Is jargon holding back manufacturing growth?

30 September 2019

Research from Wyelands Bank has shown that over two-thirds of mid-sized manufacturers say there is much jargon in the finance industry and this has resulted in missed business opportunities. 51% of survey respondents said that jargon has stopped them from getting the financial services they need and more than half said that confusing financial terminology has probably led to missed opportunities.

The research, of mid-sized manufacturers turning over £10m-£300m, showed that an inconsistent use of terminology causes real confusion.  What’s more, this confusion has stopped businesses from accessing the finance they need to unlock growth. 

Nearly three-quarters feel that different banks use the same terminology for different products and services.  Conversely, a similar proportion (71%) feel that identical products are called different things by different banks. 

Commenting on the research findings, Iain Hunter, CEO of Wyelands Bank, said: “Business finance does not need so much jargon.  It is confusing and makes it harder for customers to understand what they are looking for or to make the right decisions about what finance they need. 

“Making it easy for firms to raise funds to unlock growth goes to the heart of the productivity debate in the UK.  Anything that gets in the way can be detrimental to those firms and to the UK economy.”

The Wyelands research also shows that more than two-thirds of mid-sized manufacturers think that there is more jargon in the financial industry that other business areas.  A similar number believe that banks hide behind financial jargon and, as a result, some 60% would rather speak to someone outside of their bank about financing options.  The difficulties raising finance meant that these companies have missed out on an average of £20 million in revenues and an average of 11 new contracts which would have enabled each firm to create an average of ten new jobs.

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