The Power of Storytelling: Why Great Communicators Win in Finance

Effective communication in finance is a crucial element that influences the daily operations of a business. Some individuals fail to understand its relevance and believe that it is not necessary for finance team members to be effective communicators because of their roles’ analytical nature. That said, people must keep in mind that such roles are evolving; now, they require financial professionals to be collaborative, and hence, it is vital that they are effective communicators.

When individuals working in finance are great storytellers, they have the ability to communicate in a way that is engaging as well as impactful. For instance, think about the Team Ignition show podcasts. The adventure storytellers use interesting hooks and build suspense to ensure that the listeners remain engaged. Similarly, when individuals in the finance world are able to structure complex information in a way that is clear and engaging, it can keep the listeners hooked. 

Moreover, when the communication is engaging and clear, professionals who are recipients of the information can avoid overthinking and hesitation. They are able to focus on the analysis part and make well-informed decisions instead of focusing on deciphering complex reports and jargon.

If you are interested in better understanding the power of storytelling in finance, keep reading.

Storytelling for finance professionals involvesmaking the most of the tendency of the human brain to process any complex information via a narrative. This results in more engaging pitches, persuasive finance presentations, and improved overall communication. If individuals understand the science of how storytelling impacts the brain, they can develop strong financial communication skills. This, in turn, can help formulate and implement effective communication strategies that can result in better financial reporting and decision-making.

Communicating via stories can result in the release of oxytocin, a hormone that increases trust and empathy. Hence, rather than relying solely on data, professionals can consider leveraging storytellingin finance during pitches and presentations to fulfill their objective. 

Moreover, when a professional incorporates storytelling into presentations, complex data becomes easier to comprehend. This is because the stories can result in the creation of vivid experiences that can create neurological engagement, which, in turn, leads to better understanding and recall. 

In addition, storytelling in finance can play a key role in bypassing cognitive biases and help in adapting to new business strategies or investment ideas. 

In the financial world, one does not just develop skills and knowledge within the business environment. It is possible to learn from adventure stories as well. Such stories have no relation whatsoever to financial data. 

However, these adventure stories can communicate core principles associated with finance, which include decision-making, risk management, leadership, and trust. Indeed, when professionals in the world of finance listen to experiences in relation to adventures, their mindset concerning risk changes.  They begin to think empathetically regarding how individuals respond to risk. 

These stories show how trust is important in situations involving a high level of pressure and stress, and put focus on the value of leadership in uncertain conditions and how it is important for the team. Also, such stories can positively influence analysts and other finance professionals to make decisions confidently in an ambiguous business environment. 

There are many financial podcasts, for example, the Planet Money (NPR) podcast, that do a great job of turning financial data into highly engaging narratives. Such podcasts leverage the power of storytelling in finance to improve the accessibility of financial information and make the data easy to understand for people. 

Since the information becomes easily understandable for the listeners, they are able to make informed decisions on the basis of it.

Note that these podcasts do not just stick to talking about market trends and financials. Their objective is to provide key insights that individuals can utilize to make decisions that can help their goals. 

The following pointers can help you leverage storytelling in finance effectively. 

• Focus on Why: It is important to focus on ‘why’ rather than ‘what’. Simply put, when writing a report or during a review, one should focus on the reasons behind the results, as it can provide the listeners with key insights. For example, focusing on why can help reveal what needs to be fixed to achieve better results. Focusing only on ‘what’ will not allow one to identify the causes of the results, and understanding the causes is vital to influence future results. 
• Focus On Engagement: When communicating, it is vital to have a solid hook right at the start so that the stakeholders stay engaged. For that, one can make it clear why the information being provided is important. This can help in getting the listeners’ attention. 
• Using Examples: It is vital to use hypothetical as well as real-world examples when communicating so that individuals can get better clarity, especially when discussing complex concepts and abstract ideas. Such examples can improve their understanding as well as retention. If you are wondering how to incorporate such examples when communicating, reading books can certainly help.

Let us look at some storytelling tips that can help one improve their financial communication skills.

• First, it is crucial to pinpoint the message that the professional is looking to deliver or communicate.
• Using the Situation, Task, Action, Result, or STAR technique can help professionals improve the structure of their pitches, presentations, reviews, meetings, reports, and public statements 
• Finance professionals should deliver the most crucial information first, as stakeholders often like it when people communicate important messages or information first.
• Individuals can make more persuasive finance presentations when they make use of analogies effectively. 
• Next, individuals can consider utilizing data visualization tools, for example, charts, pictures, maps, graphs, etc. Such images can play a key role in communicating key insights quickly, which can significantly improve decision-making. 
• Using compelling stories that help connect with the feelings of human beings is an important requirement for effective communicators in the finance world. 

Now that you know how to use storytelling in finance to better communicate complex information, make sure to make the most of it to improve collaboration and efficiency.