SURVEY FINDS FINANCIAL PROVIDERS FACE ‘HUGE TASK’ IN IMPROVING CLIENT COMMUNICATIONS WITH CONSUMER DUTY LOOMING
Consumers rarely read the essential communications sent to them by financial companies – such as pension companies, mortgage lenders and ISA providers – because those communications are too long and too full of jargon. Consumers simply don’t have the time.
These are the findings of a new survey from asset and wealth management consultancy firm, Simplify Consulting.
The survey comes as financial providers face tough new regulations around financial communications under the FCA’s Consumer Duty consultation.
The survey found that the top reasons as to why consumers are discouraged from reading financial communications are:
* Communications are too long (64.4%)
* Don’t always have the time (50.5%)
* Too much jargon (45.5%)
* There’s no immediately clear action in the communication (45.5%)
* Lack of volition: “I don’t want to read it or feel I need to” (30.7%)
* Not written in plain English (27.7%)
The survey of just over 100 investors, comprised of 58% female and 42% male from under 18s to 65 years plus, found that just 14% of customers read all of the communications sent to them, compared to 16% that are never read.
Most respondents were in the 35-44 age group, with 45-54 year olds and 25-34 year olds making up the second and third highest number of respondents respectively.
The survey also found that 70% of respondents receive no communication at