City & Corporate: Banks feel pressure to rejig comms

at the Japanese bank.

Nomura is unlikely to be the only bank rejigging its comms functions in
the coming weeks, with at least one large UK bank rumoured to be
trimming its team to cut out duplication across the group.

'If anyone has a chance to streamline comms it's the banks,' said one
senior PR source. Another described some consolidation as
'inevitable'.

The banks under most pressure to restructure internally are Lloyds, HBOS
and RBS, which took part in the recent government bail-out.

But senior comms professionals argued that a slashing of the comms
function at these banks is unlikely and would be hugely damaging.

'The need to communicate when you are owned or part-owned by the
Government is just as important as before,' said Ed Gascoigne-Pees, MD
of financial communications at FD, which advises Northern Rock.

He argued that because the taxpayer is essentially a shareholder in
these institutions, this necessitates a wide-ranging refocusing of
comms.

He said: 'Financial PR traditionally focuses on investors, analysts and
city media, but for the part-nationalised banks the remit becomes
wider'.

In recent weeks RBS has come under fire for a 'lavish' staff bash and
Northern Rock has faced criticism for its aggressive pursuit of
struggling homeowners. Both stories contained explicit references to
'taxpayers' money.'

'The softer stories take on a much great significance,' one city PR
specialist noted. 'Banks may be entertaining clients, but they will find
themselves fighting suggestions that public money is being wasted.'

He argued that other areas of comms, such as high-profile sponsorships
and government relations, also come under far greater scrutiny.

But Northern Rock's comms director Brian Giles said there was still a
need to behave like a public company in many senses. 'Some of the
audiences have changed and there is more intense focus on key areas,' he
said. 'But in many regards we still need to act as a listed entity.'

HOW I SEE IT - Richard Campbell, managing director, Capital MS&L

For those banks in which the Government is taking a stake, their
audience for comms is clearly going to be much broader. There will now
be a responsibility not just to communicate with investors and potential
customers, but taxpayers in general. These banks will have to be very
careful about how they are seen to be spending money. The tabloids have
already highlighted trips and parties abroad and these stories would not
be getting any prominence without the taxpayer issue. The banks will
need to communicate clearly with the public every step of the way.