As the back and forth associated our current financial crisis as a nation ensues, one of the many questions that comes to mind is “who is taking the pains to effectively communicate these evolving issues to the lay people; especially those at the intersection of financial and English illiteracy?” Is there an intentional plan to communicate the terms of the Domestic Debt Exchange Programme to the English illiterate market woman at Makola who has safely invested her millions of cedis in government securities upon advice from her bankers?” As we reflected on this, we realized that in the development of our financial architecture, we have not been sufficiently intentional about inclusive communication as a nation.
It will interest you to know that according to the most recent Ghana Living Standards Survey (GLSS), about 60 percent of the Ghanaian population is currently excluded from the financial market despite its significant role in our economic development. The greater Upper West, Northern, Volta, Upper East, and the Brong Ahafo regions are the least included regions in the country when it comes to financial markets and related services. While there are many others in other parts of the country not included in the financial markets, those regions are comparatively better. What do all these regions have in common? Low levels of educational attainment. It is interesting to note that there is usually a high correlation between low levels of educational attainment and levels of English literacy. In spite of this, financial services and products in Ghana are primarily provided in English.
Financial inclusion refers to a mechanism that ensures the ease of access, availability, and usage of the financial system. In simple terms, it is about how easy it is for people to access and use financial services such as savings, credit, money transfers, insurance, and investments.
Language, as an important element of culture, influences to a very large extent, the decision-making patterns of individuals as much as their beliefs, and habits do. Language, as a medium of communication, is at the core of all transactions, and financial services are not excluded. As a result, people’s ability to engage in any transactions, not only financial, is largely dependent on their ability to communicate clearly and to understand clearly what was communicated. Has our financial architecture as a nation, taken cognizance of this and made provisions to this effect? The easier it is for the financial institution or its agent to communicate with potential clients, the easier it is to build the trust much needed for financial transacting. Additionally, when deciding on the location to invest, investors tend to have a preference for markets that resonate with their culture. Language happens to be one pertinent element of culture.
Language, especially native languages, bears emotions and norms that tends to influence thoughts, judgment, and choices of people. Language undoubtedly could significantly influence financial inclusion as people’s financial decisions stem from their thoughts and judgments which are influenced by their language. On the other hand, when communication happens in a foreign language, people experience a temporary decline in their thinking ability, and so are not able to make optimal decisions.
The nonexistence of a common language in which both the service provider and the customer can communicate comfortably in could also lead to misunderstandings which may affect consumers’ perceptions of the quality of the service. Allocational and informational efficiency in our markets would greatly improve if a majority of clients understand the features of the products they engage with better and are comfortable enough to ask questions when unclear. The poor communication linkages in our financial system has created room for third parties who serve primarily as translators. This has consequently created several trust issues, as individuals have trusted others they believe understand English better to help them navigate the financial landscape only to be duped. In my opinion several individuals self-exclude from our financial markets because they do not understand the products and services that are offered, and they do not understand these products because they are designed and sold in a language foreign to them.
Therefore, though financial institutions and policymakers have invested significant efforts in ensuring a more inclusive financial market, there is a need to put in more effort to bridge the language gap. Financial institutions must also go beyond the traditional marketing strategy and find an innovative way of communicating with and attracting people who are not proficient in the English Language. It is time government and regulators stepped in with policies to bridge this gap as well. I admit it is a complicated problem, but I believe strongly that it is a critical problem. Effectively addressing this gap will be a worthwhile investment as financial institutions will not be addressing a minority group, but they will be venturing into a vast untapped market in need of safe and trustworthy financial services.
