Currently the third-largest fintech market after the US and the UK, India has much potential to emerge as the global fintech leader. A report by EY and Chiratae reveals that the domestic fintech segment could grow tenfold in the coming decade. During this period, the industry has targeted an ambitious $1 trillion in AUM (assets under management) along with $200 billion in revenues.
Bolstering the feeling of optimism, Invest India (the domestic National Investment Promotion and Facilitation Agency) notes that India presently has more than 2,100 fintech players. As fintechs accelerate the penetration of financial services across India, however, most apps tend to offer similar features and functionalities.
In such a landscape, fintech players need to differentiate themselves by offering a more seamless, enjoyable and secure user experience (UX). Yet, believe it or not, as much as 58% of website banking content is considered too complex for average consumers. In such a scenario, UX and user interface (UI) design could make or mar a fintech firm’s future.
Herein, the proper UX design is crucial in ensuring users’ financial journey is easier by simplifying complex financial technology, making it more accessible and user-friendly. The right UX and UI are particularly necessary since fintech services can cover a broad spectrum of products and services such as mobile banking apps, payment systems, investment platforms and P2P (peer-to-peer) lending.
Top Reasons for Customer-centric Features
Here are some top reasons why customer-centric UX design is vital in the fintech universe:
Enhancing security and trust: Since fintechs deal with customers’ funds, every product must be fully secure and reliable to earn their trust. As financial firms can be vulnerable to an array of cyberattacks, implementing robust security steps such as data encryption and multi-factor authentication is critical. An extra layer of protection via quick biometric checks, such as facial recognition or fingerprint scans, can augment security without hindering users.
Trust, once broken, is difficult to win back. Therefore, it makes sense to invest in stringent cybersecurity measures because the cost of a data breach can be huge. As per IBM’s Cost of a Data Breach Report 2023, the global average cost was $4.45 million, representing a 15% rise over the past three years. No doubt, prevention remains better than a cure.
Frictionless onboarding and compliance: Fintech products must comply with stringent regulatory norms. Keeping this in mind, the onboarding process should be smooth so that the requisite information is obtained from users easily and accurately without any friction. Thereby it reduces the risk of non-compliance. Seamless onboarding is indispensable because most users can drop off if the onboarding is not smooth and the application process seems complicated.
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Accessibility and inclusivity: Considering the wide range of users, including customers with specific challenges, fintech platforms should be easily accessible via features such as screen readers as well as audio or visual cues. In this way, people with motor disabilities and visual impairments could also use the app. The UX design should also take into account users’ preferred language. Besides growing the overall user base, ease of access ensures inclusivity. This also makes it easy for inexperienced users to navigate the product successfully.
Customer conversion and retention: Investing in a user-centric design can convert customers who may simply be browsing to check the app’s features. Additionally, this aids better customer retention, which is important in the ultra-competitive fintech world. With a positive UX, customers remain more engaged with the app, reducing attrition rates and boosting loyalty. Effortless navigation, helpful notifications and prompt customer support can collectively contribute to positive UX.
Customisation and personalisation: Increasingly, fintechs are focussing on offering users personalised experiences via customised products. As fintech firms receive immense amounts of data highlighting user preferences and behaviour, personalised recommendations, customised content, and products along with relevant financial insights, all aid in making UX more enjoyable.
Mobile and cross-channel consistency: While a mobile-first design is imperative, the interfaces should be responsive across various screen sizes, with equal clarity on desktops. Although most users begin their journey with mobile phones, the UX shouldn’t be restricted to a mobile banking app. Instead, it must integrate mobile and desktop applications while ensuring real-time navigation and connectivity, allowing users to switch seamlessly across any channel (smartphone, tablet or desktop) to complete their tasks and transactions. Consequently, consistent service delivery and branding across every touchpoint is essential.
Intuitive, Empowering Designs
Today, fintech apps play a key role in assisting customers manage finances smoothly. Effective UX design empowers people to take charge of their financial dealings by simplifying complex financial processes and providing relevant insights. While legal provisions and compliance issues can pose multiple challenges to fintechs, user-friendly UX designs should be leveraged to present customers with the information in an enjoyable, easy-to-use way.
Several reports indicate the vast scope of the domestic fintech market. A Standard Chartered report mentions that the per capita income in India is $2,450, which is slated to touch $4,000 at the end of the decade. As a result, large cohorts of people will transition from a life centered on meeting daily expenses for essentials to enjoying surplus income and spending more on discretionary items. This will provide a major fillip to the financial services segment in the country since the real addressable consumer base would rise dramatically.
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Keeping these factors in mind and to live up to their full potential, fintechs should prioritise intuitive, efficient, and easy-to-use designs. Customisation, personalisation and ease of use can help customers feel more valued, fostering greater trust and, in turn, retaining long-term loyalty. All these elements will help fintech players stay ahead of their peers in a highly competitive marketplace.
Views expressed By Jayant Varma, Director and Head of Products – mPokket
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