Financial jargon 'drives customers away' from banks

Customers are being driven away from banks and building societies who bombard them with financial jargon, new research backed by the treasury has found.

Three-fifths (60%) said they were likely to stop saving with a particular bank or building society is they could not understand the terms and conditions, while more than half said confusing language could prompt them to switch banks, the study by National Savings and Investments (NS&I) found.

Julian Hynd, director of retail at NS&I said it was clear that customers are being bombarded with financial jargon but it was essential information that is relevant too them.

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Financial jargon 'drives banking customers away'

Financial jargon is driving customers away from banks and building societies, new treasury backed research has found.

Financial jargon drives customers away from banks, new research has found. Credit: PA

Three-fifths (60%) of consumers said they are likely to stop saving with a particular bank or building society if they cannot understand the way they explain their terms and conditions, according to the study by National Savings and Investments (NS&I).

More than half (54%) said confusing language would make them consider switching their custom to another firm.

Call centre staff were responsible for 41% of consumer confusion, while almost half (49%) said terminology in application forms had left them baffled.

Jargon used on company websites had also confused 50% of those polled. One quarter (25%) said they had stopped saving with a particular bank or building society as a result of website jargon.

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