We all know what a high-profile PR disaster looks like. Think Harry and Megan’s infamous ‘Megxit’ interview with Oprah, or how Ticketmaster failed miserably to take responsibility for the Oasis ticket price scandal. Of course, not all PR crises make for global headlines, but that doesn’t mean they can’t be incredibly damaging.
In my years working in public relations, I’ve seen many a crisis unfold, and I know how easily a single misstep can send customers fleeing and regulators knocking – particularly in fintech, a sector prone to cyberattacks, data breaches and regulatory challenges.
Unfortunately, the question probably isn’t if a fintech business will face such a crisis, but when. And when that time comes, your response can mean the difference between emerging stronger or losing everything.
The cost of poor crisis management
A fintech company’s reputation is one of its most valuable assets. Any hint of insecurity – whether it’s a breach of customer data or a service outage – can lead to panic, lost customers and long-term brand damage.
The true cost of a brand crisis doesn’t just affect customer trust and sales. It extends across multiple areas. Recovery requires significant expenditure, impacting operating expenses and labour costs, and excess operational fees arise from increased customer acquisition expenses, staff overtime, regulatory fines, or refunds.
Lost revenue can result from boycotts, and decreased acquisition, purchase frequency, and order value. Market capitalisation may also decline due to share price drops or underperformance.
Plus of course, security threats lead to operational disruptions, property damage, insurance costs and liability expenses. All this means the cost of even a minor PR crisis can quickly rack up, and that’s not factoring in the long-term losses associated with reputational damage.
Given these stakes, fintech leaders must have a proactive and strategic approach to crisis communications.
Managing reputational risk
You might not always see a crisis coming, but you can be prepared for when it hits.
Transparency and timeliness are crucial in crisis messaging – silence or misleading information can quickly erode the trust that’s so essential to fintech success, so companies must communicate promptly and honestly when an incident occurs.
Remember that delays or vague responses will only fuel speculation and worsen the situation, whereas a clear, factual and empathetic message reassures stakeholders that the company is taking decisive action.
Strong leadership is also vital in crisis response. Executives and key decision-makers must be visible, demonstrating accountability and a commitment to resolving the issue. A well-prepared CEO or spokesperson who addresses concerns with confidence and clarity can significantly mitigate reputational damage. Whether through press briefings, social media updates, or direct customer engagement, leadership presence is crucial in maintaining public trust.
Preparation is so important, and I always advise fintechs to have a well-documented crisis communication plan in place. This should include designated response teams and spokespeople, pre-approved messaging templates for different scenarios, clear escalation procedures, and guidelines for engaging regulators, customers, and the media. Regular training and simulation exercises are a great way to ensure teams are ready to respond when a crisis emerges.
Leveraging digital platforms in a crisis
Fintech companies operate in a digital-first environment, so crisis communication strategies should reflect this. Social media, company blogs, and direct messaging channels are critical tools for real-time updates. Organisations should use Twitter and LinkedIn for immediate public statements, then update customers via email and app notifications.
It’s also a good idea to offer FAQs and dedicated response pages on websites. By utilising multiple digital platforms, fintech firms can ensure their message reaches the widest possible audience quickly and effectively.
When a crisis strikes, remember:
- Act fast but thoughtfully. A slow response can create panic, but rushed, unverified statements can cause more harm.
- During a crisis, customers are not just looking for facts; they need reassurance. Empathetic communication helps retain customer loyalty.
- Avoid corporate jargon. Use a human tone, acknowledge concerns and demonstrate a clear commitment to customer wellbeing.
- Own the narrative. If you don’t shape the conversation, others (including competitors and critics) will.
- Engage proactively with regulators. A cooperative approach with regulators can prevent compliance issues from escalating into full-blown crises.
- Monitor public sentiment. Use social listening tools to track customer concerns and adjust messaging accordingly.
- Follow up! Customers and stakeholders want to see meaningful action post-crisis. Provide updates on corrective measures and improvements.
As the saying goes: ‘An ounce of prevention is worth a pound of cure’. This is certainly true of crisis comms.
In fintech, where trust and credibility define success, effective crisis communication is non-negotiable.
By embracing a proactive and strategic approach, fintech firms can turn challenges into opportunities to reinforce trust, resilience and industry leadership.
