Financial transactions can be daunting — and even more so for the 1 in 5 U.S. residents who speak a language other than English at home. Language barriers make it difficult for people with limited English proficiency (LEP) to gain access to banking services and information about everything from business hours to loan terms, checking account options, and more.
In an uncertain economy, banks — and regional and community banks in particular — increasingly recognize the value of language services as a customer experience (CX) differentiator and a powerful way to reach a huge market of unserved or underserved customers. Making financial services available to these communities can be highly profitable for banks, as the number of people who are unbanked in the U.S. is higher in communities where English is not the first language (8.4 percent for Hispanic households, compared to just 2 percent of white ones, according to the most recent survey by the FDIC). This represents a significant opportunity for banks that provide products and services to these potential customers.
And regional banks are setting a new standard by reducing barriers to attract, serve, and build trust with the LEP community. While nationwide institutions largely focus on serving Spanish-speaking consumers, according to the Consumer Financial Protection Bureau, regional institutions typically align language services with local demographics.
Here’s what you can learn from the regional banks leading the way in speaking their customers’ language:
Provide a great customer experience
Regional banks work hard to ensure that their agents are able to help anyone who walks through their doors or calls their contact center. In many cases, that takes the form of bilingual agents or a language services partner who can help ensure that their customers have access to trained, experienced interpreters. This can have a spillover effect on the employee experience by removing a key source of frustration — not being able to communicate with customers.
Make banking more accessible
Regional banks are meeting customers where they are with tactics that include buses that travel to the communities they serve, offering mobile services. They’re also removing barriers to banking; for example, by reducing fees or lowering the minimum deposit required to open an account.
Use culturally appropriate communications
In banking, as in everything else, there are terms that don’t translate directly from one language to another. When this happens, the interpreter needs to be able to explain a complicated concept — interest rates or an escrow account, for example — to someone who speaks a language other than English and who may come from a country where banking operates much differently. That makes it important for banks to have interpreters who not only know the language but also the assumptions customers are bringing to the table based on their home country.
Ensure that your employee base reflects the languages spoken in the community
For many regional banking leaders, the goal is to have language concordance, so staff can speak directly to customers. Ensuring that the makeup of the staff, from basic positions all the up through upper management, reflects the community — both in language spoken as well as country of origin—reduces communication and cultural barriers while sending a powerful message to customers that they are valued.
Ask customers what they need
LEP customers are more likely to supply feedback when asked in their preferred language. Regional banks are enabling this by translating comment cards and conducting “voice of the client” interviews in customers’ language of choice. This helps uncover friction points for LEP consumers and delivers insights specific to the bank’s customer base; for example, if a lack of access to technology makes online banking infeasible for certain customer segments.
Start small, looking closely at day-to-day interactions with customers
The Dodd-Frank Act focuses on “fair, equitable, and nondiscriminatory access to credit.” One helpful way to look at the bank’s role is this: If you were an LEP consumer, what information would you need to understand your banking options and services? Once that has been decided, translate those documents.
The Federal Housing Finance Agency has already done the legwork by translating some mortgage-related documents into Spanish, traditional Chinese, Vietnamese, Korean, and Tagalog. The CFPB also offers financial education materials translated into eight languages and released a language access plan for LEP consumers.
Get the word out about language services
Regional banks are advertising their language services where their target audience listens or interacts, whether that be via WhatsApp or via a notice tacked to a community church bulletin board. They also ensure that everyone inside the organization understands the language services offered, how to access them, and when to use them.
For example, Certified Languages International partnered with one regional bank to create special branded signage to hang in the front entrances of all their branches, offered extensive training for bank staff on how to connect customers with interpreters, and provided language ID brochures that enabled the bank’s customers to easily self-identify their language simply by pointing.
Pulling it all together: Better service for all customers
Everyone deserves to be able to communicate with the banks they do business with in their preferred language, and regional banks are leading the industry in ensuring that nothing gets lost in translation. By taking steps to support customers in their preferred language, they’re increasing customer satisfaction and bolstering their brand with the LEP communities they serve.
They’re also tapping into a broader base of customers who might otherwise be hesitant to engage with a bank that doesn’t accommodate their language preferences. By reducing friction and miscommunication with all their customers — not just those who speak English as their first language — they’re not only setting themselves apart in their own region, but also raising the bar for banks of all shapes and sizes across the country.
Kristin Quinlan serves as CEO of Certified Languages International (CLI), a U.S.-based, on-demand interpreting company founded in 1996.