Financial services firms seeking to restore confidence in theirinstitutions need to work hard to communicate steps they are takingto address their difficulties, according to a survey of businessjournalists.

The poll was taken by Boston-based BackBay Communicationsmarketing and public relations firm and Marketwire, Los Angeles, acommunications workflow solutions provider and newswire.

The biggest communications challenges for firms in the next sixmonths are overcoming a credibility gap with their constituencies,managing crises and responding to regulatory changes, according tothe 109 financial journalists who participated in the survey.

According to respondents multiple choice answers, financialservices companies have an opportunity to rebuild trust anddifferentiate themselves in the current difficult climate by beingseen as financially sound (71 percent), honest and credible (69percent), and having their customers' interests in mind, (58percent).

"With the banking crisis, severe market downturn, hubris andoutright fraud dominating the headlines, there is a great deal offear and uncertainty that needs to be addressed through tangibleactions and clear and credible communications," said Bill Haynes,president, BackBay Communications.

Mr. Haynes said, "All financial services firms, regardless ofwhether they are having financial troubles, need to adjust theircommunications to address marketplace anxiety. Those firms that canoffer reassurance through words and deeds will be best positionedfor success."

The poll also found that business journalists viewed theirbiggest challenges as: getting financial services firms tocommunicate in a downturn (48 percent), finding the time andresources to cover the news (47 percent), and knowing who tobelieve, (39 percent).

According to the financial reporters polled, the most commonmistakes by financial firms that lead to negative media coverageinclude: failure to communicate newsworthy developments promptlyand honestly (79 percent), not responding to calls or e-mailsseeking commentary (76 percent), and evasive responses, (70percent).

"Today's corporate communication executives should highlighttheir company's unique developments and discuss strategies they areusing to deal with the economic downturn," said Michael Nowlan,president and CEO, Marketwire, Inc.

In Mr. Nowlan's opinion, "Press releases are a very effectiveway to maintain consistent, credible communications with allstakeholders at all times, but particularly during uncertaintimes."

The survey takers added that when communicating during a crisis,the most common mistakes made by financial services firms include:lack of communication (86 percent), not providing access to seniorleadership (61 percent), and incorrect or dishonest communications,(60 percent).

In crisis communications, financial reporters told the survey itis most important to communicate in a timely manner (89 percent),communicate honestly (85 percent), and provide access to seniorleadership, (67 percent).

Survey respondents said the best ways for financial servicescompanies to receive positive media coverage is through developingrelationships with reporters (78 percent), having companyexecutives available to discuss industry trends (78 percent), anddeveloping studies on marketplace issues, (58 percent).

The best ways for firms to communicate, according to thosepolled:

The primary sources for reporters' article ideas and best waysfor businesses to communicate, the poll found, are: directcommunications from companies (76 percent), commercial wireservices (70 percent), and their own outreach to companies (52percent), also e-mail (80 percent), Web sites (66 percent), andnews releases sent over wire services, (59 percent).

The poll found private equity and venture capital firms were notseen as good communicators. No journalists rated these firms asexcellent, and only 30 percent said their communicationscapabilities are good, while 23 percent rated them poor and 48percent fair.

The online survey was sent to primarily North American financialservices journalists between February 3 and 24. Of the surveyrespondents, 94 were from the United States, 10 from Canada, 4 fromthe United Kingdom, and 1 from India.

For a complete copy of the study contact Bill Haynes at:[email protected],617-556-9982, x224.