How Wells Fargo is trying to rebuild trust
I don’t think any industry elicits more feelings of distrust than the banking industry. As a matter of fact, banking and financial institutions beat out telecommunications, pharma, and even auto industries in levels of mistrust.
https://thefinancialbrand.com/22896/edelman-banking-financial-services-consumer-trust-study/
https://thefinancialbrand.com/22896/edelman-banking-financial-services-consumer-trust-study/
In December 2018, Wells Fargo was ordered to pay $575 million in fines for creating fake bank and credit card accounts. The fine was the largest ever imposed on a financial institution and would result in tarnishing the reputation of the bank. The scandal resulted in the firing of thousands of employees, resignation of the Chairman and CEO at the time, shattered ratings, and severed business relationship from several states and cities across the US. Pretty ugly stuff!
Since then the bank has been on a mission to restore its image and regain consumer trust. They understand that the first step is to be transparent, and that includes admission of guilt. Since the scandal, the company has been holding town halls with its employees, personal phone calls from the CEO, and in person monthly meetings with branches in different cities. They have also increased pay to address the concerns of their employees.
With the consumer, the bank is attempting to right its wrongs by giving the consumer more control over their finances. For example, customer now receive real-time alerts on low balances in order to help them avoid overdraft fees. This is instrumental in creating loyalty and trust, even if it comes at a price to the bank.
To address the concerns of the community, the bank has formed a sort of watchdog advisory council with independent directors. Additionally, the bank has donated almost $9 million to 462 nonprofits and schools.
After such a terrible scandal, Wells Fargo also decided that a small rebranding was needed to restore trust. According to an article by MarketWatch, the bank kicked off a marketing campaign in 2019 that included an “evolved” logo with a more “modern stagecoach” that is more digitally friendly in “colors and tone”. As their new CEO Tim Sloan stated: “Our goal of delivering exceptional service to customers and helping them succeed financially remains central to everything we do. As customer expectations continue to evolve, this campaign highlights that Wells Fargo is transforming to provide easier, more personal and helpful solutions.”
Only time will tell if the bank is successful in re-establishing consumer trust. Now, where’s the popcorn?
