April Fools'
Why financial brands should steer clear of pranks on 1 April | Issue № 16
This week / What’s new? | Why does it matter? | What’s next? | What else? | Quotable | One more thing
This week
Read on to learn why:
① April Fools’ pranks erode trust - and most brands can ill-afford that.
② Credibility is a brand’s most valuable asset.
③ Pranks should play to strengths while being fun and self-deprecating
④ The allure of crypto is proving too strong to resist. Even for grown ups.
⑤ Water is wet.
⑥ LinkedIn has two advantages in audio: professional users and scale.
⑦ Things aren’t getting back to ‘normal’ anytime soon.
This week / What’s new? / Why does it matter? | What’s next? | What else? | Quotable | One more thing
What’s new?
What a week it’s been for Volkswagen. “We’re rebranding.” “We’re definitely rebranding because we care about the environment!” “Actually it was a joke.” And all of that before 1 April. Engadget has a summary of the sorry mess.
In short:
On Monday, “CNBC spotted a leaked press release on its site and as skeptical as we were about the name, the company insisted it was real.”
On Tuesday, “Volkswagen US tweeted out a new logo and issued a press release announcing plans to rebrand itself as Voltswagen, in line with a push for electric cars.”
Later on Tuesday, “a Volkswagen spokesperson confirmed that the supposed rebranding was done ‘in the spirit of an April Fool's joke’."
This week | What’s new? / Why does it matter? / What’s next? | What else? | Quotable | One more thing
Why does it matter?
My 9-year old son suggested we all leave the house early and quietly on the morning of 1 April having scattered a few piles of ash around the house. His 12-year old brother - who is in the habit of sleeping in - would thus later wake up and assume we’d all been ‘snapped’ by Thanos. Now that’s a good April Fools’ prank. (As long as you’re a Marvel fan like we all are.) It’s personal, it’s funny, and it’s all over very quickly without anyone being hurt.
The first reason the Voltswagen debacle matters is because it proves - as if proof were needed - that people really don't want to be pranked by a big brand. Having your 9-year old brother play a trick on you is one thing, having a company do the same is far less fun.
Even Twitter knows it’s best to steer clear of April Fools’ pranks:
① The second reason - the more important reason - is that it erodes trust.
Lest we forget, this isn't the first time Volkswagen has been caught being less than truthful. It’s only a few years ago that the company was found to be installing software to evade emissions tests on diesel-powered vehicles, in a scandal that resulted in criminal charges against the company and its former CEO, Martin Winterkorn. Some brands enjoy stronger bonds with their customers but, much like financial services brands post-2008, Volkswagen simply can’t afford to strain its customers trust any further.
"We didn't mean to mislead anyone," a spokesperson for the company told The Wall Street Journal. Except, misleading people is absolutely what they meant to do. That’s the nature of an April Fools’ prank. So, you’re not competent enough to pull off a prank nor honest enough to admit it. Credibility destroyed.
The awful irony in all of this is that the rebranding idea is actually rather clever. Indeed, I could argue that it makes an enormous amount of sense for the carmaker to do this for real. What a great way to draw a line under the dieselgate crisis, put the spotlight on its new ID range and mark the company’s absolute commitment to an electric future. By making it a ‘joke’, not only did the venerable German brand spectacularly fail in raising any smiles, not only did it erode its own credibility, but it also managed to mock those of us who think that reducing emissions is no laughing matter.
Brands can be playful but that doesn’t mean they should ever be untrustworthy. A brand is a promise, a promise that says ‘you can trust us to consistently live up to our values’. Thats’ why April Fools’ pranks by brands are never a good idea.
This week | What’s new? | Why does it matter? / What’s next? / What else? | Quotable | One more thing
What’s next?
Take action
This week the lesson then is simple: the best course of action is no action. Resist. The. Urge. In financial services perhaps more so than any other sector, earning and keeping your clients’ trust is critical. Anything that dents your credibility puts that trust in jeopardy.
If you really must attempt one, at least learn from Google who produced the least awful corporate April Fools’ joke back in 2016:
③ The ad just about gets away with it because it follows some important guidelines:
Be self-deprecating: The ad playfully mocks Google’s image as a company of boffins building solutions in search of a problem.
Gently recall your strengths: There’s only a fleeting mention of it but the ad cleverly evokes Google’s lead in self-driving car technology.
Be funny and avoid controversy: Whether it’s the cute kids, the affable Dutch accents or the sight of a woman working on her laptop as she cycles, the ad puts a smile on all but the most ardent cynic’s face. It’s hard to argue with that.
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This week | What’s new? | Why does it matter? | What’s next? / What else? / Quotable | One more thing
What else?
Three other articles that are worthy of your time.
FINANCE
Goldman to offer investments in digital assets for wealth management clients
④ Despite high volatility, the returns on crypto are just too tempting to turn down.
“Goldman Sachs plans to offer investments in bitcoin and other digital assets to its wealth management clients from the second quarter, the latest top-tier company to move into the cryptocurrency space.”
“The move comes days after a report that rival Morgan Stanley had started offering clients investments to the emerging asset class.”
“Goldman will ultimately offer investments in bitcoin and digital assets that would include the physical bitcoin, derivatives or traditional investment vehicles.”
TECHNOLOGY
Banks are ‘dragging their feet’ on Open Banking
⑤ Incumbent banks not keen to encourage competition. In other news, water is wet.
“UK FinTech Tide has said the ‘slow uptake of Open Banking’ has meant missed opportunities for customers and companies who could have launched new products and services.”
“Tide cited the Open Banking Implementation Entity’s (OBIE) annual report, which said only 3 million UK customers and businesses are using Open Banking-enabled products at the start of 2021, and that account switching remains low.”
“Tide said it believes that by removing the block on charging to access data imposed by EU legislation, large financial institutions, including the leading High Street banks could be incentivised to participate in Open Banking.”
MEDIA & MARKETING
Even LinkedIn is making a Clubhouse clone
⑥ LinkedIn has two advantages in audio networking: professional users and scale.
“Clubhouse’s list of competitors is growing. LinkedIn has confirmed it’s also testing a social audio experience in its app which would allow creators on its network to connect with their community.”
“Unlike the Clubhouse rivals being built by Facebook and Twitter, LinkedIn believes its audio networking feature will be differentiated because it will be connected with users’ professional identity, not just a social profile.”
“In 2020, some 21 million people attended an event on LinkedIn, and overall LinkedIn sessions increased by 30% year-over-year. The company’s 740 million global members also last year built community, had conversations and shared knowledge, with 4.8 billion connections made.”
This week | What’s new? | Why does it matter? | What’s next? | What else? / Quotable / One more thing
Quotable
Charlotte Ransom, CEO of Netwealth - which announced it has completed its fourth round of fundraising this week with total investment now standing at £38m - on the wealth management industry:
“Our vision remains clear: to recast a wealth management industry that for too long has relied on opaque fees and outdated service models.”
This week | What’s new? | Why does it matter? | What’s next? | What else? | Quotable / One more thing
One more thing…
⑦ In a sign that things aren’t getting back to ‘normal’ anytime soon, the Coronavirus claims Sibos for the second year in a row. SWIFT announced this week that, as it was last year, its annual conference will be free and digital-only this year.
“A fixture in the calendar since 1978, Sibos in 2019 attracted a record 11,500 delegates and more than 300 exhibitors to London in pre-pandemic times.”
“As with Boston last year, the digital conference will take place during the scheduled Sibos week of 11-14 October.”
“The banking co-operative says it expects a return to normality for Sibos 2022, which will take place in Amsterdam from 10-13 October 2022.”