Importance of UX in Mobile Banking

Importance of UX in Mobile Banking

One of the most common buzzwords you’ll likely come across in mobile app design is UX, short for user experience. While the security features of your app and functional integrity are of key importance, UX is one area you do not want to compromise on. This is because when it comes to bankingapplications, the stakes are much higher – which means that user centricity is the key to success.

Banking apps deserve special mention here because they require more attention from the end-user, than, for example, gaming apps. In fact, 70% of online businesses fail because of unoptimized UX.

Customers Seek Experiences

Banks usually have the incentive, infrastructure, and customer base needed to implement a good user experience. However, most banks seem to prioritize a product-centered approach instead of improving user experience. But we know from a growing body of statistics that online users crave more of the experience side of things.

UX in banking design plays a pivotal role in fostering that all-too important trust between banks and their customers. This is because millions of people use these services to go about their daily lives. Most users will value ease of use over extra features in their banking app any time of the day. All things being equal, if a user was asked to choose between two banks, one with a feature-rich app and terrible UX, and the other with few features but excellent UX, they would most definitely go with the latter.

UX instills confidence in online users and subconsciously inspires them to continue relying on the bank’s products. With apps like Uber, Facebook, and, Instagram, online users now expect their banks and payment apps to offer a similar app experience. In fact, a 2018 report by DBR Research specifically mentions the removal of ‘friction’ from the customer journey in retail banking.

In the same report, most banks responded to this by prioritizing the complete overhaul and redesign of the UX features of both their app and website interfaces.

Personalization is Key to UX

Another aspect of UX in banking apps is personalization of various components. Apps that go the extra mile in improving individualized experiences will notice a sharp improvement in sales. Banks and fintech institutions would do well to learn from e-commerce stores when it comes to personalized services. For instance, Amazon would only show you the type of products you would most frequently search for.

Other retailers, like Walmart, would send text messages or emails to users when they receive new stock or discounts. This personalization of individual experiences is the definitive means of improving user experience, one that banks should definitely emulate.

Identifying the 5 Areas of Opportunity in UX Design

UX is a process that focuses on the interaction between online users and the app. It combines aspects of market research, design, technology, and psychology. Top-notch UX ensures that the banking app is easy to use and intuitive. Below are just five areas that improve with better UX in banking apps.

1. Prompt Access to Financial Services

Intuitive UX layouts allow users to gain easy access to their bank accounts in a short few seconds. Many users need quick access to their bank account because they have a crucial bill that needs their urgent attention, remaining balances to tend to, or transferring online money to friends who need it the most. Any modern banking app should beequipped with advanced security features to make this process accessible.

2. Allowing Information at a Quick Glance

Online users don’t have the time to go through detailed bank statements every time they need an update. In fact, most internet users have attention spans of less than 8 seconds. Banking apps have the burden of facilitating tiny attention spans and to provide all crucial information at a glance.

For instance, users should be able to view their remaining balance, payout details, routine expenses, debt details, mortgage payments, etc. on a single dashboard.

It would also be helpful to viewers if they can get quick access to transactions they made in the present month.

3. Being Able to Access All Accounts

The new UX design in apps should offer users the ability to access all their accounts in the same applications. It doesn’t have to be fully fleshed out, just a cursory view of each account on a single app should help users manage their deposits and debit accounts, expenses, and credit records, as well as manage their investment records. The idea is to give users a definitive approach to their banking history.

Should they feel the need to access more details, they can then make the decision to open the account in a separate online session.

4. Overview of User’s Financial Usage and Activities

An intuitive UX design allows users to keep a check on the flow of their money. Because a large number of vendors these days facilitate cashless transactions, it has become even more important for online users to have awareness of their expenses. This is important not only as a safety measure but also allows users to improve their financial planning and strategize future outlays.

5. Assistance with Financial Planning

Speaking of financial planning, an intuitive UX layout in banking apps assist users with advanced financial planning decisions. Since they have easier access to important financial statistics on a single dashboard, users can make more well-informed planning decisions.

This includes saving funds for higher education, buying a new car, planning a holiday, saving for retirement, mortgage payments, investing in stocks – the list goes on. The banking app also allows customers to plan their next financial growth by setting automatic payment transactions of the funds into investment accounts and reserves.

The Bottom Line: Banks Must Keep Up With The Times

The sooner banks realize that we’re now in a mobile-first world, the better. 90% of people under the age of 35 no longer rely on their computers and prefer to use their phones instead. Yet most banks refuse to capitalize on mobile banking and don’t offer a robust digital banking experience we have all come to expect.

This has created a void for smaller, more agile fintech companies to fill in demand as they address UX issues that banks hesitate to dive into. At the end of the day, it’s not about what your app does – it’s how you get stuff done.