Oliver Chesher, MD of Galibier PR, explores the intersection of public relations (PR) and the financial services industry, focusing on the collections sector.
He discusses the challenges faced by collections firms, particularly in balancing their B2B relationships with lenders and the public perception of their activities. The conversation covers the shift from aggressive collection tactics to more empathetic strategies, the role of automation in improving efficiency, and the importance of financial literacy.
It also touches on how evolving media landscapes, including social media, are reshaping PR strategies, and how alliances across the industry can drive positive change.
Find out more about Galibier PR, background and experience -> Here.
Key Takeaways
- The collections industry in the UK is not facing a crisis, but it has a reputation problem, especially regarding how it is perceived by the public.
- PR campaigns in the collections sector tend to focus on B2B audiences, particularly lenders, rather than directly engaging with the public.
- There is often a disconnect between how collection firms market themselves to lenders and how they are perceived by borrowers, especially those in financial distress.
- The use of heavy-handed tactics in collections is becoming less effective, with successful firms employing empathetic, long-term forbearance strategies.
- Public perception is critical as any negative experience with collections can damage the lender’s brand more than the collections firm itself.
- The introduction of Financial Conduct Authority (FCA) guidelines and customer-centric approaches has led to improvements in collections strategies.
- Effective PR must move beyond press releases and adopt targeted engagement strategies that resonate with specific audiences.
- Social media and digital channels offer opportunities for more targeted, cost-effective messaging, but must be tailored to the right audiences.
- There is a growing need for financial literacy campaigns, but funding and commitment from major institutions remain a challenge.
- Strong partnerships and alliances across sectors can amplify PR efforts and drive industry-wide improvements.
- The best collection strategies combine automation with skilled human intervention to deliver empathetic and successful outcomes.
- Resilience in financial services and PR is crucial, with firms needing to balance short-term survival with long-term brand-building initiatives.
Innovation
- Empathy-driven collection strategies: Moving away from aggressive tactics towards forbearance plans and personalised engagement.
- Automation combined with human expertise: Leveraging AI and automation for routine tasks, freeing skilled professionals to handle more complex cases.
- Holistic PR approaches: Targeting not only lenders but also consumers, regulators, and other stakeholders through data-driven, targeted messaging.
- Financial literacy as a PR tool: Proposing long-term campaigns that educate future borrowers to reduce unethical lending and improve financial well-being.
Key Statistics
- No specific numerical data or statistics were mentioned in the discussion.
Key Discussion Points
- The UK collections industry’s reputation problem is nuanced and depends on whether the audience is lenders or the public.
- The majority of collections PR campaigns are B2B, targeting lenders rather than engaging with the public or borrowers.
- Collections firms must balance promoting their effectiveness to lenders with being seen as empathetic towards borrowers.
- There is a growing negative perception of collectors, exacerbated by TV shows portraying aggressive tactics.
- Successful firms use long-term strategies, recognising that most borrowers in distress are not deliberately delinquent.
- PR campaigns should involve stakeholder engagement beyond just marketing, including regulatory and public education efforts.
- Lenders’ reputations are at higher risk than those of collections firms when negative experiences occur.
- The rise of social media has transformed how PR and collections firms need to engage with their audiences, offering both challenges and opportunities.
- Financial literacy is a long-term solution to improving borrower behaviour and reducing unethical lending practices.
- Collaboration across sectors, including alliances with competitors, can enhance the effectiveness of industry-wide PR and improvement campaigns.
- PR in financial services is evolving from simple press releases to targeted, data-driven strategies.
- Collections firms that adopt AI and automation to reduce costs can reinvest in skilled human resources to handle complex, empathetic interactions with borrowers.
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