Business Communication for Financial Services: Benefits & Considerations
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Have you ever felt like your communication skills in the business world needed to improve? Have you ever felt uncomfortable using a specific language or speaking a certain way in meetings or at events around the office? These are some of the key characteristics that make up what is known as business communication.
Understanding how they work and how other people will react to different types of language and behaviors is essential to optimize your performance. This article discusses many aspects of this field and even provides examples of effective business managers who use them effectively.
Suppose you work in financial services and must communicate with customers, prospects, suppliers, or partners – for marketing, sales, or technical product knowledge. It’s important to consider what is effective and what is not.
What Is Business Communication?
Business communication is arguably one of the most important aspects of any business. Especially financial services, since it’s an essential part of the sales process and everybody involved needs good communication skills to succeed.
It is similar to marketing, but with a little more depth, and requires a few unique skills. The main difference between marketing and business communication is that in marketing, you’re trying to promote your brand and values. In contrast, you’re trying to present facts and benefits for your product or service in business communication.
One essential thing is to be aware that there are two types of business communication – formal and informal.
- Formal communication: This type is generally demonstrated using written or spoken material, such as emails, letters, brochures, and other printed material. When this method is used, it should be used carefully. Not all communications are practical. Some can lead to poor customer service and damage your client relationship.
- Informal communication: This type is generally demonstrated through face-to-face interactions or telephone conversations. These types of communications can be effective if done correctly because some clients have certain expectations about how you communicate with them (e.g. a certain level of personalization).
Building rapport with clients and being Confident:
When you can speak with clients confidently, they’ll feel more comfortable discussing their finances with you.
Confident communication in the financial sector is vital, as it’ll help you work with employers and clients. Confidence can come from experience or practice. You might have helped to improve your communication skills through previous job roles that require you to handle more complex situations or products. Or you could have practiced at home by being confident when talking to customers over the phone or speaking in front of a large group. Whatever the case, it’s helpful to understand that confidence is probably one of the most essential skills required by professionals in this field.
Financial services professionals often deal with uncomfortable situations and difficult conversations, such as discussing personal finances and selling products that consumers don’t necessarily want. But confidently discussing these issues will show clients that you’re trustworthy and honest. Furthermore, demonstrating these qualities can show prospective employers that you possess vital skills for a successful financial industry career.
When you can speak clearly to your clients, they’ll be able to make informed decisions about their finances, and so you can help improve their financial well-being. Consider the negative consequences of poor business communication: Employees working in the financial sector must communicate effectively with consumers and employees alike. It can result in valuable experience communicating professionally in front of a large group, which will benefit any future career.
Delivering effective customer service helps you speak well and makes a good impression on prospective employers. Speaking confidently with clients can significantly improve your business’s success. Confident communication will build trust between you and your customers, translating into more business for the company. It can also improve the overall appearance of your business, helping to make it better perceived by employees and clients alike.
Benefits of business communication for financial services:
Strong and effective communication is critical in a financial services company. Communication helps to drive strategic decisions and grow the business.
Communication is vital in any profession, but it’s even more important to speak effectively with your clients when you work in the banking or finance field. Whilst communications skills are essential across professions, they’re especially crucial when dealing with clients and employers.
- Productivity: Businesses save money on training and recruitment costs and reduce absenteeism if employees are more productive.
- Improves customer service: Employees are happier, which will increase their job satisfaction (less turnover). It makes the customer feel valued and can lead to repeat business and word-of-mouth referrals
- Enhances the customer experience: Enhanced customer service improves a business’ reputation. More satisfied customers will likely recommend the service to their friends, family, and colleagues.
- Help with risk management: Management will be better able to monitor and control fraud and security risks if they have a phone number to contact employees on call 24 hours a day.
- Enhances employee engagement: Employees are happier at work if they can speak their first language or use an accent familiar to their family members (i.e., from home). People who feel comfortable at work are more likely to enjoy what they do, which can lead to better productivity and greater job satisfaction
- Increases customer retention: Businesses are more likely to retain customers if employees can speak their native language or use an accent familiar to their family or at home. It will also lead to less turnover and a better work-life balance for employees
- Improves product development: If products are developed by teams led by employees who have a common heritage, they are more likely to be innovative. More innovative teams will lead to better products with a broader appeal
- Increases motivation and loyalty: Employees who feel motivated will perform better. Motivation, in turn, can lead to higher customer satisfaction and satisfaction with the job itself.
The cost of business communication can often be prohibitive without proper guidelines and processes in place. These procedures should consider available resources, such as budget vs revenue growth targets, size of the business, etc.
If you decide that your finances could be better or the overhead costs are becoming too high for your business, you may consider outsourcing these activities.
- Encourage teamwork across different departments: Once employees become more familiar with each other and their colleagues, they can work together and share ideas across departments.
- Emphasis on training and coaching:
- Training will help employees develop skills in the use of the new language, including basic grammar and spelling
- Coaching will help reinforce the teaching from training, showing employees how these skills can be applicable at work
- Ensure sufficient time is allocated for training and development of new skills.
Financial services workers must communicate with clients daily, whether discussing insurance policies, giving financial advice, or administering personal loans. But those skills are only sometimes easy to find. That’s why it is so essential for financial services professionals to understand the communication styles and techniques that will be most effective in their job. But make sure your message gets appropriately delivers and impacts on both receivers and senders.
Published: May 31st, 2023