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Pivoting in Crisis: The role of technology

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Our second Pivoting in a Pandemic webinar on panel 17th April, comprising Nick Chiarelli (Head of Trends, Unlimited Group), Shane O’Donoghue (Director, Nelson Bostock Unlimited), Leila Hajaj (Senior PR & Comms Manager, Ocado Technology) and Alfonso Ferrandez (CTO of Doctorlink), discussed how the role and contribution of technology is changing in the light of the Covid-19 outbreak.

Technology has kept us safe, fed, connected, and entertained in lockdown

COVID-19 represents an unprecedented challenge to global governments, health services, corporations and individuals alike. With more individuals working remotely, technology is in the spotlight. Firstly, there has been a strong role for tech in keeping us safe and healthy. Healthtech has played a pivotal role in supporting the heroic efforts of individual healthcare workers. It has exploded very quickly from a start-up to provide critical services. Because of that, it is unthinkable that it will not continue beyond COVID-19.

Next, there has been a strong role for tech in keeping us fed and provisioned. Modern food provision cannot happen without a huge role for robotics and automation. This is especially the case when you consider the huge increase in demand we are currently seeing.

“This is an ongoing battle. The businesses that will win are those that bring people together and allow them to live as normally as possible.”

– Leila Hajaj, Ocado Technology

Another major (and perhaps unsung) aspect of how the tech industry has stepped up to address these unprecedented challenges is by breaking down competitive walls and enabling collaboration.  Apple and Google collectively have access to 3.5 billion smart devices worldwide. Using these devices for contact tracing in the fight against the virus is groundbreaking.

“Contact tracing itself is only effective if mass testing and diagnosis are also available. I think some of the big technology successes could be in the smaller areas, such as writing software that improves the productivity of human contact-tracers, online interview forms for potential contacts, visualisation dashboards for relevant data and telemedicine for remote diagnostics.”

– Shane O’Donoghue, Nelson Bostock Unlimited

Technology has boosted societal and workplace cohesion

During the lockdown apps that connect us, like Zoom and Houseparty, have taken off and (anecdotally at least) gone mainstream. They are no longer the domain of the young, upscale tech elite.

The pandemic has also changed communication in the virtual workplace. But the transition has not been perfect. In businesses that already embrace collaboration, the transition has been seamless. For others, it has been more challenging. It’s not perfect and certainly not a like-for-like replacement for human interaction. For example, accidentally bumping into someone in the lift can sometimes be very beneficial. There is still room for technology to innovate here.

The current situation places greater pressure on connecting

The sudden shift to remote working and social isolation merely accelerates a trend towards always-on connectivity. However, this was present before the COVID outbreak.

“I think it was on its way before COVID. When the pandemic first came, you were expected to roll out of bed and immediately start communicating with colleagues. That’s worse than before. Now there’s also a respect that people have different commitments. There’s a better understanding that people can do their work well whenever it suits them”.

– Alfonso Ferrandez, Doctorlink

There have been changes in expectations, both good and bad and businesses need to find solutions that will ensure both productivity and staff wellbeing, such as having separate devices for work and personal use, setting personal boundaries about work hours that everyone understands and respects. Some of this will be tech-enabled and some about strong emotional intelligence. In all likelihood, we’ll all come out of this as better employees, employers and colleagues, both when we are working remotely and when we are back in our offices.

COVID is forcing citizens to forego their privacy, but only temporarily

The current COVID-19 outbreak has potentially given governments around the world a remit for ever greater public monitoring. China has been cited as an extreme case (link) but civil libertarians around the world have been worried about the precedent this sets for the future (link) and it is already happening in the UK and the US, law enforcement in the US using facial recognition tech from Clearview AI and X-Mode in the US tracking Spring Breakers flouting the lockdown rules.

“At the moment, COVID trumps our need for privacy and people are ok with that. Longer-term the only way to get citizens ok with increased access is radical transparency.”

– Shane O’Donoghue, Nelson Bostock Unlimited

Data and privacy concerns may be a universal truth but the way they manifest themselves varies hugely from one industry to another. In healthcare, for instance, there is a feeling that we need to prepare to allow urgent medical requirements to trump privacy concerns. The British public seems to back such a view, with recent research from YouGov (link) suggesting relatively high levels of comfort with various monitoring techniques during the current outbreak:

  • 51% comfortable with asking people to report others who breach the rules
  • 50% comfortable with using facial recognition tech to identify those breaching lockdown
  • 50% comfortable with using drone tech to photograph people making unnecessary journeys
  • 43% comfortable with analysis of social media accounts to identify those breaching lockdown

It is crucial to recognise just what an extreme situation we are in. While people might have a greater tolerance for monitoring than usual right now does not mean that they will accept the same once things are back to normal so, in many senses, the usual rules of data engagement will still apply.

Consumers remain willing to share data for tangible benefits

In the commercial world, data is very important. This is because it is capable of optimising and improving systems and services. Data can prepare us for the future. Well-kept data can be of high value. For example, with large numbers of people ordering groceries online more often, or for the first time, data is vital in learning about shopping habits. This data enables retailers to prepare to offer the best possible service.

Lockdown accelerates our reliance on automated solutions

The lockdown places huge pressure on logistics, supply chains, distribution networks and manufacturing capacity. Bearing this in mind, automation is becoming increasingly important. Automation enables staff redeployment. People can move to an area where the human touch is important. It has kept infrastructure moving while there has been illness and absence. Moreover, it can help to keep contamination at a low level.

COVID means businesses have to be responsive to higher demand through automating processes. Automation drives the rapid scaling of solutions, which would otherwise be limited by having humans in the loop. The current situation is going to supercharge automation.

“Before COVID, less than 1% of patient consultations with healthcare professionals were virtual. Right now, it is at 70-90%. We expect to see it settle out at around 50% of all consultations through video longer term. This situation has accelerated the adoption of technology because it has simply had to be implemented and then people see the benefits.”

– Alfonso Ferrandez, Doctorlink

Retaining the best of our new behaviours in the post-pandemic New Normal

Some claim that “the world won’t be the same again” after coronavirus. Conversely, others say this is a temporary interruption. While it may be naïve to expect a new reality, it is reasonable to imagine a post-pandemic working world that has changed permanently in some respects.

The panel agreed that attitudes and behaviours had changed. Some of which are worth keeping. For example, people being thriftier, kinder, more considerate and spending greater amounts of time with their family. We’ve adapted to flexible working patterns, telemedicine and ordering groceries online. We can expect the post-COVID demand for these things to be greater than before.

There will be more pressure on technology businesses to deliver more. Given that we will probably experience a global recession, standards of delivery will be hard to maintain. For tech businesses to “walk the walk” they are going to need a variety of factors in place:

  • Rules about data use have been relaxed in certain medically vital use cases. However, they will need to be reintroduced post-COVID to prevent misuse.
  • A significant inward investment will be needed to enable the necessary hardware acquisition to complement software solutions.
  • The sector will need to build greater consumer trust and a solid commercial model to underpin the data sharing needed to drive personalised product and service offerings.

That being said, it is more than likely that the tech sector will emerge from COVID being seen as a strong net contributor to society. It has kept us safe, fed, connected and entertained, though, some will emerge stronger than others:

“The businesses who’ll come out of this stronger, under the circumstances, are likely to be the ones who haven’t had to pivot massively in their business models. For example, those who have embraced automation from the outset.”

– Leila Hajaj, Ocado Technology

What next?

Find our next ‘Pivoting in Crisis’ webinar here, where we look at brand reputation during a time of crisis.

This article was written by Nick Chiarelli, Head of Trends at Unlimited Group, and originally appeared on the Unlimited Group news page.

 

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Pivoting in Crisis: Brand Reputation

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Our third Pivoting in a Pandemic webinar panel comprising Nick Chiarelli (Head of Trends, Unlimited Group), Caroline Coventry (Director, Nelson Bostock Unlimited), Phil Bloomfield, Corporate and Consumer Communications at dnata Travel Group) and David Cook (Director of Corporate Communication at Canon EMEA) discussed the approaches that brands should be using to maintain their brand reputations during the Covid-19 outbreak. It took place on 27th April 2020.

Brand reputation in times of crisis: stick to the basics and put people first

As brands seek to navigate lockdown, some are in better business shape than others. For example, those in retail grocery are faring much better than those in the travel and hospitality space. However, whatever their circumstances, all brands must carefully consider the way they communicate during these challenging times.

There is a ton of research that talks about brands’ response to this crisis. Some suggests brands should cut their advertising, while others say they should spend more than normal. This has famously been P&G’s strategy in crises past and present (link). Much of the evidence suggests that consumers don’t expect brands to stay silent. They are looking for brands to offer support and practical help:

  • Only 8% feel that companies should stop advertising during the crisis (link)
  • 50% agree that companies should talk as they have always done during the crisis (link)
  • 75% agree that brands should continue to inform people of what they are doing during the crisis (link)

Depending on who you are, your sector and the challenges your consumers face, there is a hierarchy of messaging priorities. Primarily it should be crisis management. After that, it should be business as usual, focusing on the basics and helping consumers. Finally, if appropriate, brands can consider growth. This could either be through enhancing their brand reputation or exploring emerging opportunities.

“Doing the basics well and doing the right thing when nobody is watching. You are not going to go far wrong if you stick to that”

– David Cook

Loosely put, those basics include putting people first at all times. Deal only in facts and avoid speculation. Base your strategy around expert guidance from the government and health authorities. Finally, that you ‘show up’ and proactively communicate across both internal and external audiences. Consistency is also key, even when dealing with tens of thousands of employees across dozens of countries.

The role of businesses is different by industries and brands. However, all can, and should, focus on offering genuine utility. Grocery, tech and entertainment brands all offer things that people need and/or are currently helpful. In these cases, there is a clear and justifiable reason for these brands to communicate with their audiences. A good example here is Unity Technologies, who have been offering coding sessions for free.

There are, of course, exceptions. This issue of crisis management is very clear in the travel sector. This is an industry which is dealing with major issues like repatriation, refunding and rebooking. The fact that many are not in a position to refund customers, according to the law, means that travel companies are taking a massive reputational hit currently. They face a real dilemma: on the one hand, they need to remain visible so that they are front of mind when the economy rebounds, but on the other hand, raising their head above the parapet risks censure, because any tone of future optimism jars with the current issues they are facing.

But can there be an opportunity in crisis? While consumers don’t expect brands to stay silent, their antennae are super-sensitive to any potential missteps. They are listening out for any signs of exploitation or opportunism. And, worse, there is a clear feeling that what happens in lockdown may not stay in lockdown – in other words, that, while correctly reading the room right now will bring benefits, failing to do so could have severe long-term consequences:

  • 80% agree I have noticed companies being a force for good during the crisis (link)
  • 67% agree I have noticed companies trying to take advantage during the crisis (link)
  • 83% agree the way that companies conduct themselves during the crisis will impact whether they do business with them in the future (link)

 “At times like these brands must be mindful of any communication, external or internal. No matter how well-intentioned, enthusiasm for new business initiatives and brand enhancement efforts can easily be misinterpreted. Brands must not be perceived as being opportunistic in exploiting what is a global health crisis.”

– David Cook

Of course, there are opportunities but there is a real difference between “opportunities to help consumers” and “opportunities to help yourselves”. Short-term gain must not come at the expense of your brand and if things go wrong, your longer-term reputation as a company is at risk.

“There are brands that are treating this as an opportunity, but it comes across in a kind of ambulance-chasing sort of way. Right now, we need to redefine what winning means”

– Phil Bloomfield

The over-riding feeling is of a very challenging comms landscape – a perfect storm of an unprecedented health challenge, difficult trading conditions, fast-changing consumer needs and massive uncertainty about the short-, medium- and long-term futures. Adaptability is the key. The comms teams must evolve their responses as things change.

“With this current crisis, it’s not possible to have a traditional plan or playbook in place. You need to remain flexible and take your lead from government and health authorities.”

– David Cook

An evolving role for comms

The notion of stakeholder capitalism, the idea that brands are accountable to all, has become very powerful over recent years. Some have criticised the PR & Comms role as doing little more than providing a front through which businesses can be seen to be operating responsibly. But, arguably, the current crisis may come to be seen as a pivotal moment for the way that these functions serve businesses:

“Covid has highlighted the need for brands to demonstrate their effort to stakeholder in vivid colour. This is potentially a chance for businesses to move to a model that better serves all stakeholders where PR & comms helps to implement these initiatives across all parts of the businesses rather than just amplify them to the outside world.”

– Caroline Coventry

There are clear execution “rules” right now but are they over-used?

As well as reviewing their overarching comms strategies brands are urgently having to address issues around messaging execution right now? What is the right amount of messaging to avoid overload? How do you strike the right tone of voice? How are channel choices hit by this unusual situation? What is the best balance between internal and external comms?

Over recent days a supercut (compilation) video has been heavily viewed and discussed among the marketing community (link). Titled “Every Covid-19 Commercial is the Same”, it suggests an over-reliance on certain codes or conventions of communication, such as:

  • Sombre piano music
  • Footage of empty public spaces
  • Pleas to heritage
  • References to people and family and home
  • Descriptions of difficult, troubling, challenging, trying, uncertain, unprecedented times
  • Staying together, connected, close while apart, separated, distanced
  • Being thankful, grateful, appreciative of key workers
  • Claims that “we’re here (for you) to help” or that “we’ll get through this together”

In the same way that clichés only become clichés by repetition, these codes reassure that concerns are shared and that corporations are responding. Moreover, such approaches have been tried and tested over past crises going back to WW2 (link). We don’t advocate for their use, nor avoiding them. To be effective at this time, advertising must strike a blend of fitting in with the prevailing mood (and that may mean adopting some of these well-worn tactics), but also staying true to your brand’s essence and vision.

“What we should be asking whether what we’re saying offers some form of utility or reassurance right now. Authenticity has become a bit of a cliché on comms over recent years, but it is still the most important thing right now along with simplicity and acknowledging our vulnerabilities.”

– Phil Bloomfield

Leveraging the credibility of senior leaders

We’ve seen a variety of different approaches from companies when it comes to using the charisma, fame in some cases, and gravitas of their senior leadership. There is no one-size-fits-all approach to this. But leaders do have a vital role, certainly within businesses, in providing reassurance. This doesn’t automatically mean the CEO/MD. This activity is the responsibility of the entire senior leadership team. Their expertise is crucial in answering various comms challenges. As opposed to automatically defaulting back to the most senior title in the room.

“Without your employees, you don’t have a business, so internal comms needs to be prioritised at this time. Senior leadership in a company need to step up and take a lead in providing the reassurance that people need.”

– David Cook

The primary need here is to provide reassurance. To achieve this, leaders must be visible, and available, for staff (and sometimes the wider world too). They must be empowered with the right information and tools. It is not necessarily about having all the right answers. After all, so much of the now and next is shrouded in uncertainty. Simply being seen and being supportive goes a long way.

“We’re all human and we’re all affected by coronavirus and that has made it easier for seniors to present themselves to colleagues in a much more visible, accessible, informal and human way. That’s something that customers are quite keen to see too”

– Caroline Coventry

Too early to see the way ahead

With the current situation being so dire, it is only natural that thoughts are already turning to afterwards within businesses. While there is a lot of conversation around “business as usual”, “getting back to normal” but also warnings of a radically different “new normal”, it is too early to say quite what will come next or, therefore, how we should prepare for it. Under these circumstances, the best strategy is to undertake scenario planning to identify a range of possible futures and to put mitigation strategies in place for each.

Whatever the future looks like, and of course we’re all hoping it will be full of positives, businesses will still need to ensure that they have their customers best interests at heart and that they can continue to communicate effectively with them:

“It’s going to be a very gradual process. However, I do think we’ll see a lot of improvements in how brand managers and comms professionals are seen and heard within the organisation and how we affect change.”

– Caroline Coventry

What next?

For a deep dive into how scale-ups, in particular, are managing their reputation in this turbulent market, check out our next webinar here.

Written by Nick Chiarelli, Head of Trends at Unlimited Group, this article originally appeared on the Unlimited Group news page. This is the third instalment of our ‘Pivoting in Crisis’ webinar series. Explore the highlights from our first event on workplace behavioural change, and our second event on technology and Covid-19. Or click here to see the recent work we’ve been doing to support our clients’ reputations throughout the crisis.

Related articles:
Pivoting in Crisis: The role of technology
Pivoting in Crisis: Workplace behaviour change

 

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Scale Ups: Managing reputations in a changing marketplace

Team working in an office sat at desks

Scale-Ups: Managing reputations in a changing marketplace was held in partnership with Angel Academe. The panel comprised of Sarah Shilling (CMO, Unlimited Group), Rachel Jones (CEO, SnapDragon), Charlie Davies (co-Founder and CEO, TravelTime), Mel Varley (Investor & Advisor, Angel Academe) and Tim Lines (Director, Nelson Bostock Unlimited). They discussed how scale-ups are managing their brand reputation through the current pandemic, and what the coming months look like for these businesses. 

A very challenging climate for scale-ups 

The last six weeks have presented scale-ups and start-ups, as-well-as society as a whole, with rapidly changing markets and prospects. Some lucky firms have found their business models to fit perfectly with the new climate. However, others are either struggling or rapidly trying to adapt.  

To some extent, scale-ups face the same challenges as other more established businesses. The balance must be sought between proactive and compassionate customer communications and being seen as merely contributing to the noise. We’ve also seen the sector adopting brutal cost management exercises. It’s challenging to ensure such measures have little impact on scale-ups’ functionality or their attractiveness to investors. Like some of their bigger counterparts, scale-ups are having to recognise that we live in a time of unprecedented uncertainty. Even more so when you consider the long-running Brexit saga. This uncertainty is forcing scale-ups to modify their planning. This is in terms of timing (accepting that aspirations may be feasible but not in the timeframe previously envisaged) or sometimes direction (a more profound realisation that future demand may look quite different from assumptions of the business model). 

“You need to make sure that you are still the same business that you were before but that you’re ready for the new normal, although there is lots of discussion about precisely what that means.” 

Charlie Davies, TravelTime 

However, there are some significant differences too, both positive and negative. On one hand, start-ups, and scale-ups, by their recency, have less resilience in the form of cash reserves. We’ve seen some start-ups delay raising funds as they deal with the current situation. However, there is still an appetite among the VC community to invest in the right opportunity: 

“Entrepreneurs are still coming forwards, even now and there is the money to invest in them. A recent survey of our network of investors found that 75% of them were cautiously open to investing. However, valuations may indeed be lower right now” 

Mel Varley, Investor & Advisor, Angel Academe 

However, on the other hand, in many instances, we have seen both start-ups and scale-ups eclipse large businesses for their speed to innovate and their ability to pinpoint a solution to a single challenge individuals and organisations are facing: Uber Eats was praised early in the outbreak for rapidly flexing its business model by waiving fees to small restaurants; Pesky Fish had to move from delivering to restaurants to delivering directly to customers, and  Stitched  had to replace its normal factory facilities for producing bespoke curtains to hiring an army of home-based workers to do so. 

“There’s been an unprecedented impact on not just employees but the whole value chain. Some businesses have halved their business costs within weeks, while others have had to pivot. Those that are most agile will do best.” 

Mel Varley, Investor & Advisor, Angel Academe 

 Scale-up communication right now must focus on the basics 

It’s tempting to say the rules no longer apply during a crisis. How many times have we heard the word “unprecedented” in recent weeks?  In reality, though, the normal rules do apply: understand your customers, be true to them, to yourselves and your long-term goal. Similarly, while there is a natural inclination to hunker down and wait until it’s over, driven by misjudging the mood, or making a misstep, businesses need to communicate even more in a crisis. The key point is to make sure you have something useful to say and say it. 

“There’s no playbook for this. No-one saw this coming. Given that, brands have no option but to go back to core principles. They must understand the world around them, the context and think about how their audiences are impacted by COVID-19” 

Tim Lines, Nelson Bostock Unlimited 

 “For investors, it’s the same as it is for consumers. The businesses that are communicating and engaging more effectively are the ones we’re more likely to follow through on and respect. Many B2B businesses I invest in are spending more time and money on retention right now rather than on acquisition.” 

Mel Varley, Investor & Advisor, Angel Academe 

Authenticity is even more important when it has a natural link to either your brand positioning or product offering. Moreover, if you operate in markets where opportunists have been exploiting the vulnerability of consumers: 

“If you find you have fakes in your supply chain you need to be honest with your suppliers and customers. We’re often helping people realign supply chains. While fakes may feel embarrassing, there is nothing to be ashamed of. It happens to the best of us: it’s just so important to be honest” 

Rachel Jones, SnapDragon 

Finally, be helpful. Where appropriate, make your product, thinking or expertise available to others. However, it’s important to note that we are not talking about those businesses who are essentially using COVID-19 to be seen to be doing something nice when leveraging the crisis to offer a freemium entry route to their subscription models. We’ve seen a genuine uptick in acts of kindness between people. Brands have a part to play here as well. But this is provided their motivation is to be part of the solution, not to cynically highjack consumer sentiment. 

 Planning for scale-ups: the next three months and after 

Everyone accepts that planning for the future is incredibly difficult at the best of times, let alone in the midst of the greatest global health crisis in living memory. And yet, businesses have to plan. Scale-ups face challenges because of their position in the lifecycle. They aren’t starting out or established businesses. The scale-up phase is all about progression, direction and momentum. Scale-ups must remain upbeat if they are to avoid being impacted by an inability to plan. Then, they must express confidence about the future, even in unforeseen situations and complicated trading conditions. All we are talking about is a delay to your plans, not cancelling them: 

“We have to live with optimism. We have to look up and out – and seek opportunity – there needs to be consistency of excellence. Don’t just dream in English – look beyond these shores for opportunities and exports, new things you can do – as well as for potential threats. I recently watched Kinky Boots on the iPlayer, which is all about how a shoemaker in Northampton diversified creatively – and it’s a great example.  Many of us are right here, facing adversity. But we need optimism right now, and every day, to ensure progress.” 

 Rachel Jones, SnapDragon 

The watchwords for today are traits such as agility, flexibility and adaptability. Survival of the fittest doesn’t mean the strongest should survive. It means that those who are best suited to the environment and can rapidly adapt will survive. This has never been more apt. Scale-ups should have plans in place. However, they must review them frequently in the light of the best available evidence-based understanding. Not just of what is happening, but why it is and what that says about changing consumer needs: 

“I’m sure that all of our plans in the next three months will change and will look different from what you had planned to execute. Shortening the feedback loop is critical at the moment, but not to the point where it feels scatty or reactive to your team.” 

Charlie Davies, TravelTime 

This flexibility needs also to extend beyond the walls of the Zoom calls with your team. Scale-ups cannot afford to be proud right now. They need to be able to acknowledge where they need help and advice and seek it out, though appropriate networks (such as Enterprise Alumni), and, of course, be receptive to requests from others that they share their expertise too. The trick here is to seek out the best advice, use it to make plans, but to make those plans as resilient, self-contained and flexible as possible. The clearer the vision for the brand, the easier it is to keep in mind as you progress:

“Try to be as independent and self-sufficient as possible and not be reliant on what others, even the Government, say. Wherever possible make your plans as internally focused. Make them as dependent on what you can do, or want to do, as you can.” 

Charlie Davies, TravelTime 

“Businesses must adapt in the short-term and be ready to get going again as soon as the crisis passes. We can’t be unprepared or three months behind. Part of this is to avoid making rash decisions in the short-term. Instead, ensure that your choices can flex to the realities of today. but are true to business’ longer-term vision.” 

 Tim Lines, Nelson Bostock Unlimited 

In summary. While the current climate is uniquely challenging for scale-ups, as it is for everyone else, they must ride it out. They must remain true to the longer-term vision they had when they first started their business. They can achieve this by adopting short-term flex strategies to mitigate some of 2020’s unique challenges. 

What next? 

This article was written by Nick Chiarelli, Head of Trends at Unlimited Group, and originally appeared on the Unlimited Group news page. See the recent work we’ve been doing to support our clients’ reputations throughout the crisis here. 

 

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Five Reasons to Believe in UK fintech

Fintech graphic

In January, the growth of UK fintech looked unstoppable. 2019 saw huge levels of investment. We were set for another record-breaking year in 2020. That was until Covid-19 threw the world into disarray. So what does Covid-19 mean for UK fintech in the long term? Is it fatal? A bump in the road? Can the sectors’ strengths see it through?

We see plenty of reasons for optimism. While fintech has taken a few hits, it’ll take more than Covid-19 to damage the UK’s lead. Here are five ways in which fintech will bounce back.

UK Fintech made a strong start to the year. Confidence remains high

Early progress at the beginning of 2020 put UK fintechs in a strong position. In the first half of 2020, UK tech businesses raised more than $5bn in investment (Tech Nation and Dealroom). That’s more than the rest of Europe combined. London’s fintech firms alone took $4bn.

The argument is even stronger when you consider the pandemic struck the UK around halfway through this time. Before widespread lockdowns the first quarter was impressive. Beauhurst reported 112 deals totalling £1.1b. We saw businesses at all stages of maturity raise funds. From small, early-stage deals, to big-money deals like Revolut (£383m), iwoca (£85.6m) and Starling Bank (£40m).

Thanks to some eye-watering investment rounds and valuations, such as payments start-up Checkout tripling its valuation during the lockdown, the media narrative has been overwhelmingly positive. UK fintech is seen by many as a source of strength and national pride. This industry is buoyant and expectant. Amongst key commentators and the industry itself, we can see that confidence remains unchecked. That is very exciting.

Fintech weathered the storm

Unlike retail and travel, which were hit hard and are slowly recovering, most fintechs continued to operate during the chaos. In fact, many have become even more essential. For example, digital payments and online shopping have soared during the pandemic.

Research from Beauhurst also supports this observation. Only 1% of fintechs have been critically affected by Covid-19 and 2% severely affected. In the wider ecosystem of high-growth companies, 17% of businesses fall into these categories.

At the same time, jobs in fintech are also less at risk than other industries.

There are a few reasons behind these stats. Most fintechs are agile, digital and creative. This adaptability makes them more able to handle black swan events like Covid-19. Another consideration is that some of the hardest-hit industries are consumer-facing. Many b2b fintechs provide back-end or infrastructural services. This means they haven’t been impacted as badly.

So even during the crisis, fintechs continued to operate. When other industries have fallen down. That simple fact is critical.

Covid-19 has also seen accelerated adoption

Covid-19 has expedited the need for businesses to adopt digital services. Tim Levene, CEO of Augmentum Fintech, has perhaps put this best in Altfi: “The macro story has been the acceleration in digital adoption, and behaviours that would have taken two to three years to change, have changed in the last two to three months.”

The pandemic has shone a light on fintechs’ ability to bring operational efficiency and support customer acquisition using digital methods. These are key aspects to driving greater uptake of their services. Covid-19 has accelerated this pre-existing transformation trend. This is especially true for traditional financial institutions. They have been clutching on to legacy systems for some time. What happens if you pour petrol on a fire? We’re about to find out.

And for some, demand has grown

The net impact of Covid-19 on UK industries has been negative. However, some fintechs, whose services help solve problems raised by the crisis, are experiencing a significant uptick in revenues. Few businesses can hope for the extreme windfall that Zoom has enjoyed in the wake of Covid-19. To underline this, Zoom’s $328m revenue in February-April was more than double what it took in from the same time in 2019. Klarna, for example, has seen a 20% increase in new UK merchants in April. Meanwhile, Checkout hit a 5.5bn valuation this June.

You can see success in specific sectors:

  • Lending platforms for small businesses, such as Funding Circle and Tide, have experienced a massive growth in new loan applications. This is due to the new, less certain economic climate
  • Payments companies and platforms, such as Checkout and Apple Pay, have seen surges in demand. These have been largely driven by the massive increase in SaaS use and contactless payments. Alongside companies taking their business online
  • Insurtechs, such as Lemonade or Floodflash, which provide transparent and immediate payouts, are garnering increasing levels of trust and experiencing higher demand. This is due to various consequences of the pandemic. For example, job losses, business defaults and catastrophe-related impact
  • Enablers of Digital transformation, such as Nucoro and Thought Machine, that support financial firms’ digital transformation initiatives will be crucial to equip these businesses for the new wave of digitisation precipitated by the current climate
Culture breeds success

Culture has become a key strength for UK fintech. Born into the digital age, many leaders built their companies with culture front-of-mind. Sifted’s survey of Glassdoor reviews found the majority of the best-known fintechs sit above the global average Glassdoor rating.

Driven by competition for talent in a crowded and fast-growing space, culture has been a battleground. One in which fintechs consistently outperform traditional banks and financial services organisations. The result has been the emergence of more dynamic and supportive working environments. These are places in which values align to customer wellbeing. This culture makes it more likely to withstand, pivot and thrive in a global crisis.

So there you have it. Covid-19 has shaken almost every industry. But here are still reasons to believe in UK fintech. Now is the perfect time for fintechs to show their strength, resilience and willingness to support others. External communications can bring long-term benefits to relationships and reputations. It can also help the sector sustain its success.

Written by Tim Lines, Director at Nelson Bostock Unlimited

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UK fintech must continue to build trust to take centre stage

This year will go down in history. After three months of lockdown, the world we re-enter will be very different from the world we left behind. There are a lot of lessons we can learn from the experience. Not just about handwashing, but also about how to handle a crisis. We’re aware (if we didn’t know before) that communication – from the government, from health bodies, from the businesses we rely upon – becomes critical in a crisis. It is how trust is built and maintained. No business has been untouched by Covid-19. But some sectors – like fintech – have responded brilliantly during this pandemic. While it is easy to get carried away, that ascent is certainly not guaranteed. UK fintech must continue to build trust if it is going to maintain that momentum.

From crisis to recovery

It is tempting, during turbulent times, to close down comms until the storm passes. But, as demonstrated by the last few months, the organisations that came out well from Coronavirus are those that pitched-in, supported people, and continued to communicate.

My view is that trust is the most important factor at play. While supermarkets and the NHS understandably receive the most praise amongst consumers, Telecommunications and Banks / Financial organisations who have supported people and businesses follow closely behind. Fintech organisations played a role in that success. Whether you are a consumer wanting to check your account or make a payment, or a business in need of a loan, fintech players have stepped up.

There are some great examples of both trust-building and great comms from the fintech world. Facing their financial difficulties internally, the then CEO of Monzo Tom Blomfield waved his annual salary for 2020. Meanwhile, Oaknorth has shown its support for small businesses, lending earlier than other neobanks and approving more than £60 million in new loans to UK businesses, in addition to £36 million of its initial £50 million allocation through the Coronavirus Business Interruption Loan Scheme (CBILS).

They helped a creaking world keep turning and have, as a result, earned significant levels of confidence. For fintech firms, it is crucial to continue this trend and maintain their image as a force for good. Successful comms isn’t just about telling proactive stories of course; it’s also how you handle yourself under pressure. Tide recently received a, well…a tide, of complaints from anxious customers waiting on Bounce Back Loans. However, by being honest, empathetic and fast to respond, Tide was able to manage the story effectively.

Adapting to an agile world

As the world changes from week-to-week, brands need to adapt to the outside world. So much has been made of dramatic and exciting pivots by businesses (i.e. GIN COMPANY MAKES HANDWASH AND SAVES THE WORLD!). But if you look beyond the headlines, you’ll see that business strength comes from being able to respond quickly.

That is just as true for comms. The media landscape has shifted massively in recent months. Many nationals have made significant staff furloughs, pushed back editorial meetings to allow for childcare, and placed a greater focus on online news. In the fintech trades, editorial teams are short on numbers and working flat out. You are going to have to adjust your stories and tactics. What would’ve worked six months ago won’t work today. You need to watch and listen and adapt. And, where possible, comms should help to shape business strategy.

Build your brand

The UK went into 2020 as the world leader in fintech. More innovation. Greater investment. A higher amount of talent. Then the pandemic hit and everything stalled. In a destabilised world, customers want financial brands that they can trust. Building trust isn’t just about doing good things; you need to communicate them. To trust a brand, your customers have to hear your voice, and that voice has to be authentic, honest and transparent.

Fintech brands have an opportunity to take centre-stage and lead the UK’s recovery. But to do that they need effective, agile and bold comms that can establish a brand voice which customers, partners and investors can trust. Do it well and the trust that you build in a crisis can carry a brand’s reputation for years to come.

Written by Tim Lines, Director at Nelson Bostock Unlimited

 

 

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You must understand what’s shaping UK Fintech if you’re going to plan PR effectively

Fintech continues its march forwards. There are lots of great success stories; fuelled by innovation, growth and a very real market need. Just consider the recent Sunday Times’ Tech Track 100 which follows Britain’s fastest-growing, privately owned tech companies. If you look beyond the obvious big hitters – Revolut (1), Checkout.com (55), TransferWise (64) and our client GoCardless (61) – you can see the strength and momentum that exists within UK Fintech. Lendable is showing annual sales growth of 180% and is still innovating. It recently launched its first credit card, while car finance is expected to follow. While other top 100 companies – OakNorth, Lending Works, Global-e and gohenry – appear stronger than ever.

Despite the challenges presented by the pandemic, fintechs have played a critical role in keeping the economy (and our everyday lives) moving. Whether that is helping companies access funding or people to access digital banking, that optimism is clear to see. But the future is never certain. There will be more challenges ahead. Just ask Monzo and Klarna who are facing criticism for mounting losses.

For PR, that can be a real challenge. While Fintech brands may have an opportunity to take centre-stage, they need to continue to invest in and build communications. I don’t mean spend more money, but rather think clearly and do the basics really well.

I have been asked: “How do you plan for comms when everything is so unpredictable?” My answer is to focus on the things that you know are true. Understand the world around you and continue to build your narrative. While constantly identifying opportunities (or threats), and not being afraid to react quickly to any changing situation. Good or bad.

That question is the reason we created a planning handbook; to help all fast-growth and scale-up Fintech businesses navigate those changes. Not only that, it helps these brands to look past the noise and focus on the stories they need to tell.

The Fintech PR Playbook lays out five big macro trends shaping the world; five big media topics driving the debate; as well as five key and influential journalists shaping opinions. We’ve identified some of the major forces shaping the industry and, in turn, influencing comms. You can download the Playbook here.

Our hope is that its assurance cuts through some of the uncertainty out there. We’d love to hear what you think; how you’ve used it; and if it was useful. Please get in touch.

Tim Lines, Director, Nelson Bostock UNLIMITED

 

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Crises change investment habits and create opportunity for Wealthtechs

Personalised investments opportunity for wealthtech

Last week, we launched a Fintech PR Playbook, looking at the key trends, topics and media that are shaping UK Fintech, to help businesses plan their strategies for the next six months and beyond. We are passionate about the sector – which is showing great promise to bounce out of the pandemic – but we recognise that fintech isn’t one industry. Rather, it’s an umbrella term used to showcase the best of financial services firms that utilise technology to provide adaptable and best-in-class services. The Wealthtech sector is a perfect example of an industry that is successfully leveraging technology to shake-up traditional investment services models.

As outlined in our Playbook, getting on the investment ladder is becoming progressively easy for the everyday consumer. As interest rates remain at a record-low, leaving limited options for us to grow our capital via traditional means such as savings accounts and ISAs, Wealthtechs, such as Wealthify and Moneybox, have capitalised on the opportunity to give everyday consumers more options. More options – catered for everyone regardless of financial acumen or status – brings with it more investors. And more investors, of all generations, brings greater diversity of values and demands.

For example, not only are we living through a health crisis right now, but we’re also living through other crises. Just think about systemic racism and climate change. Younger generations have been at the forefront of protests and movements to try and drive change. And this is reflected in investment behaviours too – with Environmental, Social and Governance (ESG) becoming ‘officially mainstream’. As regulatory discussions around benchmarks continue, ESG scoring will become much more standardised. But on an individual level, what’s considered socially responsible to one person, might be different to another. For example, the once cherished vegan milk brand, Oatly, is now facing boycotts over selling a stake of its business to Blackstone, a private equity firm headed by a Trump donor that is allegedly contributing to deforestation in the Amazon.

The need for hyper-personalised investments is greater than ever before. And technology plays a key role in making this a reality, with solutions that utilise data and machine learning to invest or divest based on personal values or preference. Wealthtechs, then, whose business models are often built without the constraints of legacy systems, have a great opportunity to flex and adapt according to the individual demands of this new wave of investors.

In terms of media, there has been a lot of scepticism about ESG due to the lack of standardised benchmarks, as well as the lack of transparency – for example, with companies criticised for ‘greenwashing’ or ‘wokewashing’. But many publications now have dedicated ESG sections, which demonstrates that the topic is here to stay.

There is still a great opportunity for Wealthtechs to communicate that they understand the changing demands of all investor demographics on an individual level, as well as how they are leveraging technology to meet these demands. It’s also a good opportunity for Wealthtechs to communicate their own ESG credentials – for example, showcasing corporate diversity by leveraging diverse spokespeople from a variety of backgrounds, as well as providing any stats or proof points that highlight their efforts to do business in a sustainable way. We can expect the media to continue reporting on topics such as hyper-personalisation and ESG, for the remainder of this year and beyond.

Wealthtech funding more than doubled in Q2 2020 – so clearly there is a lot of room for growth and maturation in this sector. I’m excited to see how Wealthtechs will continue to flex their services, to ensure investments reflect the growing demand for diverse values and positive contributions to society.

Sofia Romano, Account Manager, Nelson Bostock – an UNLIMITED agency

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What the BoE interest rate decision means for the future of savings

bank of england interest rates savings

Today, the Bank of England (BoE) announced its latest decision to hold interest rates at 0.1%. While this move is not a shock, it leaves little hope for the consumers wanting to grow their capital. So what does this decision mean for the future of savings? As it turns out, our newly launched Fintech PR Playbook has some answers.

As we highlighted, the UK is living through a long stretch of record-low interest rates, which has put a big strain on an already struggling savings culture. In addition to this, a perfect storm of social, political and economic factors including the rise of consumerism, the widening availability of credit, as well as the loss of trust in banks and other financial institutions, has transitioned the UK from a nation of savers to one of debtors. 

One positive outcome of COVID-19 is the potential reversal of this trend once again, according to Natwest, with more consumers holding on to their cash for fear of economic uncertainty. However, with interest rates sitting at an eye-watering 0.1%, consumer attitudes towards saving for personal, financial gains are still discouraging. And this is expected to continue throughout this year and potentially beyond. 

The global economy will almost certainly take a severe hit from COVID-19. According to a new report from Unlimited Group, Winter is Coming, we’ll see an estimated 6% contraction in 2020. There have been considerable debates concerning the speed of the world’s economic rebound, with the more optimistic thinkers looking towards the end of 2020. However, the more pessimistically-minded are predicting global recovery to occur as late as the end of 2023. This could mean that low – and potentially negative – UK interest rates are here to stay.

The good news is that economic dips often bring with them great opportunities. In fact, the first wave of Fintech was born out of the 2008 financial crash, which proves the sector’s ability to adapt and thrive during a downturn. In our current crisis, Fintechs have a clear opportunity to disrupt savings with innovation.

In recent years, we’ve seen a lot more players flooding the marketplace, often offering better interest rates than those offered by banks. For example, Marcus by Goldman Sachs has provided consistently competitive rates for savers, while start-up Zeux announced its offer of 5% interest rates at the start of the year. But besides better rates, Fintechs have made it their mission to get the nation saving again – with the likes of Monzo encouraging customers to Save at Home by moving extra funds saved into a new savings pot. 

So while the economic outlook is seemingly bleak, there are many reasons for Fintechs – and consumers benefiting from their services – to be optimistic. Saving remains a key area that is ripe for disruption, so we can expect to see new and improved offerings continuing to flood the marketplace. As we move through economic recession and look towards life after the pandemic, Fintechs can help the UK become a strong nation of savers once again.

Nick Chiarelli, Head of Trends, UNLIMITED Group

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As we start to recover from COVID-19, can banks drive the innovation in digital identity that we so desperately need?

digital identity

The COVID-19 pandemic has dramatically accelerated the adoption of digital financial services. The use of banking apps has rocketed as consumers ditch the traditional bank branch. Consumers have also embraced contactless payments, as COVID-19 throws cash its biggest challenge yet. And, more generally, our changing environment has resulted in more openness to digital services (as outlined in our recent Fintech PR Playbook).

But digital identity is still waiting to take off in the UK. As we increasingly rely on digital services during the pandemic, our banks, retailers, and other critical service providers urgently need a way to digitally establish we are who we say we are. This is a massive opportunity for fintech. So if COVID-19 provides the ‘need’ for greater digital identity services, who will drive innovation?

The UK’s digital identity crisis

Recent research from Nomidio, a biometric identity service provider, found that of the one in seven UK adults who have had to confirm their identity digitally during lockdown, 49% were asked to email sensitive documents such as passports. Our reliance on presenting paper-based documents such as a passport or driver’s license is inconsistent with our new digital expectations. Not to mention how practices like this only add to the growing threat of identity fraud that already exist in the UK.  A digital identity solution is long overdue.

But the UK hasn’t had much luck so far. Plans for national ID cards were scrapped in 2010 after concerns of how the data would be used. And the Gov.UK Verify programme has faced years of scrutiny after failing users and a lack of uptick.

In other parts of Europe, such as Norway and Sweden, nationwide electronic ID (eID) schemes exist and are used by large swathes of the population. Citizens use them every day for all manner of tasks – from logging on to their bank, to purchasing age-restricted products. Last month, it seemed like the Government might be finally making progress towards a new digital ID scheme. However, the UK Government’s plans have already come under fire for lacking actionable outcomes.

The opportunity for banks and fintechs

While a nationwide scheme must be the long-term aim, the Government’s plans are still a long way off. There is an urgent demand for a solution now, but this responsibility doesn’t need to fall to the Government. Banks are well-placed to take the lead on digital identity, as it is intrinsically linked to their services – whether you are opening a bank account, applying for a mortgage, or paying your bills. There are also countless studies that show when asked who they trust with their identity credentials, consumers always rate banks top; and above governments.

Banks have an opportunity to become custodians of identity. But they likely are going to need support from the number of identity verification providers working in the financial services space. Some are even creating their own solutions. Earlier this year, Onfido successfully tested a portable digital ID, which lets consumers securely re-use their verified digital identity to access a range of service providers, all controlled from their smartphone.

UK banks might have the scale, consumer trust and the brand, but they can lack flexibility, speed and innovation – something fintechs have in absolute abundance. Joining forces is not just a smart play; it could give digital identity its rocket launch moment.

Nicole Louis, Account Manager, Nelson Bostock – an UNLIMITED agency

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7 must-read inclusion articles, for Fintechs and beyond

As we look back on UK national inclusion week and see a terrific recognition of Black History Month, we need to remember that Diversity & Inclusion is something that we need to constantly work on, and constantly improve. 

We highlighted in our Fintech PR Playbook that diversity presents both a challenge and opportunity for fintechs – whether demonstrating diversity of spokespeople, or on a more granular, topical level such as technology bias. It’s something that we should all be thinking about and communicating everyday. A week here and a month there just won’t go far enough!

So, for fintechs and all businesses, below are some of our favourite articles to read… not just for today, but all year round.

1.

Ethnic minority employees face ‘psychological burden’ of fighting racism at work | Metro

Natalie Morris, Senior Lifestyle Reporter, Metro warns that while awareness initiatives can have a positive impact for companies, implementing new D&I measures can also create a disproportionate burden for Black, Asian and ethnic minority staff members. Her article highlights the additional responsibility for these staff members on top of their regular workload. It’s something we all need to be mindful of as we continue to push D&I initiatives forward.

2.

Women in fintech series | The Fintech Times

For September, The Fintech Times celebrated women in fintech with a wealth of interviews with leaders across the fintech industry that are worth reading. Beginning with an article that asked – where are all the women in fintech? – this campaign interviewed the likes of Marieke Flament, CEO of Mettle and Sophie Guibaud, Chief Growth Officer at OpenPayd. It also actively championed inspirational LatAm and MEA women in fintech through interviews, such as the Nigerian national and current resident Bunmi Lawson, Managing Director/Chief Executive Officer of EDFIN Microfinance Bank Limited, as well as Monica Saccarelli from São Paulo, Brazil, the CEO of Grão. 

3.

Diversity And Inclusion: Why You Should Never Ever Make These 6 Mistakes | Forbes

Forbes contributor, Carmen Morris, wrote an article highlighting the six mistakes you should never make when it comes to racial diversity and inclusion in the workplace. You need a fully engaged leadership team, you can’t recruit over the cracks, and we all have biases / don’t ignore lived experiences, are just three of the powerful lessons featured.

4.

3 ways to start being an ally to Black people | CNBC

New York-based Catherine Clifford, Senior Entrepreneurship Writer at CNBC, interviewed Michael Tubbs, a 30-year-old Black mayor of his hometown, Stockton, California. Tubbs lists three ways to be supportive allies for black people: Be anti-racist, talk to family and friends, be politically anti-racist. 

5.

Creating a Trans-Inclusive Workplace | Harvard Business Review

“Despite a growing global awareness of the struggles trans people face, many employers remain ill-equipped to create the policies and workplace cultures that would support trans employees.” Christian N. Thoroughgood, Katina B. Sawyer and Jennica R. Webster list four practices that employers can adopt to help create a trans-inclusive workplace.

6.

How can we really make European startups more diverse? | Sifted

Sifted interviews entrepreneurs across France, Spain, Germany and the UK, about the challenges faced by people of colour in the tech industry, and how we can overcome them. It asks, “How can we change attitudes and inclusion in an industry that, while claiming to be determinedly modern and cutting edge, is so woefully backward when it comes to the diversity of its workforce?” 

7.

Fintech Equality Coalition Engages Black Fintech CEOs | Forbes

“Frequently, questions about diversity in fintech center on gender diversity, and that gender diversity means ‘white women’.” Dahna Chandler, Contributor and Daphne Foreman, Editor at Forbes, highlight some initiatives taking place at companies to tackle this issue, and provide a list of black-owned fintech companies that you can support.