Branding, culture and sustainability are critical for financial services firms to differentiate themselves in a market which right now is rife with uncertainty and caution. Clear communication in this environment is also key to ensuring strong alignment between firms and their clients.
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Branding, culture and sustainability are critical for financial services firms to differentiate themselves in a market which right now is rife with uncertainty and caution. Clear communication in this environment is also key to ensuring strong alignment between firms and their clients.
“As firms push to differentiate themselves in a truly competitive environment, branding will continue to be a top priority – something that was once just an exercise for consumer companies, is now vital for private markets. Next year will continue to be another big investment year for firms in brand, digital, video, audio and paid digital amplification and capabilities,” says Jennifer Prosek (pictured), founder and managing partner of Prosek Partners.
The volatile markets and uncertain economic outlook have contributed to greater caution on behalf of clients. However, Prosek notes that with caution, comes a greater need for clear and precise communications, and in many instances, overcommunicating to all stakeholders.
This has been translated in two ways – firms are putting together simple, differentiated narratives, with language that is authentic and precise and that has been stress-tested to pass muster with all stakeholders. Prosek says clients have also expanded their use of digital tools, such as LinkedIn, to deliver these messages to targeted audiences for fundraising, building pipelines of investments and recruiting talent.
The effectiveness of these efforts also hinges on company culture. “Developing a strong culture continues to be a top priority for us and for our clients. Through the pandemic, we’ve all learned that strong cultures produce better outcomes for all – for the company, for the employees and for the clients.
“So, the risk is high for those firms that do not place an emphasis on a culture that is positive and flexible to the changing ways of the workforce, whether that is in an office, hybrid or fully remote,” Prosek advises.
Sustainability and ESG also form part of the foundations for a resilient business in the current environment. Investors continue to seek funds which focus on these areas and Prosek anticipates continued emphasis on measurement and reporting, whether this be on climate emissions or diversity. However, she notes: “It won’t be enough to acknowledge the problem and have a plan. We have moved beyond that. The best-in-class firms are the ones that will publish their results.”
She says how Prosek has been helping clients to develop a precise vocabulary that accurately and authentically outlines their path to net-zero or their approach to building a more diverse workforce.
Bringing all three elements together, Prosek expects clients will be seeking support in reaching investors globally, strengthening their company culture and telling their sustainability story. These dimensions will all be key to managers of private capital as demand in the space continues to grow.
Prosek comments: “Private markets will continue to see huge growth in the years ahead as more investors search for yield amid choppy and uncertain equity markets. Today, a majority of the appetite comes from pensions, endowments and sovereign wealth funds. We will likely see an increased demand in the democratisation of private assets, and we expect it to continue, especially from family offices and retail investors, as online platforms make it easier to access funds.”
