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The finance and banking sector is constantly evolving, and traditional institutions now find themselves in a race to keep pace with the rise of innovative Fintech and new financial services firms. These newcomers have made UX a cornerstone of their strategy, offering customers intuitive, and satisfying user experiences. Add the continued closures of brick-and-mortar bank branches to the mix, financial institutions have begun to recognize the pivotal role UX must play in transitioning their business.
Finance and banking can be overwhelming for the average person, with complex processes and jargon that most do not fully grasp. In this way UX professionals can act as a bridge between institutions and their customers. Armed with their knowledge of user behavior, they can streamline banking experiences by simplifying processes and presenting complex information in a way that is visually appealing. Information architects help organize information based on user needs, leading to intuitive and user-friendly interfaces that resonate with customers.
The pandemic has accelerated the adoption of mobile banking. Today, very few people visit physical bank branches, with a significant majority opting for mobile banking applications. As 98% of millennials and 99% of Gen Z users use mobile banking apps for various financial tasks, crafting an intuitive and easy-to-use mobile banking experience has become paramount. This factor directly impacts customer loyalty, retention, and the ability to compete with Fintech firms and platforms that already place a strong emphasis on UX and customer experience (CX).
Investing in UX not only elevates customer experience but also drives profitability for banking institutions. Research suggests that investing as little as one dollar in UX can yield up to a hundred dollars in return. An intuitively designed user interface, whether for mobile or desktop, can significantly boost conversion rates, leading to increased user growth and retention. What's more, nearly a quarter of customers who have had a positive UX experience with a firm tend to share their experiences with others, enhancing word-of-mouth marketing and brand reputation.
In the financial industry, trust is a critical aspect of customer relationships. Without it, people would quite literally take their money elsewhere. A seamless and satisfying design, along with simple authentication processes, can go a long way in fostering confidence among users. Robust UX research, in conjunction with industry expertise and software teams, ensures that product updates are smooth and hassle-free for customers and regulators alike. Striking the balance between user-centricity and compliance is essential in today's banking sector.
In a world defined by technological change and emergent tools and platforms, the banking and finance sectors must prioritize user experience to stay relevant. UX professionals and Experience Designers bring a wealth of knowledge and skills to the table, enabling banks to create user-friendly interfaces, build trust, and enhance customer loyalty. Digital and mobile banking today is the norm. Financial institutions will need to continue to emphasize and invest more resources in UX to realize and retain new and existing customers.
Photo Credit: Unsplash
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