Generally, from atechnical perspective, the UX/UI designing offintech products and solutions isnot much different from the process ofdeveloping other types ofdigital products and applications. Regardless ofthe type ofproduct orindustry, UX/UI design isall about creating apositive and unique user experience that will eventually increase user engagement, product satisfaction, and customer loyalty and retention. However, inpractice, UX/UI designers face anumber ofunique challenges and factors that can have amajor impact onthe efficiency and adoption ofthe final fintech product.
Inthe following section, we’ve outlined the top 5challenges for UX/UI designers offintech products.
Compliance and security
Fintechs, just like traditional financial service providers, are facing anincreasing burden ofregulatory and compliance requirements and restrictions due tothe high risks offraud and financial crime inthe sector. There are 3key areas, UX/UI designers need toconsider and take extra care when creating fintech products and applications, especially inthe retail banking space: cybercrime, KYC and AML.
Cybercrime— Fintech apps are amongst the most tempting targets for cyberattacks and criminals. Whilst one ofthe biggest benefits offintech isthat itdemocratises finance and gives customers greater accessibility, itironically does the same for cyber criminals and hackers. Cashless payments, online banking and digital transactions have opened aseries ofnew opportunities for hackers and cyber criminals toexploit the system and gain access tosensitive user information.
Inaddition tofinancial loss, cybersecurity breaches and criminal offences can significantly damage afintech’s brand reputation and customer trust. Inspiring confidence and trust inafintech product are thus proving tobeareal challenge for organisations, but it’s also anarea that UX/UI product designers can add atremendous value. Bysimply adding some extra security product features like password verifications, login limitations, card number view restrictions, etc., UX/UI designers infintech can provide that extra peace ofmind for the end user and inthis way facilitate the overall customer conversion process.
Know your customer (KYC)— KYC isstandard inthe financial services industry that ensures financial providers know their customers and fully understand their financial profiles which includes obtaining key information about acustomer’s individual financial position, risk appetite and financial literacy. KYC’s ultimate goal istoprotect both the end client and the financial provider. So, embedding effective KYC validation features and tools inthe product isyet another key consideration UX/UI designers infintech should take into account. Some ofthe most popular KYC features include AI-driven identity checks, proof ofaddress, and live photo orvideo streaming facial recognitions.
Anti-money-laundering (AML)— AML refers toall laws, regulations and procedures intended toprevent criminals from disguising illegally obtained funds aslegitimate income. Although AML laws generally apply toalimited range oftransactions, the implications ofafailed AML system can befar-reaching and affect afintech’s financial stability, growth and brand reputation. Similar toimplementing KYC, AML usually involves adding aseries ofvalidation steps and checks tothe onboarding process ofafintech app orproduct. But aneffective AML procedure doesn’t end with the opening ofthe account— AMLis acontinuous process that requires constant monitoring ofthe account’s activity throughout the user’s entire client lifecycle.
Below are some practical tips onhow UX/UI designers can tackle the compliance and security challenges when developing fintech products from Jessica Lascar, ex-product designer atUK fintech challengers Monzo and Monese.
“Despite the development ofnew technologies which makes itnow possible toimplement asecure approach ofgathering information without the need for face-to-face interaction, this can still bealengthy process. Potential customers will need tospend 5–15 minutes getting started and will have towait for anything between afew minutes toafew days before anaccount isactually opened.This iswhy it’s important tobreak upthe registration steps into small chunks, byfocusing onone task atatime and organising them into sections. Doing sowill make the whole process alot more digestible and provide the proper mental space tofocus onthe answers.
It’s also important toask just the right amount ofquestions inorder tomove onwith the application and give people the opportunity toadd more details later onifnecessary.
Simplifying the whole process, asthe first point ofinteraction, will also help tobuild trust and endure apositive relationship with customers through time.Also, with our busy and mobile lives, it’s important toensure that each piece ofinformation can beinserted atdifferent points intime. When they start anew application onamobile phone, customers may not have all the information required athand (e.g.anidentity document) and therefore might need tocontinue later that day... orbereminded todoso.”
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Financial complexity and jargon
Communicating complex financial products and concepts inahuman and simple way isone ofthe biggest challenges for UX/UI designers inthe fintech sector. The financial industry isfull ofjargon— think ofterms like cash flow, invoicing, ETFs, financial statement, etc. Using the right language toexplain afinancial feature ortool can make orbreak the entire user experience. This iswhereUX research becomes particularly important. Bystudying and understanding the exact profile ofthe target end user, UX/UI designers will beable toidentify the most suitable communication style and language for the product. Presenting complex financial information inavisual and interactive way with relevant graphics can further streamline and improve the user experience.
Friction balance
Inmost UX/UI design cases, eliminating friction isthe designer’s ultimate goal. Infintech, however, acertain level offriction isoften required, especially when auser’s personal finances are onthe line. According totechnical researcher Sean McGowan, “Increasing user friction for specific tasks isapillar offintechUX design. The inherent appeal offintech isthe ease ofuse, but itcannot besoeffortless that itiseasy for users tomake mistakes with their money.” Byadding just the right amount offriction atthe right time, fintechUX designers can ensure users remain satisfied with the overall product experience whilst instilling asense ofreliability that their finances are protected against any unwanted accidents.
Lack oftrust
The trust factor isanother major challenge for fintech UX/UI designers. For most users, money and personal finances are aquite delicate matter. Gaining access toauser’s personal finances and data usually requires much more rational thinking and behaviour. Asdiscussed earlier, fintech UX/UI designers can tackle this byadding some extra layers ofvalidation and reassurance that can further boost their confidence and trust inthe product.
Finance isboring
Traditionally, finances are considered tobedull and boring. One ofthe key challenges and opportunities for fintech UX/UI designers istomake traditional financial products more interesting and engaging. There are multiple tactics that designers can use toovercome this issue and add touches ofexcitement tofintech products like incorporating sound effects, motion graphics and personalised, conversational language. But probably one ofthe most popular ways tomake afintech app more interactive and fun isgamification. Gamification issimply the process ofusing game mechanisms innon-gaming scenarios. Adding game elements like waiting lists, rankings and reward systems can help fintechs increase user satisfaction, conversion and loyalty.
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