Clear Communication Practices

by: Financial Consumer Agency of Canada
www.fcac-acfc.gc.ca

One of the most frequent criticisms of financial contracts, and terms and conditions is that they are full of confusing legalese. “Using clear communication allows consumers to better understand their finances and gain the confidence they need to make financial decisions that are right for them,” said Jane Rooney, Canada’s Financial Literacy Leader.

A few years ago, the Financial Consumer Agency of Canada (FCAC) conducted research into models of clear communication, both in Canada and internationally. As a result, FCAC established the following five principles to provide guidance when communicating with consumers:

1. Know your audience.
The writer needs to ask questions such as: who is the audience? What is their literacy level? What are their needs for information? The answers to these questions will influence the layout and content of the document.

2. Plan your text.
Pay attention to the structure, order, consistency and presentation of ideas and tailor the information to the literacy level of the reader.

3. Write clearly.
Use simple, familiar words, concrete terminology, active verbs, and lots of headings and sub-headings.

4. Pay attention to the visual presentation or appearance of documents.
A document's design should include lots of white space, boxes, bullets and other aids to help readers find and digest information. Charts and graphs should be simple as well, including only the data and design elements that are necessary for understanding.

5. Test your material.
Ensure documents are clear and effective in conveying the desired message. Both the needs of consumers and best practices change over time, so testing should be an ongoing activity.

Clear communication is a win-win proposition. It has obvious benefits for consumers, but the organizations that practice clear communication also benefit. When both parties are clear on the details, there are fewer misunderstandings, complaints and failed transactions. That’s the best outcome for everyone.