Is your financial services brand a compliance asset?
Some rules can't be bent. In the financial services industry, this means navigating an intricate web of regulations from major players such as the SEC, FINRA, and FDIC, all designed to promote fairness, safety, and honesty. What if your brand actively helps you stay on the right side of those rules? A strong, intentional brand can be your secret weapon in the compliance game, forming a powerful foundation for your company's success. Here are a few reasons why.
Enhances clarity and consistency
In the financial services industry, clear communication is crucial. There are acronyms galore and big, intimidating words that can make many of us feel like we need a finance degree to make sense of it all. However, while jargon is a reality in this industry and can’t always be avoided, there is a way to capture it in a defined brand voice that aligns with your brand’s personality.
Most companies struggle to articulate what they do consistently. A CEO says something different than a marketing manager, who says something different than a loan officer. That can be confusing internally and to their clients. Determining your brand voice along with key pieces of language, including an about statement or elevator pitch, can significantly reduce the risk of misinterpretation, which can lead to compliance breaches. You don’t want to sound robotic. But when you can communicate in a way that sounds true to you and your work, clients and investors believe that you are fair and that you’ll look out for their best interests.
Builds trust and credibility
In a highly regulated industry like financial services, trust is paramount. Think about when you're interested in a service and you see a familiar logo. You are much more likely to pay for that service if you’ve seen it before, especially more than twice. Repetition leads to trust.
Developing a solid brand is a proactive method for building trust. And when there is trust, there are fewer client complaints and less risk of investigations from regulatory bodies. Consistent branding also projects an image of professionalism and stability, demonstrating a commitment to ethical practices and long-term thinking. These are good indicators that the company is sticking around.
Streamlines internal processes
A big part of compliance is ensuring your team is operating on the same page. When everyone on your team understands your values, mission, and standards, it simplifies training on compliance requirements. Your people understand the makeup of your brand and how the colors, the logo, and the language work together. They are all on the same page when talking about the company with each other and in the public eye.
This knowledge and buy-in empower everyone on your team to create cohesive content and interact with clients in a way that not only feels true to the organization but also aligns with regulatory expectations. In other words, your brand guidelines become a practical guide for "doing the right thing."
Demonstrates a proactive compliance culture
When your brand champions transparency and credibility (through a lot of the above), you foster greater trust in the financial system. You also signal to regulators a commitment to compliance. A brand that communicates compliance can reflect an organizational culture where adherence to rules is not just a checkbox, but an integral part of your business and identity.
This can occur during the brand development process. Bringing your team together to go through exercises and have conversations about why you do what you do helps solidify your brand. And that brand can contribute to a more favorable perception from regulatory bodies, potentially leading to fewer audits or more constructive interactions.
Want to build compliance into your brand? Let’s brainstorm.
