Baltic PR Awards 2012 Category: ISSUE AND CRISIS MANAGEMENT Organization: SWEDBANK Country: Latvia Project name: Biggest Latvian bank fighting rumours attack Place:1st

1. Category: ISSUE AND CRISIS MANAGEMENT
Swedbank (Latvia)
Title of Campaign
Biggest Latvian bank fighting rumours attack
Summary
November brings crisis in Latvian banking sector as Krājbanka crashes leaving people with limited access to
their money and larger deposits lost. Unsuccessful crisis communication renders people losing trust in banks
and being skeptical about statements of officials.
Just 3 weeks later another crisis is approaching – rumours from unknown sources are spread that Latvia's
largest bank with half of population as its clients is going down. People start queueing up by Swedbank
ATMs and some municipalities withdraw deposits. The stakes are high – if the panic spreads, it might
destabilize not only Swedbank, but Latvian economy as such. Team has less than hour to activate crisis
communication according to manual and start executing. It is Sunday, so communication is highly difficult,
and longterm investment in Swedbank's reputation pays off: media take supportive role, clients are hesitant
and waiting for situation development. Bank firstly addresses incoming client inquiries, meanwhile making
sure that cash is available at ATMs and branches are ready to work in situation of extreme client activity.
The crisis is prevented in 2 days and only 10% of clients react to rumours. Exceptional results in
independent reputation surveys prove that right crisis communication strategy has boosted Swedbank's
reputation.
Situation
November brings crisis in Latvian banking sector as Krājbanka crashes leaving people with limited access to
their money and larger deposits lost. Day before it happens officials and Krājbanka representatives claim on
media that situation is under control. Only 3 weeks later, on 11 December rumours from unknow sources are
spread that Swedbank is going down. People start queueing up by bank's ATMs. The stakes are extremely
high – if the panic spreads and withdraw of money goes beyond control, it might destabilize not only
Swedbank, but Latvian economy in general.
Objectives
Objectives of the crisis communication were:
Prevent deposit outflow
Minimize negative effect on bank's reputation
Prevent panic on social and mainstream media, as well as by ATMs
Crisis communication team had at its disposal internal case study of Krājbanka crash case prepared
before rumours spread, real time social and mainstream media monitoring was carried out. After
crisis bank engaged clients in research of “rumour anatomy”.
Clients and relevant state officials were selected as primary stakeholders. Employees, media and 3 rd
parties – as secondary.
Strategy
Strategy of crisis communication was highly impacted by Krājbanka case. Instead of justifying itself on the
media and addressing clients that might be unaware of the rumours, Swedbank first responded to client
inquiries directly showing its availability and making sure panic would not spread further. Secondly,
Baltic PR Awards 2012

2. Category: ISSUE AND CRISIS MANAGEMENT
Swedbank ensured that people could withdraw the money, but by doing so indirectly invited people to
rethink their action and share the responsibility.
Personal communication with clients was prioritized. Main channels used: bank's website, Swedbank client
managers and Twitter. In media communication key opinion leaders and stakeholders were engaged as
spokespersons, bank responded immediately to any inquiry, but bank's representatives appeared in media
when crisis was under control.
Criteria for evaluation:
- level of withdrawn deposits in comparison to average normal activity and longer term dynamics
- content of publicity
- bank's reputation according to independent research (Reputation Top, Most Loved Brands, Sustainability
Index)
Execution
4pm on Sunday crisis communication team gets to work. For each stakeholder group specialized
materials and communication approach developed.
Clients – updated information on bank's webpage, direct messages and individual replies on Twitter
Officials – direct personal contact
Employees – Q&A, guidelines for client managers
Media – immediate response, but involving 3rd parties and officials as spokespersons
ATMs are monitored and constantly filled with cash already on Sunday. Realtime information on
where ATMs are empty and when they will be filled provided on bank's website. On Monday
managers get in contact with clients, branches open earlier to minimize queuing outside. Swedbank
takes position that unbiased information and ensuring bank’s actual day-to-day operations is the best
way to dispel rumours. On Tuesday bank is back to business as usual. Later on a webpage “Rumour
anatomy” created to engage clients in reconstruction of how rumours had spread.
Documented Results
Crisis prevented in 2 days. Only 6-10% of clients moved money that constituted 100 million lats withdrawal
above average. Most of money returned to the bank in coming weeks and after 6 months amount of deposits
increased by 113 million lats. Trust created by more than 10 years reputation building was the key of
success. Within time limitations, it was impossible to convince all stakeholders about groundlessness of
rumours. Nevertheless, media proactively took supportive role and critical mass of clients were skeptical
about rumours. National TV news journalist claimed that “he sees these rumours as attack to Latvian State”.
Gold category at Sustainability Index, 2nd place on Reputation Top and 3rd place in Most Loved Brand survey
proved that Swedbank's reputation had benefited from successful crisis communication. Swedbank received
gratitude from the government and was asked to represent Latvia with this case at European Deposit Insurers
Forum in Geneve.
Baltic PR Awards 2012