Financial Communication: Impacted, If Not Transformed, by Digitalization

The State of Financial Communication

Financial communication has become a critical issue. Companies no longer publish solely to meet legal obligations; instead, they are developing comprehensive strategies. Over the past decade, we have witnessed a major shift toward greater transparency-particularly regarding environmental commitments. Corporate Social Responsibility (CSR) concerns and the NRE law now require listed companies to disclose the social and environmental impacts of their activities.

Despite the wider deployment and easier access to various distribution channels, companies still rely on traditional digital tools for communication. What changes need to be made, and which tools should be adopted?

Five Key Trends in Financial Communication

In an environment rife with fake news, repeated hacks, and where a single tweet can swing a company’s share price, caution is the prevailing trend. Nevertheless, the use of social networks for financial communication has become widespread. Given the many regulations imposed by the SEC and AMF-regarding neutrality, accessibility, and timing-what is the appropriate approach to financial communication on social media?

1. Financial Communication Must Be Multichannel

Most listed companies are investing in social networks to communicate their results: according to FTI Consulting, 80% of CAC 40 companies use at least one social network for financial communication, and 70% use Twitter. Proper use of social media and well-crafted communication not only help “guard against crises” but also “strengthen the community and, consequently, the company’s reputation”.

2. Highlighting Key Events

Social media enables companies to amplify their most significant operations and showcase their strategies. General meetings are webcast, live-tweeted, and executive responses are shared in real time, with key figures presented through infographics. These new practices encourage investors to monitor the social media activity of companies and their executives

3. Executives Must Be Present on Social Networks

Personal accounts of executives foster greater proximity, transparency, and credibility for both the company and the corporate content they share. As the Kairos Consulting report notes, “The words of a company figure have more impact than a simple image.”

4. Tailoring Messaging to Each Social Network

Different channels mean different audiences-and therefore, different messages. The main challenge is understanding the codes of each social network and using them wisely. The goal is to deliver a message that is clear, impactful, and easily understood at a glance.

5. Creating Engagement

The instant nature of social networks-especially Twitter-can be challenging for companies. It is crucial to remain responsive when sharing messages: knowing how to react quickly, but above all, effectively. The information shared can directly affect a company’s share price.

New Tools for Investor Relations

Anne-Sophie Gentil recommends using social networks, “especially Twitter,” as a complement to traditional financial communication tools. “Twitter seems to me the most direct and user-friendly tool.” She also notes that “sharing information on LinkedIn is worthwhile.”

Wiztrust: Corporate and Financial Content Management Platform

Wiztrust helps you maximize the value of your financial data, putting it at the service of more effective digital communication. This SaaS platform enables your financial communication team to publish information online, which is then distributed simultaneously through the appropriate channels.

A Mobile App for Corporate Financial Communication
Mobile applications provide “real-time access to results presentations, stock prices and their evolution, financial documents, etc.” Compared to corporate websites, mobile apps offer a seamless experience for investors and achieve higher engagement rates. They also allow for personalized content management via a platform.

Virtual Assistants and Avatars
Thanks to artificial intelligence, some bots can handle repetitive tasks, such as drafting materials for earnings calls. This frees up teams to focus on higher-value activities.

Blockchain
As a true “trust engine” through decentralization, blockchain can make shareholding accessible to all, while providing transparency and security. The possibilities for reinventing investor relations are endless, ushering in a new era of financial communication.

This is precisely why Wiztrust was created: a solution that enables corporate and financial communication teams to certify their information on the blockchain. Journalists, investors, and financial analysts can then verify the authenticity of this information