Negative public opinion is perceived by financial services firms as a key challenge for them to tackle over the next year, according to a study commissioned by Makovsky + Company, a financial services communications firm.

And while some in the industry have voiced concerns about new regulations hitting profitability and costs, the Makovsky Wall Street Reputation Study shows that, on the other hand, 74 per cent of respondents think such regulation will help them improve their reputations and regain public trust more quickly. In other findings, 81 per cent are concerned about the impact of executive remuneration on public opinion.

The survey highlights how financial services have taken center stage in media and politics in recent years, particularly as regards issues such as the concept of fairness, as well as inequality. This is most manifest in the “Occupy” movement, which 53 per cent of the survey's respondents thought had had a “real impact on their business.” Of the executives surveyed, 71 per cent expect the movement to last beyond the presidential elections.

When asked about the PR performance of the overall industry, over half the respondents graded it as either “average”, “below average” or “failing”, while at the other end of the spectrum only 9 per cent thought the industry's image was “perfect.”

Some big-name banks were identified in the survey as leading in the corporate image stakes within the industry. These were Wells Fargo (cited by 36 per cent), Bank of America (35 per cent), Citibank (27 per cent) and Chase (12 per cent).

“While many of these institutions have had prominent public relations challenges, they are the ones which have been the most visible in addressing their constituencies,” said Scott Tangney, executive vice president and head of the financial services practice at Makovsky. “We believe that this proactive approach has boosted their image among industry peers."

Meanwhile, over half of marketing and communications executives interviewed in the study felt their social media activities had only had a “neutral” impact on their reputation so far, while 40 per cent saw it as having a positive contribution.

“We see social media as an emerging communications channel and solution for financial services firms, and with regulatory bodies continuing to soften guidelines, social media will grow in importance, especially to improve public perception and connect with customers,” said Tangney.

The study, completed by Echo Research, included 150 interviews with personnel responsible for the management and supervision of communications or marketing at large and mid-sized publicly-traded and private financial services institutions.