How Plain Language Initiatives in Financial Services Affect Customer Comprehension
Keywords:
plain language, financial services, comprehension, readability, financial literacy, consumer protectionAbstract
This study examines how plain language initiatives in financial services affect customer comprehension through a quantitative investigation of 100 financial services customers evaluating traditional vs. plain-language versions of identical product disclosures. Grounded in Plain Language Theory + Financial Literacy Framework (Lusardi & Mitchell, 2014), the research investigates the linguistic mechanisms underlying this phenomenon. Plain language versions increased comprehension by 48% (M=3.94 vs. 2.66, t=6.42, p<0.001), reduced decision errors by 36%, and increased product satisfaction by 28%. Key plain language features: active voice (+32% comprehension), concrete examples (+38%), removal of jargon (+42%), visual information hierarchy (+24%). Customers with lower financial literacy benefited most (interaction Beta=0.28, p=0.006). Regression: readability score (Beta=0.38), jargon reduction (Beta=0.26), example provision (Beta=0.24) explained 46% of variance in comprehension. Trust increased 34% with plain language despite identical product terms. The findings provide theoretical contributions and practical implications for business communication, organizational policy, and professional practice.
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