Analyzing the Prospect of UX in Banking

Ashish M. Shaji

20 Jul, 2020

As technology advances to the next level, the banks need to strategize on creating the best User Experience (UX) in banking that resonates with their customers. Having a good UX and user interface is vital in digital banking industries, and in this article, we shall have a brief overview of UX in banking.

What is UX?

UX stands for User Experience. It involves a process where products or services are provided in a meaningful manner by providing relevant experience to users. User experience embodies all aspects of end-users’ interaction with the company, its services, or products.

What is the Significance of UX in Banking?

The present thinking of the customers is based on handling all affairs at their homes. This is like shopping online these days, and banks also function in the same form where the customers look for good user experience in terms of a variety of services, deals, and quick response.

Knowing that online finance and mobile banking is gaining momentum by emerging rapidly, financial institutions like banks must ensure that their UX is laudable. Those banks that fail in keeping their customers at ease by providing user-friendly services will only be affected tremendously. It is because the world today is after convenience and is looking for friendly solutions to resolve their queries.  

A strong UX allows banks to deliver a frictionless and straightforward banking experience to their users. It can also improve customer satisfaction and bring in new customers to banks as people are after convenience and comfort. The significance of UX in banking can be gauged from the fact that users are attracted to services that take care of their needs, and it should be considered as an opportunity for banks to provide its users with excellent user experience.

What is the benefit of having a good UX in Banking?

There are numerous benefits to having a good User Experience (UX). These are as follows:

• A good UX means engaging the customers and addressing their needs. It allows the user to work logically and in an easy and systematic manner.
• A good UX would mean the addition of more loyal customers who will engage with the bank for more extended periods of time, and it will help in building a sense of trust towards the bank, which is critical in the long run.
• Having a good UX would also ensure that the support costs are reduced. Say, for example, if a bank provides an app to its customers and if that app is poorly designed, then there will be a requirement of training, documentation, and other support, which is costly. An app that is easy to use would put less pressure on employees as well as on customers.
• Better user experience would also result in productivity improvements. When the increased productivity over the number of users and hours of the day, each user is active is considered, the financial impact is apparent and substantial.
• Providing a great UX requires a good investment, but therein lies its most significant benefit as the return on such investment is high. This is what encourages more and more banks to provide improved UX. 

What are the ways through which great UX can be provided?

As per the report of the business insider, the following measures can be taken to provide a great UX in banking:

• Banks must put customers in the midst of their initiatives by involving them in each stage of the process. It will ensure maximum uptake of their initiatives.
• They should employ the best UX design methodology to bring the best solutions to the challenges faced by the users.
• Banks must create design teams that have the expertise to generate meaningful experiences. They should collaborate with other teams to identify solutions that meet the needs of users, banks’ business needs, etc.   
• As more and more customer interactions are taking place on digital channels, banks should not neglect physical channels as the customer experience involves these channels as well.
• Banks should look for the right tools that can measure the success of their UX initiatives to link User Experience to business outcomes.
• Banks must work on developing easy and cheap instant money movement, financial safety, and simplified onboarding to provide a great UX to their customers.

What are some of the common errors committed while looking to provide UX in banking?

There are occasions when, while providing UX, there may be instances of some common errors. These errors must be avoided in order to provide a seamless UX to customers.

Displaying too much data sometimes can confuse the users, or it can make them uncomfortable. Likewise, having way too many features can increase the user’s cognitive load. These factors can affect banks and customer relationships. Therefore it must be avoided.

Another common mistake could be making the users feel bore with banking apps. There must be clean design with a smooth flow that attracts the users rather than boring them.

The language used by the banks should be understandable by a layman. Sometimes the banks may communicate with their users in difficult language that makes it tough for users to understand. This is one of the ignored common steps of providing a great UX.

Security is a significant issue in banking, and therefore the banks must communicate to its users and make them feel safe about their money. Sometimes the bank may miss this aspect, which can affect their relationship in the long run.

Conclusion

Also, read: Covid-19 Impact on Digital Banking in India