In recent years, the communication approach of top bank CEOs has notably shifted. They have become more cautious, distancing themselves from the media and leaving the talking to their communication specialists or subordinates. These specialists seem to operate under the belief that no news is good news.
Shift in Communication Strategy
In the past, bank CEOs were more approachable and willing to engage with the press, readily taking calls or responding to messages from reporters. Those days are over. Today, the CEOs of large private banks are particularly reserved in their dealings with the media, while those of mid-sized banks are only slightly more accessible. Smaller banks, on the other hand, are more open, allowing their CEOs to communicate more freely to gain visibility.
Role of Communication Specialists
Why do most big bank CEOs avoid the press, even during quarterly result announcements? It’s likely a PR strategy to prevent bad press and controversies on sensitive issues. This approach may stem from lessons learned from past mistakes made by their predecessors, who often spoke too freely and created negative publicity.
“It’s better to keep silent rather than shooting your mouth off and inviting bad press,” said a senior corporate communication official with decades of experience at a well-known bank.
Let the Numbers Speak
“The CEOs of banks now think: ‘let my numbers tell the story rather than my going out and talking to the press,’” said another PR industry executive with over a decade of experience in the communication divisions of leading banks.
This strategy has proven effective in two main ways. First, it reduces the amount of quote-based coverage in the press, keeping reports focused on basic numbers and ‘safer’ details. Second, it keeps the public and media guessing about the inner workings of the top management, leading reporters to stick to basic facts and figures.
Media Training and Crisis Management
A significant factor in this behavioral change is the media training provided by consulting agencies or crisis management teams. Bank CEOs are coached on how to handle ‘problematic’ reporters who ask tough questions about sensitive topics, such as certain transactions or developments involving the bank and the regulator.
As a result, many bankers who were previously approachable have become less visible after reaching a certain level. One bank CEO, for example, used to eagerly offer comments to reporters but is now available to the press only under strict supervision from the communication team. This isn’t an isolated case.
Institutional Changes
As banks grow larger, their communication strategies evolve, with dedicated spokespersons authorized to interact with the media. “Keeping information out of the press is also a great PR strategy. Sometimes, no news is good news,” said another PR executive long associated with a bank.
Regulatory Fear
Another reason for this shift is the fear of the banking regulator. Banks are extremely cautious about what their top executives say to the media, aware of the potential repercussions from the Reserve Bank of India (RBI). This caution is justified, considering the regulator’s close monitoring of news.
In the digital age, where every word is recorded and archived, retracting statements—a practice many bank CEOs previously engaged in—is now nearly impossible. Therefore, the better alternative is often staying silent.
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