Financial products can feel complicated.  

The language can feel impenetrable.  

There are so many providers, so many choices. 

If this is the landscape, we need to start focusing on how consumers really make decisions and how financial services brands can engage with people. We need to look beyond rates and charges. 

When things are complicated, we often ignore them, it can be difficult to know where to start or to take the first step. Things get put off and left for another time, whether it’s pensions, life insurance or debt. 

A staggering three quarters of people in the UK don't understand basic financial terms. Put simply it means that most letters and comms that banks, insurers, credit card companies, and investment companies send out are not understood by their customers! What impact does this have on the relationship between brand and customer? How does it make customers feel? 

And when there are too many choices, we use shortcuts to help us decide. We follow what others are doing. We go with what is familiar to us. Or we walk away because the choice is overwhelming – the choice paradox.  

There are so many emotions and feelings wrapped up in finances –anxiety, stress, embarrassment, denial, guilt, insecurity, fear, panic... 

People are often unwilling to admit they don’t understand.  

People do not want to look stupid. 

They want to feel understood, to be treated fairly, as an equal. 

Understanding and responding to people’s financial behaviour is complex - it’s not a single, quick fix or adjustment. There are multiple hurdles. 

We can learn some important lessons from behavioural science. 

To start with look at how you can create and sustain emotional connections – this is what builds trust. Brands such as Starling and first direct do this well. They use simple consumer language, a helpful, confident and friendly tone of voice. They speak to customers as equals, not parent to child. The result is customers who are strong advocates of the brand. And they do this without any face-to-face contact! 

Then, think about the language you use and how you refer to both customer groups and products or services. Do customers identify themselves as ‘vulnerable’ or ‘risk takers? If they don’t they won’t consider the advice, products or services within it – it’s not for them.  

And consider and respond to the range of emotions that may be felt in each moment – their emotional state is not static. If a customer is feeling anxious, they’re more likely to choose a familiar, safe option – this is not the time to introduce them to something new. If they’re angry, they will not be patient with you. Now is the time for a few key questions, not reams of questions.   

By recognising and responding to customers’ context and emotions we can create better connections and build stronger relationships.

Better for customers. Better for your brand.