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How Banks and Lenders Can Serve Customers with Language Barriers

- November 11, 2024
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Throughout the United States, language barriers often hinder non-native English speakers from accessing banking services, complicating tasks like bill payments and saving money. One in 12 Americans has limited English proficiency and is underserved by the banking sector.

Lacking a bank account can result in significant challenges. Without banking services, managing bills and savings becomes more difficult. However, banks also incur costs. According to the 2021 U.S. Census Bureau, 67.2 million Americans (21.7%) speak a language other than English at home. Providing financial services to these groups is ethical and can also financially benefit banks. This post explores the steps banks take to overcome language barriers and how these efforts can benefit both banks and their customers.

Offering Centralized Tech Support to Customers with Language Barriers

Several large institutions offering language services reported having a central contact point that provides technical support to employees on language-related initiatives. Depending on the institution, the central contact’s functions may include:

  • Annually reviewing non-English language processes and procedures
  • Setting translation and interpretation policies
  • Creating quality control mechanisms
  • Assessing which business areas would benefit most from LEP services

Evaluate the Linguistic Requirements of Customers with Language Barriers

Numerous institutions, like the U.S. Census Bureau, review demographic information from different sources to assess their customers’ probable language preferences. Institutions with a national presence often focus on developing resources to cater to Spanish-speaking consumers, whereas regional institutions align their language resources with local demographics. This might be a challenge, especially when getting loans. Companies like My Canada Payday have great loan options for those needing a quick cash injection, regardless of language barriers.

Creating Systems for Translation and Interpretation

Many larger institutions offering language services reported having systems for written translation and verbal interpretation to ensure consistency and accuracy. They often focus on translating meanings rather than word-for-word and employ back-translation, where a translated document is translated back to English by another party, to validate third-party translations.

Financial institutions rely on internal or external bilingual glossaries to maintain consistency in terms throughout translations. Additionally, some institutions utilize various technological solutions and occasionally third-party vendors for financial translations.

Educating Employees and Contractors in Linguistic and Cultural Skills

Organizations offering language services indicated they employ diverse strategies to ensure their staff and contractors possess the required linguistic and cultural proficiency to assist LEP clients.

Some of these organizations hire individuals fluent in foreign languages, culturally adept, and knowledgeable in finance. They frequently mandate internal or external certification for both written and verbal skills. Those primarily relying on third-party translators or interpreters usually keep some language experts on staff to maintain quality control.

Providing Platforms for Engaging with LEP Customers

Organizations offering language services described various methods for engaging with LEP consumers in their preferred language across different contexts. Many offer phone-based verbal interpretation and have multilingual options on their digital platforms and access points. However, most reported that their written contracts or agreements were available solely in English.

Spread the Word About Language Services

Regional banks promote their language services where their audience engages, whether through WhatsApp or community church bulletin boards. They also ensure that all employees understand the available language services, how to access them, and when to utilize them.

For instance, Certified Languages International collaborated with a regional bank to develop branded signage for branch entrances, provided comprehensive training for staff on connecting customers with interpreters, and supplied language ID brochures to help customers identify their language by pointing.

Inquire About People’s Needs

You’d be surprised by how many companies don’t seek client feedback. LEP customers are even more inclined to provide feedback when asked in their preferred language. How can you begin?

  • Start by translating your feedback forms.
  • Then, advance to conducting “voice of the client” interviews.

It doesn’t require much interaction to start identifying trends. You just need to ask. Ultimately, reducing language barriers in financial services is about simplicity. Concentrate first on everyday interactions (both in person and online), such as opening an account or cashing a check. Review the process and consider all the friction points an LEP consumer might face from the moment they enter.

Engage with trusted organizations and start building relationships. Soon enough, you’ll be making substantial progress in meeting the financial needs of your LEP community.

Develop Multilingual Content to Break Language Barriers

While English is used for lending in the US, in-language support builds trust and ensures customer success, particularly for LEP speakers. Multilingual marketing materials, applications, financial documents, and help centers demonstrate a commitment to serving LEP and non-English speaking customers.

Approximately 75% of consumers are more inclined to purchase if information is presented in their native language. The digital age has broadened communication channels into diverse engagement and service opportunities.

For instance, customer service now includes both human and automated interactions through online chat and phone calls. Lenders can utilize on-demand interpretation, which involves spoken translation.

Endnote

Language barriers can hinder access to necessary banking services or products, but efforts are underway in the U.S. to solve this issue. As the banking sector becomes more inclusive, individuals with limited English skills may find it easier to open accounts, apply for loans, and manage their finances without incurring high fees.