‘Nightmare on Wall Street’ Means Tough Times for Financial Services Brands

September 22, 2008 by anne

Financial services brands have a lot of rebuilding to do.

Amid a global crisis that saw the bail-out of American International Group (AIG), and a $700 billion plan to prop up other financial services companies, opinions vary on the appropriate consumer messaging.  The Washington Post bluntly recommends that Wall Street “cut the bull” i.e., image advertising, and focus on straight talk and education.

Irwin Gotlieb, CEO of Group M says "At the moment I don't think the consumer can comprehend what has just happened. The best-case scenario is that the consumer doesn't comprehend what went on and goes on merrily about their way." (Kind of like that episode on ‘Dallas’ where Pam awoke and Bobby’s death has all been a bad dream?)

Perhaps few consumers can explain the intricacies of how this mess happened; but very few Americans are likely to go “merrily about their way,” if recent Gallup polls are to be believed. As of September 22^nd, 80% of Americans view economic conditions as fair or poor; just 5% of Americans rate the economy as good or excellent. And those percentages are a long term trend, not a recent uptick.

Financial services marketers who think that this crisis can be smoothed over with the right messaging and snappy new ads are due for a rude awakening. Note to marketers: consumers regard advertising as a necessary evil; they find it intrusive and don’t believe that much of it is true.

In the aftermath of a massive financial bailout it’s not likely that advertising alone is going to rebuild consumer confidence. Especially since the financial ads we’re all so familiar with have a not-so-funny double meaning these days, like the tagline on a recent AIG spot: “The strength to be there.” Or not.

And will we ever be able to get that little boy’s whiny voice out of our head---you know, the one in the AIG spot that wakes his parents in the middle of the night, to say, “I’m worried about this family’s financial future. Does your retirement plan provide predictability of income and protection against market risk? ” He’s obnoxious, but, as it turns out, he has a point.

The Wall Street crisis strikes at the security of consumers already nervous about a weakened economy. The “we know what’s best for you” approach is history. (And no financial services firm will be immune, regardless of their role in the financial crisis.)

Consumers will be more independent in making financial choices, rely more on third party sources and will favor financial services brands that demonstrate responsiveness and innovation. Financial services marketers need to focus on demonstrating transparency and accountability to have a foundation on which to rebuild trust. 

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