Just 47% of adults are confident with their understanding of the terminology used to explain financial products, according to new research by home insurance provider Paymentshield.
As a result, when considering buying a financial product from a broker, 80% of people feel it’s important that the adviser is straightforward and clear in their communication, while the same proportion think an adviser should take time to listen to their needs.
59% also think it’s important that the adviser shows enthusiasm for the product, while 70% think advisers should be able to respectfully respond to and overcome any objections.
The findings suggest that in order to provide a better service to their clients and avoid putting people off, mortgage advisers should steer clear of overcomplicated or unfamiliar terminology and focus more on simply making sure clients understand.
The results also show a generational difference when it comes to understanding financial jargon. 55% of over-45s are confident with financial jargon, while this is true for only 38% of 25 to 34-year-olds – those most likely to be first-time buyers.
James Watson, sales director at Paymentshield, said: “When looking to arrange a mortgage or purchase a financial product like insurance, the type of language used can understandably be daunting and difficult for consumers to wrap their heads around, particularly if they’ve never done it before. This is why it’s so important for advisers to take the time to engage in conversation with their clients and resolve any of their issues by using clear and simple language.
“With a growing number of first-time buyers arranging their mortgage through an intermediary, this presents a ripe opportunity for advisers to allay any of their doubts, communicate the benefits of seeking professional advice and create a client for life.”
The results of the poll come in the wake of National Conversation Week, which took place from 19 to 25 March. The awareness week, which was spearheaded by Paymentshield, promoted traditional interaction and encouraged advisers to speak about general insurance with their clients every time they process a mortgage application.