Election Season: Protecting Brand Reputation and Managing Political Content

Election years bring heightened scrutiny, impassioned discourse, and increased engagement on a variety of platforms, including social media, news outlets, and public forums. For financial institutions such as banks and mortgage lenders, this charged environment presents increased challenges when it comes to safeguarding their brand reputation, while also monitoring how political content, no matter how mild, may or may not intersect with their business in positive or negative ways.

Political events and discussions often have a far-reaching impact on the economy, legislation, and, ultimately, the financial landscape. This makes it all the more important for financial institutions to develop a strategy for navigating these challenges while remaining as politically neutral as possible and compliant with regulations. Below, we’ll explore several strategies to help financial institutions effectively manage these issues during an election year.

Maintain Political Neutrality and Avoid Endorsements

Political endorsements, either perceived or direct, can have long-term consequences for financial institutions. The highly polarized nature of modern elections makes it critical for institutions to remain politically neutral, ensuring they do not alienate or upset any segment of their customer base. This neutrality allows institutions to retain consumer trust across the entirety of the political spectrum. While ‘taking sides’ on any issue may win you immediate followers, it will also create immediate, and often vocal, detractors.

While individual executives or employees may have personal political affiliations, these should remain separate from the corporate brand. Many customers rely on financial institutions for stability and trust, so aligning the brand with a particular candidate or political party can quickly erode that trust. As such, it is essential to establish clear internal guidelines that address political statements and actions made by employees or executives, particularly when using corporate channels or representing the institution in public forums.

Prepare for Regulatory Scrutiny

Election years often bring increased regulatory scrutiny, particularly for financial institutions. Political discourse commonly centers on topics such as economic policy, regulatory reform, or changes to financial industry oversight. Mortgage lenders, banks, and other financial entities may find themselves facing heightened attention from policymakers and regulators, depending on how political winds shift. During such times, it’s essential to have proactive risk management strategies in place.

Financial institutions should closely monitor developments in proposals related to the financial industry during an election year, especially those related to banking, lending, housing, and the economy as a whole. Today’s proposal might be tomorrow’s new regulation. Understanding how potential changes might affect the business allows institutions to pinpoint and mitigate risks early. This proactive stance can help prevent any missteps that could harm the brand’s reputation, or worse, result in costly compliance violations.

Develop Social Media Policies to Handle Political Content

The role of social media in elections cannot be overstated. Platforms like Twitter, Facebook, Instagram, and even TikTok are often filled with heated political discussions, and financial institutions need to be vigilant about how their brand engages with or is associated with these conversations. Organizations should create policies that prevent overt political commentary on social media, while encouraging positive engagement in ways that are consistent with the brand’s values.

Here are a few best practices for managing social media during an election year:

• Review social media posts before they go live: Implement a review process for social media posts to ensure that no content appears to endorse a political party or candidate. Even if language in a post accidentally alludes to taking a side or backing a candidate or issue, the resulting fallout could be damaging to the brand.
• Avoid sharing or commenting on politically charged topics: Financial institutions should always steer clear of sensitive political discussions that could easily be misinterpreted. It does not benefit a company to get involved in political debates, but it could seriously harm its reputation.
• Establish internal guidelines for employee social media activity: Employees, especially those in leadership positions, should be reminded that their social media activity, even on personal accounts, can be linked to the institution. Establishing clear policies on employee social media use helps prevent reputational risks.

Monitor and Respond to Public Sentiment

Election-related events can quickly ignite public debates that spread rapidly across media platforms. For financial institutions, it is essential to monitor public sentiment during an election year and adjust their communication strategies accordingly. This sentiment can ebb and flow quickly in the weeks and months leading to an election, so tracking social media and news coverage provides valuable insight into how the public perceives the brand and how any political content might be influencing that perception.

Financial institutions should make use of media monitoring systems that track mentions of the brand across various platforms. This system can allow the institution to respond swiftly to any negative associations or misinformation. For example, if a false narrative is circulating that ties the institution to a particular political agenda, the communications team can swiftly issue clarifications or corrections.

In addition, institutions should be prepared to distance themselves from third-party endorsements or donations that might be seen as politically charged. Election-year advertising needs to be carefully curated and cross-checked to avoid unintentional political undertones.

Maintain Open and Transparent Communication with Customers

Customers often feel anxious during election years, particularly when economic policies, interest rates, or financial regulations are frequently debated. The prospect of a swiftly approaching and unknown level of change can easily create uncertainty in the industry. Banks and mortgage companies can mitigate this anxiety by maintaining open and transparent communication with their customers and serving as a comforting partner in the industry. Proactively explaining how potential changes in economic policies may affect their financial services, loans, or mortgages helps establish trust and demonstrates a firm commitment to customer care, regardless of whatever changes may be on the horizon.

During troubling times, customers want reassurance that their financial institution remains a stable and trustworthy partner. Consistent updates, whether via email, newsletters, or social media, can help reaffirm this stability. By keeping communication friendly and nonpartisan, financial institutions can safeguard their reputation and keep their customer base engaged, even during periods of political turbulence.

Focus on Long-Term Brand Values

Rather than reacting to every political event, financial institutions should focus on reinforcing their core brand values. Elections come and go, but a successful brand is one that weathers the storm without breaking from its mission. Sticking to long-term goals – such as financial inclusion, innovation, or community support – provides a stable foundation that customers can rely on, even during times of political upheaval.

Brand messaging should consistently highlight the institution's long-term commitment to providing excellent financial services while maintaining ethical standards and acting in the best interest of its customers. This approach helps to shield the brand from the volatility of election-year politics while strengthening customer loyalty. Yes, an election might be just around the corner, but a ‘business as usual’ mentality goes far when it comes to allaying customer fears and concerns.

Rise Above the Fray and Keep Your Customers First

Navigating an election year can be a delicate task for financial institutions. By maintaining political neutrality, preparing for regulatory changes, developing sound social media policies, and keeping open lines of communication, banks and mortgage companies can safeguard their brand reputation and build stronger relationships with their customers. Staying focused on long-term goals and values, rather than reacting to current political turmoil, effectively positions a brand as a trusted institution through both election cycles and beyond.

By employing these strategies, financial institutions can protect themselves from reputational risks and protect their customers from inappropriate and politically charged messaging.