Council Post: Trust Me If You Can: Why Reputation Capital Is A Must For Fintech Startups In This Economic Downturn
There is no better way to ensure your company can stand out against the economic downturn than by investing in your reputation capital.
Getty It is not necessary to remind anyone who cares about fintech as much as I do. For those of you who have not yet become interested in fintech, I will provide some cold facts. Fintech startups raised 40% more in Q3 2022 than they did in Q2. Fintech ranks third in VC funding with a 62% decline year-over-year. This means that fintech market players need to prioritize customer trust and relationships with stakeholders in order to establish solid credibility when faced with challenges. Your company's credibility will affect how easy it can attract investment and keep its liquidity. This term refers to the trust in a company's leaders and the brand value they have in the eyes market. As reputation capital directly impacts the company's brand, CEOs and founders could easily damage the company they represent with their questionable behavior, rash actions and reckless decisions.
Your customers, employees, investors, partners, and anyone else who hears about your company can accumulate reputation capital. It is simply the first thing people think of when they hear your name. It is best for you to have a positive thought. Although reputation capital is an intangible asset, it does not diminish the company's value. Because it helps you acquire new customers, and keeps existing customers happy when times get difficult, reputation capital is crucial to your company's long-term success. With more than 15 years of experience in PR and fintech, I know how brand reputation can help or hurt you. Consider the global financial crisis of 2007-2008. The U.S. housing bubble burst due to unethical lending practices and reckless risk-taking. Public perception was that wealthy businesspeople were receiving special treatment, while the rest of us were not. The public saw that industry leaders were lacking transparency, honesty, admitting errors, and compassion for the suffering of others. Companies should show compassion in times of crisis and address the needs of their customers. A decade ago, CEOs and business leaders were expected to just lead companies. They are now expected to lead economic and political systems. Consider Elon Musk, who can move whole markets with one tweet. Writing a few blog posts on random topics is not enough to make yourself a trusted thought leader. Find the topics and subjects that are relevant to your expertise first. Then, stick with them. These topics should be relevant to the industry you work in and your company's business. Don't be afraid to voice your opinion. If you know what you are talking about, it can give you an edge. Thought leaders, regardless of their industry expertise, are open to learning from other media outlets and influencers. They also enjoy attending conferences that inform them about the latest market trends and allow them to meet the right people. Participating in specialized events can help you establish yourself as an influential figure in the fintech industry and get media coverage. Even with the recent downturn, scandals, and layoffs I believe that the fintech industry is on the right track to a bright future. Fintech's dynamic nature is one reason the industry has a bright future. It is full of constant innovation and energy. As this sector recovers, the company's reputation will be a key factor in fintech's growth. Forbes Business Council is the leading organization for growth and networking for business leaders and owners. Do I qualify?