The finance industry has always faced a unique reputational challenge. Whether due to the abstract nature of financial products, historical scandals, or perceptions of greed and exclusivity, financial institutions rarely start off from a position of public trust. It must be earned and maintained, and the slightest breeze of controversy could take years for goodwill to be recovered.
Yet, many financial institutions still treat public relations as a reactive support function, not a strategic pillar. Consumer hesitation, investor wariness, and regulatory scrutiny all increase when public confidence dips. In a sector where perception drives valuation, losing control of your narrative can even cost your license to operate. In today’s information-saturated world, effective PR is as vital as risk management or regulatory compliance.
Many financial institutions lump PR in with investor relations (IR) or marketing. However, while IR focuses on shareholders and analysts and marketing to customers, PR has the power to shape the perception of all stakeholders. This includes employees, regulators, journalists, and the broader public.
PR is about building credibility, providing the strategic communication framework that holds during both stable and volatile times, which is common in the financial sector. It enables a bank to defend its values, explain complex issues clearly, and remain visible and trustworthy in the public eye.
To navigate this new era of financial scrutiny, institutions must embed PR at the heart of their decision-making processes. This means elevating PR to the C-suite. This is crucial in order to get ahead of any reputational risk before it is widely known to the public. You should let your PR team know so they can proactively reframe negative narrative through op-eds, media engagement, and employee communication. It leaned into transparency and thought leadership, stabilizing investor sentiment and reinforcing institutional confidence.
When Silicon Valley Bank collapsed in 2023, it was evident that PR was not part of their strategy. Communication delays and mixed messages amplified panic. The absence of a coherent PR response not only accelerated customer withdrawals but also created confusion among regulators and media. The institutions’ communications strategy (or lack thereof) determined the pace and scale of public reaction.
Strategic communication should be viewed as a board-level concern. It is no longer enough for PR to simply respond to crises—it must inform overall business strategy. One of the clearest intersections is between PR and environmental, social, and governance (ESG) efforts, as well as diversity, equity, and inclusion (DEI) initiatives. These are no longer “nice-to-have” add-ons, but they are core to regulatory compliance, investor expectations, and brand integrity. Communicating authentically about these issues builds both reputational capital and stakeholder confidence.
Financial institutions should also invest in crisis preparedness. Regular simulation exercises and pre-established media protocols will be key in responding quickly to and managing any damage before it escalates. A good PR team will also nurture long-term relationships with journalists, policymakers, advocacy groups, and local communities. These relationships not only help maintain goodwill but also provide valuable insight into shifts in public sentiment, creating a space of trust and open dialogue when challenges arise.
The myth that PR is intangible or hard to measure no longer holds. Reputational strength influences capital costs, hiring ability, partnership opportunities, and crisis resilience. Studies have shown that companies with stronger reputations recover faster from downturns, face fewer regulatory penalties, and attract more loyal customers.
For financial institutions operating in an era of AI-driven scrutiny, digital activism, and stakeholder capitalism, PR is about sustaining the credibility to operate in a world that demands accountability and transparency.
Mika Sudjarwo, Account Manager for PR and Events at Goho
