A common cause of reputation damage is a failure to anticipate.
Accusations that a Kiwibank manager’s neglect helped a customer invest in a scam illustrates this point.
Given the rate of scams right now, this event was on the cards. The bank’s autonomic response suggested they had not prepared – which is a vital function of PR.
The bank said ‘standard processes were followed’. If so, these did not prevent the fraud, which feeds public scepticism that banks aren’t able to protect customers.
Demands for Government to compel banks to better protect customers are getting louder and more frequent. Paltry “standard processes” responses will suggest to stakeholders that action is needed.
