Tough work in finance

Maybe it’s a side effect of skimming the New York Times and the Wall Street Journal every morning, but I’m starting to feel really bad for people who work in finance. Not all of them, of course; the ones who got us all into the mess we’re in deserve the scorn they’re receiving, along with some corporate alchemy (turning golden parachutes into lead). But banking and financial services are huge industries that everybody depends upon, and the worldwide ugliness we’re experiencing has got to be taking a heavy personal and professional toll on the folks who are left holding the bag.
Banks and investment groups are bigger brands today than ever before in history — though I can’t say I’ve done a whole lot of research to back that up — so whenever there’s news of a crisis or misstep, everything related to that brand takes a hit, and so does public confidence in general. The latest victims are in the Persian Gulf; Kuwait is planning a bank bailout, and Saudi Arabia is about to loan some $2.3 billion to low-income borrowers. (Link may require free registration.) Qatar’s stock market lost nearly 9 percent of its value yesterday. If you think they didn’t like the U.S. before, just wait — blame for the worldwide economic ugliness can be laid at our doorstep, and I’m sure some more fists will be shaken in our direction before this is over.
How do bankers and investment brokers deal with all this, and keep their customers from putting their money in the First National Bank of Mattress? you knew I’d work my way back to this … the answer is good CRM practices. The banking industry should be marketing the safest account options for individuals and businesses, and brokers should emphasize the securities that are the most, er, secure. They have to turn a profit, but the way to do this is to restore a feeling of confidence — relative to the rest of the world, if not absolute — that will encourage smart saving and sound investment. Account managers have to be even more consultative than usual, and make sure they’re selling a good solution for what the customer wants. If ever there was a time for long-term thinking, it’s now. Well-served customers are not only more likely to keep their business with you, but to keep their business — period. With financial uncertainty comes greater risk of failure, and any further mishandling at this point can destroy lives and livelihoods.
The need for good CRM is evident in any business when times are tight; financial services companies just have it harder right now because of the huge black eye they’re sporting. As with many shakeups in the past, the key is confidence. Panic leads to disaster, and FDR’s words have never rung more true: “The only thing we have to fear is fear itself.”