The benefits of digital communication are undeniable, yet truly effective financial communication that results in reliable investor relationships takes time, trust, and resources. Leaders across industries have found that the financial rewards of personal relationships make the time worth the investment. In this Think Act report, we present the results of our survey of leading CFOs. We asked them to review their strategies for direct, effective communication, as well as the scenarios that offer the greatest financial advantages, and we found that there’s a clear correlation between credible communication and follow-up financing – and at the heart of these exchanges are one-on-one meetings.

While written or standardized forms of correspondence, including annual reports or online documents, are great for reaching large numbers, they have been shown to be much less effective in consequent financing. A significant majority of the CFO respondents reported that they invest more than 10 percent of their time in direct exchanges with their investors.

The advantages of face-to-face communication have been proven to have greater results in terms of follow-up financing, lowered financing cost, and the attainment of strategic insights from investors – a so-called informational two-way street, with direct insight into the investors fields of interest and concern. We discovered that CFOs should be especially cautious during one-on-ones to avoid the disclosure of insider information with potential investors.

Communication strategies

Likewise, we’ve found that stricter capital market regulations combined with the investor’s greater demand for information has resulted in an increasingly complex situation for CFOs. By examining existing communication strategies as well as future-oriented reporting tactics in bank financing, industry leaders will find solutions to optimizing interchanges directly related to specific areas of investor interest.

Strategic proactive communication tools are essential to build reliable partnerships while raising capital – and this report offers stakeholders insights into how they can best bring their communications and priorities into alignment.

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