The regulatory handcuffs impacting brand communications

Mark Fensom

Mark Fensom, director of Warbox, explores how brand marketers can work around regulatory restrictions to land impactful messages.

Given the highly regulated nature of the financial services sector, and the stringent rules and regulations surrounding what businesses can and can’t say, any sort of branding exercise has to be approached with caution. Whether that’s the creation of marketing collateral, or tone of voice and target persona documents, agencies and in-house teams need to be acutely aware of changes to rules and regulations on what can and can’t be said or represented.

Messaging has to be clear

The introduction of Consumer Duty in July, 2023, had a profound impact on the industry. Designed to change the culture of mis-selling and misleading consumers, the regulator emphasised that firms need to be clear on exactly what they are offering.

This led me to consider the pressure on both in-house marketing teams and their agency partners. From refining key messages, to developing brand awareness and channel-specific campaigns, the handcuffs of the regulator cannot be forgotten due to the risk of fines, or reputational damage.

It’s not all about punchy marketing messages – trust is key

One article published earlier this year highlighted just how important public trust in banks is in maintaining ‘a thriving and stable banking system’. It’s a bit like a house of cards, without trust, banks can’t attract or retain customers and without customers, they can’t operate.

A number of factors will, of course, play into this trust, such as concerns around data security or broader economic instability, however a brand that commands trust and is well regarded in the market is far more likely to keep a solid and loyal customer base. Those that pursue outlandish marketing campaigns aiming to make a ‘big impact’, or follow an inconsistent brand voice will fall flat.

So what should organisations operating in the sector consider when looking to execute a successful rebrand or brand refresh?

Step one: Determining your brand’s purpose

We work with a lot of businesses who recognise they need help establishing their brand strategy and identity. The first step in this process is always determining your brand’s purpose. We often ask questions like why do you exist? What do you want to achieve? How do you want to come across? What’s important to you? What are your core values? What differentiates you from your competitors?

For those operating in the financial services sector, there’s no reason why these questions should be any different. We still need to develop a clear picture of what the business is looking to achieve and the messages it wants to convey, albeit with the regulator in mind.

Step two: Aligning your offering or service with key messages

Attention then needs to turn to the business offering and whether the product and services align with the key messaging. Contrary to popular perception, brand isn’t just about design. Accomplishing a rebrand visually and strategically whilst shaking up your business’ offerings to reach new consumers are two completely different things.

It’s important to also remember that any changes in a business’ product portfolio will need to align back to and cross reference against its core brand. For example, if a bank is offering a new, cutting edge app to help its customers manage their finances, then consideration should be given to how naturally this fits within its offering and aligns with other services under the brand framework.

Step three: Activation

We get it. You want to stand out, make a statement, disrupt the sector and approach things from a different angle.

But more often than not, the message becomes diluted through over regulation, internal rewrites and creative amends.

Yet if your strategic brand foundation is strong – you should, in principle, be able to cut through the monotony and noise. Foundational research and strategic brand investment at an early stage is critically important when looking to achieve a seamless activation.

And remember, consistency reinforces the message and builds trust. Stay true to who you are.

Step four: The seal of regulatory approval

While any branding or marketing campaign will go through layers of stringent approvals, we all know how quickly regulations can change. AI could be a vital ally here, able to act as a first pair of eyes and identify oversights or potential errors. This might involve scanning lengthy Financial Conduct Authority reports for updates, or checking the date new regulations are coming into effect. By using this technology, you can prevent wasted time and investment.

The process in action

The above process was followed during our time working with high-end financial advice provider, Almond Financial. Almond needed its brand identity transformed from inward-facing to one centred on its clients.

However, in this heavily-regulated sector, our research with the business’s management team was crucial to understanding what could and could not be said. The resulting brand we created highlights what sound financial and investment advice allows people to do and the freedom it creates.

A new set of lifestyle-focussed images, together with colour palette, fonts and logos, emphasises the prospect of happy retirement and being able to enjoy free time. This was activated through literature, web and social media, creating a consistent and welcoming impression across all the business’s touchpoints.

In showing that the business’s service is a conversational two-way relationship, the new brand gave our sister agency Tank all the assets needed to introduce Almond to a wider market.

Ultimately, no brand can escape the regulator and it’s in the best interest of everyone to ensure messaging is clear, consistent and easy to understand. However, by following these three steps you can still develop a brand identity that sets you apart from your competitors.

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