77% of Companies Report Financial Industry Risk is
This is a major finding of the 2014 Makovsky Wall Street Reputation Study, designed to determine the state of reputation of the financial industry and identify best practices and emerging trends. This third annual study was conducted by Ebiquity in
The study showed that financial services firms continue to be pummeled by negative perception and regulatory overhaul and action, with the biggest drags on company reputation being negative public perception (64%) of the financial services industry and regulatory actions (55%) including investigations, lawsuits and fines.
New regulations spun off from the Dodd-Frank Act, which Congress passed four years ago to overhaul the financial system after the financial crisis, are considered a bitter medicine by marketing and communications executives, with 78% believing they will help restore trust faster. However, 80% of the same executives also report that the investigations, lawsuits and fines that accompany the new rules have cast a dark shadow on their companies in the past 12 months.
“The 2014 study findings question how far financial services brands have advanced since the financial crisis,” said
Financial marketing and communications executives report that new regulations put in place after the financial crisis have wreaked havoc on corporate image, operations and performance:
Other potent and emerging issues also threaten to complicate the rebuilding of corporate reputation:
“The path to reputation recovery is still rough and riddled with issues to overcome. This environment is complex and is testing the ability of marketing and communications executives to develop strategic programs that perform,” said Tangney. “Most executives are in a state of angst when it comes to the current standing of
When asked “which of the following do you believe best characterizes the current reputation of the financial services industry”, executives responded:
More big changes, regulations and shakeout to come–
Not out of the woods –
High risk – another crisis in the wings –
We are under fire from regulators –
Not sure – the industry is changing too much –
Back to normal –
Better than pre-financial crisis –
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