Society Magazine

Eight in Ten Brits Are Baffled by Banker Jargon

Posted on the 10 May 2016 by 72point @72hub
Eight in Ten Brits are Baffled by Banker Jargon


Millions of people don't understand financial terminology - and have signed financial contracts without knowing what they are agreeing to, according to new research.

One in six UK adults said they do not understand monetary terms such as ISA and AER - while a third have signed a financial contract without understanding the financial terms used.

Indeed eight in 10 respondents believe banks use too much jargon and think the government should take action against the financial institutions for using too much complicated jargon.

Commissioned by loan provider Norton Finance, 1000 adults were surveyed for their knowledge of finance-related terms commonly used by banks.

Keith Stringer, founder of Norton Finance, said: "It's easy to sympathise with people who can't get past the often impenetrable language that banks use.

"It's clear that people want more to be done about how much jargon is used by banks - we're seeing a huge majority wanting more action from public authorities to stem the issue.

"There's a tie to the kind of language a financial establishment uses and trust, with more obtuse language leading to less trust in what they are providing."

Two in five people admitted to having a sub-par understanding of financial jargon and four in 10 don't trust banks that use the complicated terminology.

As part of the survey, participants were given a list of real and imaginary financial terms and asked to say whether they were real or not.

Around half of those polled thought the term 'IVA' was made-up and one in 10 didn't believe 'credit rating' was a real term.

Of the imaginary jargon, nearly a quarter believed 'core gouging' was real and almost a third thought 'Annual Sorting Rate' was an actual financial term.

Keith Stringer, founder of Norton Finance, said: "It's important to ask about any jargon that you're not comfortable with - don't be afraid to get an explanation.

"Also ensure that you read all terms and conditions in any financial contracts you sign, otherwise you could get stung by hidden fees."

You can test your own understanding of financial terms by having a go at The Great Finance Jargon Quiz here:


Eight in Ten Brits are Baffled by Banker Jargon
Eight in Ten Brits are Baffled by Banker Jargon

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Kotte Kadubu: a Symbol of Tradition Wrapped in Moulds of Faith

    Kotte Kadubu: Symbol Tradition Wrapped Moulds Faith

    Having celebrated Ganesh Chathurthi last week with all the religious fervour, this post is a look at one of the traditions followed each year on the day of the... Read more

    The 19 September 2018 by   Rashmi Gopal Rao
  • Mintd Box + Oskia London

    Mintd Oskia London

    What happens when a luxury beauty box joins forces with a very famous skincare brand? This month's box is what! This September, Mintd Box have collaborated... Read more

    The 19 September 2018 by   Kellilash
  • North American T-6D Texan/Harvard

    North American T-6D Texan/Harvard

    @ Madras, OR August 2015 First flown in 1935, more than 15,000 of these iconic warbirds were produced and served in air forces around the world as late as 1995. Read more

    The 19 September 2018 by   Htam
  • The 2-week Keto Challenge: “I’m Amazed at How Satisfied I Feel”

    2-week Keto Challenge: “I’m Amazed Satisfied Feel”

    Over people have signed up for our free two-week keto low-carb challenge. You'll get free guidance, meal plans, recipes, shopping lists and troubleshooting... Read more

    The 19 September 2018 by   Dietdoctor
  • My Journey to Becoming a Special Education Teacher

    Journey Becoming Special Education Teacher

    Allyson Schwartzman at her graduation from Hofstra University School of Education.By Allyson SchwartzmanWhen I was graduating from elementary school, someone... Read more

    The 19 September 2018 by   Autismsciencefoundation
  • 7 Tips For Building The Right People Relationships

    Tips Building Right People Relationships

    In big business, as well as startups, I have found that your effectiveness can be highly correlated to your ability to build and maintain people relationships,... Read more

    The 19 September 2018 by   Martin Zwilling
  • Keto News Highlights: Teicholz, PURE and Kerrygold

    Keto News Highlights: Teicholz, PURE Kerrygold

    This week, we summarize the top five news articles and studies in the low-carb realm, plus some success stories. The Wall Street Journal runs an op-ed... Read more

    The 19 September 2018 by   Dietdoctor