by: Grow VC Group
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Guest post by Brian Jens

As a rule, financial decisions are ambiguous and contradictory for the most laymen of finance. This fact is not new to UX professionals: they know that any financial investment is always a challenge for an amateur. There are a couple of reasons for that:

  • Lack of opportunity to clearly predict the future. A man who doesn’t know what to expect in future always considers any financial input as a risky one. Sometimes the problem is getting even more exacerbated by financial instability in some countries. The inability to soberly analyze the situation along with financial illiteracy leads to the fact that some people avoid using bank and financial services or use them marginally.
  • Lack of discipline. Saving money requires discipline and rejection of short-term benefits that can be obtained right at the moment or in near future.
  • Getting confused because of too many available options. Today both the state-owned banks and private financial institutions offer a wide variety of different opportunities. For the uninformed it’s quite hard to choose the best one and sometimes it even seems that it’s better to stay away from the intricate systems that can have pitfalls.

The abovementioned problems are both realities of human nature and lack of education and information. People often don’t understand (or, at least, don’t fully understand) the mechanics of payments, withdrawals, etc. Despite most people at intellectual level do know that if using financial services they will likely make their life better, they refuse to it since they want to stay in the comfort zone.

A UX design is intended to smooth the disconnection between what people think, say and actually do. UX is not just about making your services clearer and more attractive – it’s about setting a strong connection with new users and maximum retention of the “old” audience.

A few common benefits of UX:

  • Saving of operational costs.
  • Growth in profits and revenue.
  • Reaching a wider audience through support systems and looks that help to solve any problem a client can face with.

Let’s a have a look at what banks have done in regard to UX for the last decades:

  • Convenient online banking systems, which have improved customers’ interaction with banks.
  • Outsourcing of customer service and administrative roles.
  • Convenient contactless payment systems which have greatly facilitated financial operations.

However, there’s still a wide gap between the ideal UX and what we have now. Below we’ll consider some essential improvements that have to be made in near future.

Up-To-Date Technologies for Convenience

Many banks have flexible online systems already. However in the nearest future, this UX will be applied universally. The main task in this field is to minimize the manual labor via means of live chats, virtual assistance applications, personal finance planning, etc.

As we said, live chats and virtual assistants have already been seen in the market, but in the future with technologies like voice biometrics, it will become even more convenient to interact. Just one point to watch out here is that automation should not harm the UX.

As for the personal finance managers, the first one appeared about 10 years ago and since that time financial institutions have developed a lot of tools to manage clients’ daily spends. By the way, such inbuilt calculators give considerable benefits both for users and the companies, since the latter get an opportunity to better track the behavior of their audience.

Social Banking

Well, today it’s hard to find a single person that doesn’t use social networks. Based on this, some banks are now providing their services directly from social media. At the date, the main platform is Facebook, but soon social banking will spread over the major social networks.

That’s a great shift in UX and content personalization!

UX-based Mobile Technologies

In recent years, the number of Internet users from mobile devices has exceeded 50% of the total amount, which means financial services should be adapted to this audience. The most common practice for today is connecting smartphones with credit cards or bank accounts. It is very convenient, but still not used to its full potential. For example, Starbucks have an app for a speedy purchase even including tip to the barista.

Internet of Things

Here you can see two main approaches to improve:

  • The introduction of technologies that present finance services (for example, teller services) to potential customers providing notifications or alerts.
  • Deeper integration of financial applications into home automation to gather and process the data in order to give predictions for future financial needs and expenses.

Personalization

Personalization is becoming extremely important in the era when everyone wants to be an individual. We mean that bank clients don’t want to feel themselves like a few more profiles in the system. The modern market requires personal approach to every client and personalization is the key.

Any respectful financial institution should collect data about its customers, including their preferences, behavior, and other peculiarities. Today you should not just create content but to adapt it at least for each target group of your audience. At the end of the day, any financial service with deep content personalization is much more competitive in the market due to cost reduction, higher closing ratio and less staff required.

Contests and Specials

Interacting with a user beyond transactions allows to keep him as a client for a longer time. This concept is called gamification and it’s about introducing special reward programs and points to collect. Let your client imagine the interaction like a kind of a game where he can take certain advantages.

Moreover, setting such contests or special programs, you’ll get more customer data (interests, social interactions, location, etc) for further personalization.

The most popular ways of gamification are:

  • Special points for registering in a system.
  • Referral programs.
  • Special conditions for the most active clients and those who spent large sums.

Advanced user experience is a necessary condition to be in demand on the modern financial market. UX is about mutual benefits: it makes customers’ life simpler and at the same time allows a company to get the necessary information in order to meet expectations in future.

UX in fintech

Bio:

Brian Jens is currently working at logo design contest website. He loves travelling and all up-to-date- technical stuff, but his primary passion is design with all the connected sub areas. He’s always on the crest of a way and he’s always aware of what’s going on around.


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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Monday, February 15th, 2016 at 2:00 pm and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.