Financial Services and Reputation: The next five years

Financial Services and Reputation The next five years

Tony Langham Chief Executive Lansons

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Industry reputation

Airline Automotive Banking Education Energy Government

Healthcare Insurance services Investments Legal services Manufacturing Payment services

Pensions Retail Technology Telecommunications Travel and tourism Tobacco Source: Opinium Research for Lansons

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Good reputation

+64% Technology +46% Travel and tourism +42% Manufacturing +35% Retail +35% Automotive

+29% Payment services +26% Education +21% Airline +21% Healthcare +19% Telecommunications +4% Legal services Source: Opinium Research for Lansons Source: Opinium Research for Lansons

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Bad reputation

-16% Insurance services -16% Pensions -24% Investments

-29% Energy -32% Government -36% Banking -53% Tobacco

Source: Opinium Research for Lansons

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We still have a reputation problem Trust Do not trust Net trust

Payment services 46% 15% +31%

Banking 31% 36% -5%

Pensions 27% 33% -6%

Insurance services 25% 36% -11%

Investments 17% 40% -23%

Source: Opinium Research for Lansons

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Zitah McMillan, former Director of Communications and International, FCA

Reputation isn’t a communication issue

PRCA: Economics of Reputation project

“You can’t talk your way

out of something you behaved yourself into”

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Impact of reputation

Source: In-house Communication Directors (YouGov for PRCA)

56% 45% 33% 29% 25%

Staff recruitment and retention

Media coverage

Influence on Government

Credibility with stakeholders

Marketing effectiveness

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Looking externally

The next five years

Looking internally

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Culture and behaviour

“If you ain’t cheating, you ain’t trying”

Record fines for currency market fix

20 May 2015 | Business

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Are we shocked ?



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Are we shocked ?

Forex continued after LIBOR known, both continued after CEO pledges that change had happened



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Martin Wheatley, Chief Executive, FCA

FCA on cultural change

“T here are serious concerns that recovery

will drown out culture change.”

March 2014

"T his is an industry that remains in the foothills of cultural reform.”

November 2014

“Fines are working…but,

for us to drive change through the culture of the organisation,

that is a work-in-progress.” May 2015

“What is needed is a culture that induces bankers to do the right thing, even if nobody is

watching.”

Christine Lagarde, IMF

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Energise and mobilise the workforce

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Britain at Work Major partnership between Lansons and Opinium Research

of employees say they understand their company’s purpose and

objectives

85% © L

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Britain at Work Major partnership between Lansons and Opinium Research

of employees say they understand their company’s purpose and

objectives

85% 46% of British employees think their own pay is fair

28% think their company bosses pay is fair BUT

ONLY…

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Looking externally

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The rhetoric may change a little “Bank

bashing is something we’ve got to move on

from” Mark Garnier, MP and

TSC Member

Tory MPs demand end to banker bashing: Bank levy debate hots up after historic Conservative election victory

20 May 2015 | Politics

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The agenda is unlikely to change

Cost of living

Housing

Devolution

Economy

Education

Inequality

Europe

Executive pay

Anti tax-avoidance

Consumer protection

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President Barack Obama, May 2015

Hedge funds " T he top 25 hedge fund managers made more than all the kindergarten teachers in the

country. T hey are society's lottery

winners.”

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Hedge funds Industry response:

"I do not recall ever hearing of a kindergarten teacher being fired for poor performance." “Instead of the Jews, it’s the hedge fund managers” “Class warfare” “You could say the same of the top 25 athletes”

“We’re more concerned about the Hamptons’ season” “Did anyone even notice ?”

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“a leading international asset manager”

“one of the world's largest banking and financial services organisations”

“lends, invests and protects money”

“provides costumers with insurance, savings and investments products”

We currently explain what we do

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We need to explain what we do for society

Protect people

Fund retirement

Help businesses

Power the economy

Provide personal and economic stability

Provide capital for growth

Make home ownership affordable

Help manage risk

Fund infrastructure

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Connect with consumers

Instant skills Post-demographic consumerism

Fast-laning

Fair splitting

Internet of shared things

Branded government

Currencies of change

Sympathetic pricing Robolove

Brand stands

E@sy street Toxic avengers

Get smart

Fight for your rights

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Take the opportunity Demographics in our favour

Regulation protects us from competition from

Apple and Google (to an extent)

Innovation is required, and disruptors can often be bought

There should be helpful debate on the

political right

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Take the opportunity

But we still need to change our behaviour and our engagement to earn a better reputation

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Financial Services and Reputation: The next five years

Presentations & Public Speaking

Transcript of Financial Services and Reputation: The next five years