In Reputation Risk, a run on a bank is what bankers fear the most. This is when customers lose confidence in the bank due to transgressions, rumors or other reasons.
Too many depositors removing funds at the same time can cause a bank’s demise. Today the tools exist with which damage can be caused quickly and efficiently. The example below serves as a warning and a reminder that online monitoring of your brand name is vital, and that strategies to dispel rumors need to be in place, so that an institution can communicate in nano-seconds.
Twitter message leads to arrest after ‘financial panic’
technology.timesonline.co.uk — A man has been arrested for inciting “financial panic” after he posted a Twitter message. Jean Ramses Anleu Fernandez urged people in Guatemala to boycott a bank in the aftermath of a political scandal. In his tweet under his twitter name ‘@jeanfer’ he proposed that people “withdraw cash from Banrural and break the bank of the corrupt”.