Why your 2025 crisis communications plan must be ready before you need it
By Marielle Solano, Account Manager
Crisis hits fast. Your comms should hit faster.
Doing good business is an incredibly precise undertaking demanding the right ingredients in exact measures. The strongest recipes start with bold ideas, steady capital, and risk willingness. Then into the mix, add a keen eye for understanding market appetite and in the oven is a business pie full of potential.
Take cash management platform, Chocolate Finance for example: it differentiated its services through a bold ‘we don’t earn until you do’ model and a promise of instant withdrawals. As far as SaaS marketing goes, by tying its revenue directly to customer gains, it was betting big on transparency. But then when demand rose beyond expectations, it froze client withdrawals – and that same boldness became a liability overnight.
Risk-taking is an essential tenet of entrepreneurship, but risk willingness is decidedly different from risk readiness. As we’ve recently seen, the most promising ventures can unravel if they’re not ready with a plan when exposed to the many ways a risk can escalate. The Singapore-born startup’s recent crisis offers a brutal reminder: in fintech, your product might be digital, but trust is built – and burned – in human terms.
The unfolding of a modern crisis
On 10 March 2025, Chocolate Finance customers were suddenly forced into a 3-10 day wait with no reversals. What began as an operational tweak quickly spiraled into a full-blown reputational crisis, proving just how quickly trust can unravel in the digital age.
Trouble had been brewing days earlier when the company quietly axed AXS payments – a popular platform for bills and fines – from its rewards program. The change itself might have been manageable, but the lack of clear communication left customers guessing. Early statements blaming AXS only deepened frustration.
Left unattended, that small spark caught flame, fanned by speculation until it became a full-blown social media wildfire. Finance forums erupted, influencers pulled funds, and withdrawal screenshots went viral. By the time Chocolate Finance responded, the damage was done – mass panic withdrawals had already triggered the liquidity crunch it feared.
The startup’s CEO said it best: “We communicated the change poorly.” In a candid LinkedIn post, he admitted that the rewards program had been ”unsustainable” from the outset; a well-intentioned but poorly calibrated incentive. In an era where information travels at the speed of social, crisis communications isn’t just damage control – it’s about staying ahead of the story before the story defines you.
Where crisis communications failed – and how to rebuild trust
Chocolate Finance’s stumble wasn’t just operational. It was a lesson in how poor communication and lack of a SaaS marketing crisis plan can turn challenges into crises.
First, silence fueled panic. By not proactively explaining the AXS payment removal, it let speculation run wild. In finance, ambiguity breeds fear – and fear triggers withdrawals.
By the time Chocolate Finance responded, narratives had hardened online. Yet a hasty effort to catch up with the rumor mill risked credibility – framing withdrawal delays as a mere “transaction volume issue” was technically true but emotionally tone-deaf. In fragile markets, perception is reality.
Perhaps most damaging was when regulators found themselves compelled to step in. The Monetary Authority of Singapore’s involvement signaled more than operational oversight – it marked a breakdown in stakeholder confidence.
Financial institutions must remember they operate in an ecosystem of watchful eyes: customers yes, but also regulators, journalists, and influential voices who shape public perception. This is why planning is so critical – it prepares businesses to act swiftly and with clarity, delivering thoughtful, coordinated messages that are tailored yet consistent across all fronts.
Chocolate Finance’s crisis was preventable. The same principles that could have helped mitigate the damage now anchor its journey in rebuilding trust:
- Transparency isn’t optional; it’s the first line of defense.
- Precision matters, but so does reassurance. Choose language that stabilizes, not startles.
- Prep crisis frameworks now – so when pressure hits, you deploy clarity at pace.
- Real crisis management speaks to all stakeholders (employees, customers, influencers, and watchdogs) with one cohesive message.
Crisis communications: why planning is king
Crises have a way of revealing the gaps between what we assume will work and what actually does. Too often, organizations rely on goodwill or ad-hoc reactions when the pressure mounts. But goodwill is fragile, and improvisation under stress rarely lands as intended. The difference between containment and contagion lies in the work done long before the first warning signs appear.
Effective crisis response means establishing clear protocols for escalation, so teams know when a hiccup poses a reputational threat. It means drafting message architectures that are consistent in principle but flexible enough to address evolving contexts. And critically, it means mapping stakeholders not just by priority, but by their unique concerns – because regulators, customers, and the media each need to hear the same truth framed in ways that resonate with their expectations.
When done right, this preparation doesn’t just mitigate damage; it creates space to navigate the crisis with intentionality. Speed still matters, but it’s the difference between reacting and responding. The goal isn’t to eliminate surprises – it’s to ensure that when they happen, they don’t define you.
Building trust across APAC markets requires localized crisis strategies. Start the conversation with our Singapore team today.
Key Takeaways
Q: What caused the crisis at Chocolate Finance?
A: A poorly communicated platform change triggered panic, leading to mass withdrawals and regulatory involvement.
Q: How did communication failures escalate the situation?
A: Silence, vague statements, and lack of proactive messaging fueled speculation and loss of trust.
Q: What can other startups learn from this?
A: Build and test a crisis communications plan early. Prioritize speed, clarity, and consistent messaging across all stakeholder groups.
