For any organization, experiencing a crisis is inevitable. It will happen. But for a financial institution, the consequences may be extreme – even detrimental.
In The 2020 Financial Institution Crisis Study, we identify what FI crises would lead Americans to leave a financial institution, as well as how this would vary across different demographics. The results show that certain financial institution crises could be extremely detrimental for customer retention.
Knowing how much reputational damage can be done following certain types of issues and understanding how different demographics perceive different types of emergencies, financial institutions must have plans in place to ensure their brand is protected. And they must be able to communicate to customers the situation and their plan to correct issues.
Otherwise, they could lose big.