I got excited this morning when I read a CUNA News Now article about consumers and complexity. The article, “AARP study gives poor grades to FIs’ communication.”
Finally, someone is talking about a root issue in the business of finance and people. The complexity of our world today is off the charts. And finance is one facet of our society that is near or at the top in terms of complexity. Finance is woven into the very fabric of our lives. It touches just about everything we do.
Here are some of the responses from the survey:
- 54% believe jargon is used to distract people from focusing on the fees they will pay;
- 78% said they believe materials from financial companies are more about selling than educating;
- 63% said jargon is used to make a product seem more impressive; and
- 49% believe jargon is used to make consumers feel less confident that they can handle their own finances.
One statement said it all - “We talk a lot about transparency in this industry, but not enough about simplification and understanding.”
Want to really help your members out? Make their lives a little easier. Keep it simple. They’ll love you and quite likely will come back for more - of the straight talk, that they can understand.
This is a big deal and credit unions have a great opportunity to really make a difference. What do you think?
2 comments so far
1 Morriss Partee // Jun 23, 2008 at 12:46 pm
Indeed, making things easier and simpler for your members always pays dividends. Credit union executives should always monitor their member-facing communication to make sure they aren’t using jargon.
2 Denny DeGroote // Jun 23, 2008 at 1:55 pm
Morris,
Thanks for the comments. Conversations about this will only help others realize that this is not idle lip service given to a couple of issues very near and dear to consumers lives - time and complexity!
Denny
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