Professionals in the finance industry need to be very careful with their reputation. Any negative information about your business can seriously impact your standing in the community and dramatically impact your career projections. When a financial advisor, brokerage, or financial institution has a positive reputation, they will find it easier to attract clients and quality staff members, while a negative reputation will lead to reduced income, termination, and in some cases being fully excluded from the industry.
At DiamondLinks, we understand the importance of reputation management in the finance industry. There are several concrete steps that can be taken to cement your positive reputation with the public. We also have proven techniques to help to combat negative information that is unfair or misleading.
Clients need to put a great deal of trust in their financial advisors and institutions. A person’s livelihood depends on their ability to keep their financial situation strong. Any sign of a poor reputation can cause prospective clients to turn away from the company.
For example, Wells Fargo suffered a devastating blow to its reputation when the scandal of creating false consumer accounts broke in the news. Wells Fargo was fined over a billion dollars for creating an overwhelming number of false accounts, as well as charging unwarranted mortgage fees and fraudulent auto insurance policies.
The company experienced $619 million in operating losses in 2018. They have also had to spend a great deal of money on advertising and promotion in an attempt to bring their reputation back from the brink. While these damages are shocking, the negative reputation of Wells Fargo had an impact at every rung of the chain of command, from CEO to advisor. Advisors across the country were suddenly forced to field questions about their involvement and were scrambling to find ways to prove their trustworthiness.
While the overwhelming majority of financial advisors are above-board and focused on helping their clients manage and grow their money, unethical advisors give the business a bad name. These bad actors can cause damage to their competitors’ businesses as well as their own.