Lessons of the Financial Crisis: Why PR Can Make or Break a Career in Finance

BinnaKimContributed by Binna Kim, Vice President, Cognito

There are many lessons to be learned from the 2008 financial crisis. With the emergence of game-changing regulations, such as Dodd-Frank in the US and EMIR in Europe, transparency has become the top priority for the financial services industry, whether operationally or financially. But what about transparency in communications? One unintentional fallout from the crisis and following recession was that we learnt an important lesson – that a good communications program provides invaluable air cover for any situation (and that a bad communications program can cause serious damage, as evident by the bank-bashing firestorm that took place over the last three years).

During the financial crisis, very few financial CEOs and executives stood up with a positive or empathetic message to share with their clients and the greater population.

How PR Can Help

I have engaged in more than a few conversations with executives who think that public relations is all “flash and fluff.” Oftentimes, execs believe that PR is inessential to business success especially in B2B financial services.

PR and marketing, while typically under the same umbrella and budget, are strikingly separate functions with drastically different results. For instance, marketing produces company-sponsored content that gets delivered directly to the end user, whereas PR is a way of using an objective moderator (the media) to communicate those messages to a target audience.

When used properly, PR is a very effective tool that can support a firm’s business strategy. A good PR program from day one is designed to sustain a specific key push or sales initiative. In a world of options, there is nothing more valuable than third party validation, which should be the end goal of any strong PR campaign.

I think particularly right now, there are different perceptions of financial services firms, both positive and negative, and a solid communications strategy is certainly one way of changing or maintaining an existing impression. Now more than ever, when a firm’s livelihood is at stake, it is important that they use the media as an advocate and as a channel to better educate Main Street about the financial services industry.

Best Practices

Naturally there is no “one size fits all” PR program and every firm’s strategy should focus on specific business needs. However, there are certain program elements which can be highly impactful for any size firm. Firms should consider the following:

  • Engage in thought leadership. Channels such as blogs, whitepapers, Webinars and events can be effective methods for engaging your audience even if you’re a small firm. Thought leadership can help you punch above your weight and move up the value chain, from being just a service provider to a true consultant.
  • Be patient. PR takes time to see results and you have to be willing to engage for the long-term.
  • Approach media relationships as partnerships. Make an effort to establish a rapport with the media which in turn can create loyalty, credibility and respect. Knowing and understanding a journalist’s end goal (reporting the news) can help both parties reach a meaningful result.
  • Understand the end game. When considering PR think about what you want the program to achieve for you. Any company or executive has to understand that PR cannot operate in a vacuum. It’s not a substitute for customer service or direct sales and it works best when you track objectives and integrate it into a broader business development strategy.

As a Female Executive on Wall Street, What is My Opportunity?

Right now, there is a real opportunity for female financial executives to make a name for themselves in the broader business media. I personally think that women in this industry should be more actively demonstrating their expertise in financial services as a way to not just break, but shatter the remains of the glass ceiling.

Wall Street has the quintessential problem of a bad reputation and the right female executive has the opportunity to emerge as a new voice for the industry. However, regardless of gender, financial executives have an opportunity to leverage PR and marketing, to effect change – whether in business strategy, industry perception of the financial services, or even as part of a personal career. We need to build up positive brand associations with financial services professionals in a way that will help, not harm, the industry.

Binna Kim is a Vice President and manages both PR & Marketing accounts at Cognito in New York. Binna has worked on numerous financial and financial technology clients on integrated PR and marketing initiatives, including firms such as Calypso, DTCC, Intel and Nomura Research Institute. She has headed up a range of creative initiatives including strategy and branding, messaging, media relations, and thought leadership campaigns. Prior to joining Cognito, Binna worked in Marketing at Merrill Lynch Investment Management. Binna holds a BA in English from Wellesley, a world renowned women’s liberal-arts college.

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