While UX and application development have sparked remarkable changes in numerous industries, the FinTech sector remains a challenging space for innovation and transformation. There are several contributing factors to this state of affairs, the most prominent being financial regulations. Unlike most other industries, the financial sector remains highly regulated and these regulations change quite drastically between the borders of both time and space (i.e.: year to year and within different countries, states, etc).
This means that anyone getting into the FinTech space generally needs to approach it with a battery of lawyers and accountants, or have themselves mired in tons of documentation that will keep them from designing anything at all at least for a good year or so.
What does customer trust mean for a FinTech product?
Customer trust in a FinTech product is the bedrock upon which its success is built. In this industry, it signifies that users believe in the reliability, security, and effectiveness of the product. Trust means that customers have faith in the platform's ability to safeguard their financial data, conduct transactions seamlessly, and provide accurate information. Moreover, trust extends to the confidence that the FinTech provider will continuously enhance the product to meet evolving needs. Without customer trust, even the most innovative FinTech solutions may struggle to gain a foothold in this competitive landscape. As per the survey conducted by Morning Consult, only 23% of participants expressed trust in fintech companies, highlighting a critical challenge in building customer trust. Let’s have a look at different customer aspects of trust in a FinTech product.
Transparency
In the world of FinTech, transparency means providing clear and open information about the product's features, fees, and how it operates. It's about ensuring that customers fully understand what they're getting into, with no hidden surprises. A transparent FinTech platform maintains straightforward and easily accessible communication about its services, making customers feel confident and informed.
Reliability
Reliability is the cornerstone of trust in the FinTech space. It encompasses the product's consistency in performing its core functions without glitches or errors. A reliable FinTech platform ensures that transactions occur without hiccups and that the technology behind it works seamlessly, enhancing users' confidence in its capability.
Security
Security is a paramount concern in FinTech. Customers trust their financial information with these platforms, making it vital that their data is safeguarded. A trustworthy FinTech product employs strong encryption, robust cybersecurity measures, and compliance with industry standards to protect customer information from breaches and cyber threats.
Accountability
Accountability in FinTech refers to taking responsibility for errors or issues promptly. When a FinTech product acknowledges its mistakes and works to rectify them, it reinforces trust. Customers appreciate knowing they can rely on the provider to address problems and ensure their financial well-being.
Compliance
Compliance is an essential aspect of trust in the highly regulated financial industry. Trustworthy FinTech platforms adhere to the legal and regulatory framework that governs their operations. This includes measures to prevent fraud and money laundering, and ensuring they meet all required standards.
Customer Support
Customer support is the lifeline of trust in FinTech. When users encounter issues or need assistance, accessible and helpful customer support is crucial. Promptly addressing customer concerns, inquiries, or problems builds trust by showing that the FinTech provider cares about its users' experiences and needs.
How UX makes a difference in FinTech
In the fast-evolving landscape of financial technology, user experience (UX) is proving to be the differentiator that can make or break a FinTech product. FinTech, with its complex financial services, requires more than just efficient code; it demands a level of design that puts the user first. This user-centric approach transforms the way we interact with financial services, making them more accessible, secure, and intuitive.
One of the most apparent areas where UX shines in FinTech is the simplification of financial processes. While traditional financial institutions are often associated with lengthy, jargon-filled forms and time-consuming transactions, FinTech platforms prioritize user-friendly design. UX principles break down these barriers, offering streamlined onboarding processes, efficient transaction interfaces, and clear data visualization tools. Users can manage their finances with confidence, no matter their financial expertise, thanks to this simplified experience. Moreover, UX design addresses trust and security. The financial industry thrives on trust, and FinTech companies understand this. Trust indicators, robust security features, and transparent communication about data protection are seamlessly integrated into FinTech platforms. Users need to feel secure when dealing with their finances, and FinTech services prioritize these aspects to instill confidence.
UX in FinTech isn't confined to aesthetics; it's a fundamental aspect that shapes the future of financial services. As the industry continues to disrupt traditional banking, it's the user-centric experience that will ultimately define the success of these innovative financial solutions. By offering efficient onboarding, clear data visualization, personalized recommendations, and an emphasis on trust, FinTech services backed by strong UX design are revolutionizing the way we bank, invest, and manage our finances.
FinTech UX design challenges that affect customer trust
Compliance
This one ensures that no FinTech product you build will be truly borderless. Depending on how many countries or sometimes even states within a country, you are hoping to launch your app, you may find that certain revisions have to be made to accommodate different regulations in different markets.
Security
Secondly, FinTech applications have a host of security requirements and protocols that other applications may not have. UX designers have to take these into account to minimize fraud, data breaches, or identity theft.
Complexity
Given the first two challenges, you can think that the complexity arising from those would be sufficient to make the most experienced UX engineer take a step back and reach for some coffee... but FinTech applications come with an additional layer of complexity considering their features. Given the handling of finances and financial data, most FinTech applications are complicated by nature. A UX engineer has to work around multiple functions and features and figure out how to best include them all in a way that doesn't overwhelm the user.
Make FinTech products better with a great user experience
In the world of FinTech, the role of UX can be the deciding factor between success and obscurity. A well-designed and intuitive interface can draw users in, making them feel confident and comfortable while navigating complex financial tasks. On the other hand, a confusing or frustrating UX can quickly drive them away to competing platforms. FinTech products must balance cutting-edge financial services with a user-friendly design to not only attract users but also retain them. In this competitive landscape, neglecting the significance of UX can indeed make or break a FinTech product. Let’s look at some simple UX principles below that can help to make a FinTech product perform better than its peers in the ever-growing competition.
Avoid jargon
The financial industry is full of complex jargon and processes. It's important to remember that while these help the industry to function, they don't belong in your application. As a UX engineer, you need to shield your users from the technicalities of FinTech while providing them access to its features. This helps to build trust with users who won't be as comfortable navigating the heavy jargon of the financial industry.
Minimalistic design
Keep your UIs clean and minimalistic. Display only critical information in your UIs, and don't let them become cluttered. Keep UIs interactive and allow users to progress step by step, providing only the information they need to complete each step of a task.
Simplified onboarding
FinTech companies recognize that the first impression matters. A streamlined and user-friendly onboarding process is essential. Whether it's setting up an account, applying for a loan, or investing, users should find it intuitive, secure, and fast. Following the best UX practices ensures that the process is straightforward, regardless of a user's financial expertise.
Customised inputs
Many FinTech apps have several form-based interfaces that are typically difficult for users to navigate and use. Customizing the inputs for these forms such as date pickers or number pads where relevant makes a user’s life easier.
Visualized data
Understanding financial data is a challenge for many. FinTech services should employ various forms of data visualization to help users interpret their financial information. Charts, graphs, and other visual tools make it easier for users to comprehend their financial status and make informed decisions.
24x7 customer support
UX design extends to customer support channels as well. This ensures that users can easily find help when needed, whether through in-app chat, email, or phone support. Quick and responsive assistance fosters trust and confidence in the FinTech service.
Mobile friendly
Many people avoid using desktop applications in favour of mobile. Businesses must understand their user demographics and ensure that their FinTech applications feature a mobile version capable of completing tasks at the same level of ease expected from desktop applications.
