News Article Published:
Wednesday, 29 August 2007
Category:
Insurance
Financial services providers would be advised to steer clear of using jargon in their advertising, as research has shown that the average consumer neither likes nor understands industry terms.
In a poll by TNS Finance, 80 per cent of people said that financial services providers should avoid investment product jargon, instead explaining financial terms more clearly.
Firms would be wise to ensure that when marketing financial services, they advertise themselves as providing simple and easy-to-understand advice, as this appears to be what the customer wants.
Some 73 per cent of consumers said they wanted financial firms to provide more personal advice based on individual needs. And a further 60 per cent said it was important to them to have real case studies of progress other customers have made after investing in a product they were advised to by the firm.
Sharon Rees, UK head of TNS Finance, said: "A more fluid investment climate creates uncertainty and arguably this impact can be seen most among the occasional investor.
"In this climate, they need clarity and reassurance that they are making the right investment decisions. More personal, one-to-one advice will clearly play a significant role here.
"A clear message has emerged from our findings - that by altering its approach to customer interaction, the financial services sector is likely to be better used by those wanting to invest."
This advice is backed up by research by Abbey Current Accounts, which showed that one in ten adults would not pass a simple personal finance exam at GCSE grade C.
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