A little less conversation

Customers and investors want action not words.

📸 Before we dive in, a flashback to issue № 61 in which I told you Twitter would turn its attention to payments. Well, this week the New York Times reports it has filed registration paperwork to pave the way for it to process payments.

👉🏻 Now, read on to learn why:

① Taking a stand can be a great way to differentiate your brand.

② Brands that jump on a cause must be able to substantiate their statements.

③ The distinction between TradFi and DeFi is all but redundant.

④ Total lack of client demand hasn’t stopped banks playing in the metaverse.

⑤ Increasing centralisation and shifting responsibilities trouble CMOs.

⑥ There can be a great life after finance.

⑦ Pride comes before the fall. 

What's new

① James Watt, the CEO of BrewDog, took to LinkedIn this week to launch the brewery’s World Cup marketing campaign. The backlash was swift.

• BrewDog’s campaign calls out Qatar's reprehensible regime by pointing to its bribery, repression of homosexuality, and deadly abuse of foreign labour. All important points that too many other cowardly brands have dodged.
• The company is also donating profits from sales of its Lost Lager during the tournament to human rights charities.
• The fly in this sports ointment, as CityAM points out, is that BrewDog itself “is not exactly squeaky clean itself when it comes to employee rights – with management having spent much of the last couple of years attempting to extricate themselves from widespread accusations of creating a toxic workplace culture. It also did not take long for social media to note that BrewDog’s decision to continue to screen the World Cup looked rather askew with its principles.”

Why it matters

BrewDog has a long and successful history of underdog, guerrilla marketing. It loves nothing more than to - in the words of Everyone Hates Marketers’ Louis Grenier - “stand the fuck out”. 

Although I don’t actually think BrewDog has done much wrong here - indeed, I’d argue it’s done a lot right - I flag the story to you because it illustrates how cynical people have become about brands jumping on social causes.

What to do about it

Take action

You don’t need my advice on this, just listen to Elvis: what customers and investors want from brands is a little less conversation and a little more action.

② We talked about this back in issue № 49: “if a brand is going to jump on a cause, it has to be able to substantiate its statements with facts.” 

Don’t even think about putting out statements on any cause unless your actions back them up. Run a good business, treat people fairly, and then, when opportunities like [the World Cup] come around, by all means go ahead and tell people about it. But action first. Always.

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Top stories

The other articles that are worthy of your time.

FINANCE

JPMorgan trade on public blockchain ‘monumental step’

③ The distinction between TradFi and DeFi will soon be redundant.

• “JPMorgan has used the Polygon blockchain to trade tokenised cash deposits — the latest instance of banks moving into DeFi markets. The public trade marks a milestone for JPMorgan, which maintains three private blockchains used regularly by its businesses and clients.”
• “This is not the first time banks have used permissionless chains, as a number of traditional financial institutions have been exploring blockchain technology to improve efficiency.”
• “The European Investment Bank launched a digital bond issuance on a blockchain platform in April 2021, deploying this distributed ledger technology for the registration and settlement of digital bonds in collaboration with Goldman Sachs, Santander and Société Générale. That same month, Société Générale issued the first structured product as a security token directly registered on the Tezos public blockchain — about two years after the company issued 100 million euros of covered bonds as a security token on the Ethereum blockchain.”

TECHNOLOGY

UBS and Julius Baer trial offering wealth advice in the metaverse

④ Total lack of client demand hasn’t stopped banks playing in the metaverse.

• “Two of the world’s biggest wealth managers are experimenting with switching client meetings from oak-panelled boardrooms to the metaverse, but have struggled to overcome data security and motion sickness.”
• “Wealth management is one of the last professional services to be disrupted by digitisation as the ultra-rich value personal interaction with their advisers when discussing their investments. But some wealth managers have begun investing heavily in technology in recent years to make sure they are prepared for changing demand.”
• “Julius Baer ran a 12-week pilot for a group of staff to hold internal meetings in virtual spaces, while 200 executives recently took part in a ‘metaverse experience’ at a senior global management conference.”

MEDIA & MARKETING

Big changes for CMOs and bank marketing teams in 2023

⑤ Increasing centralisation, shifting responsibilities and team expansion are keeping CMOs awake at night.

Gartner has identified three broad trends shaping financial service marketing in the U.S.:

• Centralisation - “60% of marketing organisations have centralised some or all functions into physical headquarters, centres of excellence or single marketing teams. The move to centralisation is meant to increase the quality and consistency of the work — including brand value, intellectual property and brand reputation — while reducing duplication and optimising the use of marketing technology. Many CMOs are combining market research, insights, business intelligence and customer/consumer insights under one umbrella as well.”
• Shifting responsibilities - “Though CMO-ownership of operations, strategy and marketing-led innovation is on an upswing — often by double digits over the last 12 months — CMOs are relinquishing resource management, creative development, content tagging, and martech management. 72% of the CMOs surveyed reported that they have more influence than their peers regarding business strategy, digital transformation, business growth and innovation.”
• Team expansion - “Six in 10 CMOs grew their function over the last 12 months — by 6.3 direct reports on average. This despite a 10% attrition rate and a scarcity of crucial abilities, including martech, digital commerce, digital platforms and media skills, creative talent, and industry knowledge.”

WILDCARD

UBS chief risk officer quits to become professional photographer

⑥ There can be a great life after finance.

• “UBS’s chief risk officer Christian Bluhm has resigned from the Swiss bank to become a full-time professional photographer.”
• “The unusual career change will lead to Bluhm opening a studio and gallery in Zurich’s historic centre, a short distance from UBS’s headquarters, as he swaps capital ratios for aspect ratios.”
• “Bluhm is following in the footsteps of Matthew Greenburgh, the former Bank of America Merrill Lynch dealmaker and adviser on the RBS-ABN Amro and Lloyds Bank-HBOS takeovers, who quit banking in 2010 aged 49 to pursue a career in photography.”

Off cuts

The stories that almost made this week’s newsletter.

FINANCE

👮🏻 UK regulation: 'call-in' powers could put market's international reputation at risk and is ‘completely throttling’ London markets says former exchange chief

🌖 Moonfare expands to offer investment platform for family offices

🥊 JPMorgan and Goldman Sachs in battle for British deposits

💻 Waverton poaches abrdn business development manager Nick Webb

🇭🇰 Hong Kong is ‘actively looking’ at authorising crypto ETFs

TECHNOLOGY

🥶 How UK fintech can survive a big freeze on funding

💒 PayPal and Apple to accept each other's payment products

🇪🇺 A digital euro: could protect euro dominance and may have transaction limits and store-of-value caps

🏠 Revolut wants to sell you your next mortgage

👏🏻 Charlotte Crosswell stepping down as Open Banking chair in 2023 to join Centre for Finance, Innovation and Technology

MEDIA & MARKETING

😌 Crisis communication: How to reassure clients in turbulent times

✍🏻 Nine benefits of using social proof in marketing

🙈 The top seven content marketing mistakes you need to stop doing today

💥 Zoom is coming to Tesla so you can Zoom in your Tesla

🏀 TikTok names ex-NBA CMO as global head of marketing

The last word

⑦ Sam Bankman-Fried, chief executive of FTX, talking to the FT last year:

“[buying Goldman Sachs and CME] is not out of the question at all.”

Also Sam Bankman-Fried but this week, the day before FTX filed for bankruptcy:

“I'm sorry. That's the biggest thing. I fucked up, and should have done better.”

About

Written for CEOs, marketers and other leaders in the financial sector, InMarketing This Week is a showcase for news likely to impact them - delivered with insight on why it matters and ideas on what to do about it. It’s published every Sunday to give you a head start on the week. Read it here, or subscribe to have it delivered straight to your inbox at six, before it's available anywhere else.