Marketing tools for minimizing reputation risk of non-banking financial institutions under tightening regulatory supervision

Abstract

The research article addresses the comprehensive theoretical and methodological foundations of integrating modern marketing tools into the overall strategic system of financial risk management. The relevance of the study is heavily driven by the strict and ongoing transformations of the prudential supervision introduced by the National Bank of Ukraine, along with the critical macroeconomic challenges of martial law. Special attention is paid to identifying and conceptualizing reputation risk as an independent, endogenous financial category that directly absorbs institutional liquidity and financial stability. The paper deeply substantiates the destructive impact of non-compliant, misleading, and aggressive advertising practices on the total capitalization and general solvency of non-banking financial intermediaries. The primary result of this extensive scientific search is the systematic classification and grouping of applied marketing tools based on the strict criterion of their regulatory and reputational safety. The author successfully proposes a novel conceptual logical-structural model that explicitly links the compliance-oriented parameters of the modified marketing mix (the expanded 7P model) with specific financial performance indicators. These critical indicators include the minimization and optimization of the cost-to-income ratio, a significant reduction in the volume of non-performing loans within the retail credit portfolio, and the sustainable long-term growth of institutional goodwill value. The study fully proves that restructuring promotional activities and pricing strategies acts as a preventive financial leverage, effectively shifting marketing from a purely commercial tool into a highly reliable internal financial stabilizer. The practical significance of the obtained results lies in providing actionable and realistic managerial recommendations for executives of insurance companies, credit unions, and financial firms to systematically protect their capital from heavy regulatory sanctions and ensure long-term solvency on the domestic market.