May 6, 2025

In an industry built on trust, the financial services sector continues to grapple with a peculiar problem: a stubborn addiction to jargon.

For communications professionals, it's the stuff of nightmares. For those outside the finance bubble, it’s at best a peculiar quirk and at worst, an impenetrable wall. Investment jargon may appear harmless or even efficient to insiders, serving as a kind of coded shorthand. But for clients and everyday investors, it often obscures rather than illuminates, eroding confidence and building barriers instead of bridges.

And yet, it persists.

Jargon survives because it signals authority and efficiency within the industry. Phrases like “overweight equities” or “constructive positioning” sound impressive, even strategic. But here’s the uncomfortable truth: in many cases, jargon conceals more than it clarifies. It muddies meaning, weakens trust, and excludes the very people we’re trying to reach.

This isn’t just a matter of semantics. In finance, where words like “CDOs,” “naked shorts,” and “dead-cat bounces” have real-world implications, misunderstanding can have severe consequences. Jargon, when unchecked, doesn’t just confuse but italienates.

Some of the worst offenders in finance include terms like “overweight” and “underweight,”commonly used in reports and interviews. What they really mean is simply that someone has taken a larger or smaller position in a stock. Why not just say that?

Then there’s “bets” and “wagers”, part of our language that instantly evokes gambling rather than responsible investing. “We’re making a calculated investment decision” isa far more accurate and reassuring alternative.

Words like “potential”also deserve scrutiny. They sound vague and noncommittal. Instead, confident and factual language should be used, framing future performance as clearly defined objectives or goals. “Constructive,” too, is an example of hazy optimism. Rather than saying something is constructive, be specific about what’s driving your outlook.

Alternative asset managers often use the term “dry powder,” but this conjures images of theWild West more than the boardroom. “Available capital” or “cash reserves” are plain, accurate, and far less theatrical.

When companies announce mergers and acquisitions, “synergies” tends to be the go-to word. But it’s so overused it has lost meaning. Be direct: are you referring to cost savings or operational efficiencies?

Meteorological metaphors like “tailwinds” and “headwinds” may sound poetic, but they’re not always intuitive. Describing these simply as “positive drivers” or “challenges”gets the message across more clearly.

And finally, the word “monetise” has become synonymous with extracting value in ways that can make audiences uneasy, especially when it comes to user data. “Generate revenue from” is not only more specific, but also more transparent.

Clear, plain language doesn’t dilute expertise, but it amplifies it. Stripping away jargon isn’t about dumbing down. It’s about smart communication that respects the audience’s need for clarity and earns their trust.

So next time you’re tempted to talk about your “strategic positioning amid macroeconomic headwinds,” pause. Ask yourself: What do I really mean? Then say that: clearly, simply and like you mean it.

By Simrita Virk.