How To Create the Best Digital Banking UX

The right approach to UX design in banking can significantly enhance financial management and make it more enjoyable for customers. Some digital banking apps prioritize competition over customer satisfaction. However, focusing on exceptional user experiences can strengthen loyalty and trust in your brand. Moreover, investing in UX design allows you to create a seamless and intuitive digital banking experience setting your brand apart.

We decided to share the Arounda team's vision of what a high-quality UX in digital banking should look like to put you ahead of the competition.

Table of Contents

• What is User Experience in Banking? 

• Tips For Best User Experience in Digital Banking

• How Can Banks Balance Security and Usability in UX Design?

• How Can UX Design Boost Banks’ Profitability?

• Summary

What is User Experience in Banking? 

User experience (UX) in banking refers to customers' overall experience when interacting with a bank's products and services. It includes online and mobile banking platforms, ATMs, customer service channels, and in-person interactions at bank branches. But in this article, we will focus on digital banking UX.

UX in banking is crucial because it impacts customers' perception of a bank and their desire to keep using its services. A good UX increases customer loyalty and satisfaction. Meanwhile, a harmful UX leads to frustration, complaints, and customer loss.

Banks that rank UX design can create intuitive, easy-to-use interfaces and provide customers with quick access to the required information. For example, a well-designed mobile banking app may help customers check their account balances, transfer funds, and pay bills in just a few taps.

Tips For Best User Experience in Digital Banking

First of all, a design team should conduct user research to understand your customers' needs and preferences to ensure a good banking UX design. They should also regularly test and iterate products and services based on customer feedback. Finally, following the 10 Main Laws for UX Designers we have recently explained in our article is essential.

Here are the 5 principles of digital banking UX design to consider:

1. Focus on security. Ensure your bank's online and mobile platforms can protect customers' sensitive information. Use strong passwords, two-factor authentication, and other security measures to keep customers' accounts safe.

2. Keep it simple and intuitive. The financial sector has specific terms one needs to understand when creating a banking app or platform. Provide simple instructions and make sure the content is as clear as possible. Straightforward navigation will help customers complete their desired tasks hassle-free.

3. Make it easy to contact customer support. Provide many channels to contact the support team, including phone, email, and chat. Ensure that customer support is available 24/7 and responds promptly to user inquiries. It’s even better if your app resolves issues before they arise. For example, create a separate section with tips, instructions, and FAQs.

4. Personalize the experience. Use customer data and insights to personalize the user experience. For example, recommend relevant products and services based on customers' transaction history or provide personalized alerts for account activities.

5. Provide self-service options. Allow customers to create their own workspace. It can save their time and improve the overall experience. The more options your app offers to meet user needs, the better the digital banking UX.

How Can Banks Balance Security and Usability in UX Design?

While security is a top priority, it shouldn’t compromise the usability and convenience of your design. Here are some strategies to achieve it:

• Use multi-factor authentication (MFA) to enhance security while keeping the user experience simple and intuitive. MFA combines two or more authentication methods, such as passwords and fingerprints.

• Provide clear and concise instructions when customers must complete security measures, such as changing passwords or verifying identities.

• Adopt risk-based authentication to customize security measures based on the transaction risk level. For example, a high-value transaction may require additional authentication steps. In contrast, a routine transaction may only require a password.

How Can UX Design Boost Banks’ Profitability?

These days, customers tend to expect seamless digital experiences. So banks need to keep up with these expectations to remain competitive. By investing in UX design, your fintech business can stand out from the competition and create a customer-centric culture leading to increased profits. Good banking UX design can do it in several ways:

• Increased customer loyalty. When banks provide a positive and seamless user experience, customers are more likely to remain loyal. Thus, they will continue using a bank's products and services. It can lead to increased customer retention and a higher customer lifetime value.

• Reduced customer churn. A poor user experience can lead to frustrated customers. As a result, they may switch to another bank. By improving the user experience, banks can reduce churn rates and retain more customers.

• Higher transaction volumes. A well-designed user experience can make it easier for customers to complete transactions, such as transferring funds or paying bills. It will increase transaction volumes and generate more revenue for your bank.

• Cross-selling and upselling opportunities. A positive user experience allows cross-selling and upselling a bank's products and services. For example, a customer with a positive experience with a mobile banking app will be more likely to sign up for a credit card or other financial product.

• An advantage over the competition. Investing in UX design can also help banks stand out from their competitors, attracting new customers looking for a better digital experience. With a well-designed digital platform that is easy to use and navigate, your FinTech solution will offer a clear competitive advantage.

Summary

Financial management requires special tools. And you can create them using the principles we have described above. We have tried all these UX design banking tips for over five years of experience in the FinTech industry. Of course, a great UX in digital banking mostly depends on following Human Centered design rules. But it’s also worth paying special attention to data protection and clear instructions.

Good UX design reduces operational costs by offering customers a user-friendly digital platform. It eliminates the need for physical branches and personnel. It can also help banks save on overhead costs, increase efficiency, and improve their bottom line.

Arounda knows how to enhance the user experience for FinTech products. For example, as part of the Gigzi project, we worked on the UX/UI design of landing pages, blogs, and tech documentation. As a result, the number of satisfied customers is increasing every day. Contact us, and we will provide a unique UX for your project!