3 Strategies Crypto Firms Can Use to Find a New Banking Partner

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If your crypto business is looking for a new bank, you are not alone.

The recent collapse of three crypto-friendly banks has added a new hurdle for digital asset firms that are still grappling with the impact of the crypto winter and a regulatory crackdown.

But communications can play a key role in helping you define your public image and the potential risks associated with your business – factors that potential banking partners watch closely.

Brett Philbin is executive vice president, Rachel Millard is senior vice president and Rosie Gillam is senior vice president of Edelman Smithfield’s financial services practice.

Below are three strategies that can make the banking courtship process easier:

Clearly articulate your focus on risk and compliance

It is very important to ensure that the controlled elements of your business are at the forefront. Crypto Is the Least Trusted Financial Services Subsector, According to the Edelman Trust Barometer 2023, which polled more than 32,000 respondents in 28 countries in November.

This is one of the main reasons why it is essential to have licensing, registrations and compliance standards in a prominent place on your website. Consider placing them at the heart of your “about the company” message. Highlight any compliance or financial health actions taken by your company. Make sure your CRO or CFO is listed on the website with their bio.

See also: When Will Crypto Learn From Bank Mistakes? | Notice

This step sends the message to potential banking partners that you have someone in-house who can interact with them the way they are used to working. These seemingly minor changes are valuable: they highlight the steps you’ve taken to reduce risk within the business.

Revisit messaging on your corporate website and social media

Suppose potential banking partners will do their homework by visiting your corporate website and corporate social networks to deepen their understanding of your business, your management team, and recent developments that might affect their choice or not to associate with you.

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Make sure critical information is accessible and understandable (spend time carefully crafting your “about” page). This is especially important if you operate in a niche category within the larger crypto ecosystem.

A decentralized exchange, for example, should be explicit in explaining how it differs from a centralized exchange, to help less expert audiences understand the nuanced differences between the two.

Beyond the website, be sure to do a quick refresh of your social channels. Your online presence and behavior can play a role in the assessment process. Use these channels to communicate updates on the business, including any recent developments that demonstrate long-term viability such as customer wins, partnerships, and product launches.

On the other hand, as Crypto Twitter is inundated with hot politics, ask yourself if your company is in the best position to contribute to this conversation. Banks evaluating potential partners can weigh the liability associated with incendiary corporate management willing to tweet at any regulator without considering the impact it could have on their image.

Engage professional associations to lead certain battles

For many organizations, it’s best to ignore the hot political tweet and instead consider engaging with industry trade associations to advance these concerns and goals.

See also: How Politics Shaped Crypto Banking Outlook | Notice

Trade associations carry weight in Washington, DC They are able to take strong political positions publicly and generate media interest in them in ways that individual companies cannot.

These organizations can also help broker productive and impactful behind-the-scenes conversations with decision-makers and facilitate introductions to potential partners and allies that can be helpful in driving longer-term growth strategies for your business.

Now more than ever, it’s clear that the first step on the road to mass crypto adoption is for businesses to find a bank they can trust. The right communication strategy can help you avoid having to settle for a Tier 2 or Tier 3 banking option. Use these tactics to accelerate your transition to a new banking partner today.