Panama Banks: Weak Reputation, Strong Social Role

Panamanian Banking Sector Faces Reputation Deficit

Panama City – The Panamanian banking sector faces a reputation deficit despite its vital role in the nation’s economy, according to the RepCore® Banca 2025 study. Presented at an event hosted by the Cámara de Comercio, Industrias y Agricultura de Panamá, the study reveals that the average reputation score for the country’s banks is 44.3 out of 100, trailing the Iberoamerican average.

Reputation Score and Regional Context

The RepCore® Banca 2025 study, conducted by Reputation Lab, analyzed 121 financial entities across 18 countries, including 10 banks in Panama. The study found that Panama’s banking sector scored 0.5 points below the Iberoamerican average, with a slight decrease of 0.9 points compared to 2024. This places Panama eighth among the 18 countries evaluated, signaling a need for improvement.

The Social Expectations of Banks

Panamanians hold strong beliefs about the social responsibility of banks. Beyond merely providing financial services, they expect these institutions to actively contribute to social investment, particularly in education and environmental sustainability. Support for disadvantaged communities and the promotion of entrepreneurship are also high on the list of priorities.

The Consumer Perspective: Ethics and Accessibility

When evaluating a bank’s reputation, Panamanian consumers prioritize ethical behavior, access to credit, inclusivity, international presence, and technological adoption. These factors weigh heavily on public perception, especially given the country’s ongoing challenges with unemployment, rising prices, and corruption.

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Fernando Prado, a partner at Reputation Lab, noted: “While the reputation of banks is weak overall, in the case of Panama, we see significant differences among the entities analyzed. Some of them show important strengths when compared to the regional environment, with their greatest weakness being the perception of consumers of not facilitating access to credit.”

The Reputation-Recommendation Link

The study highlights a direct correlation between a bank’s reputation and consumer willingness to recommend it. A 5-point increase in a bank’s RepScore in Panama leads to a 4.2-point increase in the intention to recommend the bank. This underscores the importance of reputation management in driving consumer loyalty and advocacy.

Call for Greater Regulation

Reflecting concerns about vulnerability, a majority of Panamanians support increased government regulation of banking activity to protect consumers. This sentiment underscores the need for banks to operate transparently and ethically to maintain public trust.

Addressing Key Weaknesses

Despite recognizing certain strengths like equality, experience, and financial stability, Panamanians view access to credit as a significant weakness in the banking sector. Overcoming this perception is crucial for banks to strengthen their relationships with consumers and contribute to the country’s economic development.

Methodology

The RepCore® Banca model assesses the level of admiration, respect, and trust each entity earns through 25 rational attributes grouped into four dimensions. It also considers the supportive attitudes of stakeholders who link reputation with value creation. The RepCore® Banca 2025 analysis involved 25,307 valuations, with 2,482 specifically in Panama. The reputation of 121 financial entities (10 in Panama) was analyzed during February and March 2025.

The findings of the RepCore® Banca 2025 study serve as a call to action for Panamanian banks. By prioritizing ethical conduct, expanding access to credit, and actively engaging in social responsibility initiatives, these institutions can enhance their reputation and strengthen their role as drivers of economic and social progress.

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