clearly an eight-figure campaign – and put the name on people’s lips.
That was Phase I. Then comes the role of public relations. The agency’s work (not Cognito in this case) was to show the 18-to-24-year-old customers that Nationwide had more than an endorsement deal with a rakishly charming actor. It is designed to solve real challenges to provide an in-person banking experience at a time when thousands of banks are closing on High Streets throughout the country. In print, spokespeople can speak about how they designed the app, how it was informed by customer research and why it makes sense for a modern audience.
Beyond stories about Nationwide, their spokespeople can speak about the needs of the Gen Z account holder, weigh in on the merits of regulation and compare Britain’s banking system to our former compatriots in the European Union. Each of these conversations is designed to be read and have people thinking – sometimes even unconsciously – “These people understand me and have created something that I want to be part of”.
Public relations can provide assurance that banks are working in line with broadening expectations around social issues. Media releases and owned channel posts prove institutions care about Corporate Social Responsibility. They inform audiences of their sustainability efforts or support for local economic initiatives – all of which matter.
A long-term relationship
This promotes understanding banks’ key values and engagement across their future plans and contributions to the broader ecosystem. Public relations can enhance banks’ transparency, which is attractive to investors and stakeholders and can drive growth.
PR strategies need to be actionable and personality-driven: we need to put a face to a name. Thought leadership can situate a bank’s key figures in the industry by offering insightful commentary and research on financial trends. Podcasts are an increasingly common place for people to speak on trends in banking. The informal nature of the medium is perfect for topical, transparent dialogue.
Public relations can set out a path to show where a business is planning to go. It’s a place to show how today’s product release or new app feature is part of a grand strategy journey, the ability to grow with their audience. They build a bank’s voice.
We at Cognito are proud to have worked with many banks over the past two decades, from regional lending societies, community banks and credit unions to some of the world’s largest banks focused on institutional customers.
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