The Importance of UX in Financial Services in 2023 cannot be understated.
Almost every aspect of modern life has been transformed by technological progress, and banking is no exception. Financial apps and websites now play a vital role in managing everyday financial business.
In addition to the number of physical branches of major companies decreasing, electronic payments are also on the rise, pointing to a shift in financial business from physical to digital platforms. Most of Europe’s most influential financial institutions have been closing branches as a transformation to a digital economy, including HSBC, Deutsche Bank, Lloyds Bank, Banco Santander, Banco del Norte, and Royal Bank of Scotland.
Despite striving to connect and understand their customers for decades, there still seems to be a wide gap. According to research by Forrester, 37% of customers think that they understand their organization’s customers accurately while most financial companies ignore their customer’s needs.
Everything is moving to cashless
We need not look further than Scandinavia to understand the impact that technology is having on our economic systems. Sweden will become the first cashless economy by 2030. Only 1% of all payments, sold in 2020, were handled in cash, while the remainder were transactions done by credit card. Apple pay, PayPal, Venmo, etc., have become the cornerstone for hassle-free transactions for a good reason, as their user experience is also beautifully simple.
Without the ability to meet user expectations, business models can fail regardless of their functionality and alignment to business objectives. To get a steady economic return from your product, you must make sure user expectations are understood and met. Not meeting these expectations results in customer rejection, so this should be a priority for application companies.
One of the most overlooked aspects is usability since users will refuse to use something if it does not deliver the level of usability they expect despite its range of capabilities. A common misconception is that functionality equates to usability and that functionality should take priority while usability follows, when in reality these are two completely separate aspects. Failure to incorporate applications’ usability puts both cost and time at risk for the company behind them.
Technology plays a major role in the success of Fintech.
In the world of fintech, UX design is used to differentiate fintech companies from their competitors and offer one-to-one services. Startup financial companies use agile, data-driven business models which have given them an edge over traditional financial services which have not yet caught up.
Companies in the fintech space understand the importance of optimizing the digital landscape so as to provide consumers with an accessible experience. This is achieved by emphasizing software and ensuring seamless integration across various devices. These companies strive to create an enjoyable and engaging customer journey that gives users a frictionless experience within a digital interface. The result is a high level of customer satisfaction and brand loyalty.
What makes UX important to financial companies?
An unflinching focus on customer experiences plays an integral role in any business conducted on a web platform. Customers should be provided with access to an efficient and engaging product to ensure their engagement.
If customers walk into a bank that is dimly lit, has hidden machines, and confusing in its physical layout, they will have a more frustrating experience. The same is true for your digital platform if you disregard the importance of a clean and accessible interface. In your digital financial platform, you don’t want to create a nonsensical and difficult-to-navigate digital environment as this will result in increased frustration and negativity from customers.
UX in Financial Services is a valuable investment that will benefit your business in the long run. Providing a good user experience is imperative for retaining customers, which statistics show nearly a quarter did so due to poor user experience.
A UX-focused online presence is essential for financial companies since most customers own either a smartphone or a laptop. More and more customers choose online banking over traditional forms; therefore, a user-focused online presence is a vital component of any marketing campaign. Further, as more companies realize the value of offering online banking services, companies must become more competitive by offering a higher quality of service and experience to retain customers. Investing in UX enables companies to provide an individualized user experience while making it accessible, fast, and convenient. UX in Financial Services is here to stay and we al need to adapt quickly.