The Most Difficult Challenge in Creating Financial Products
Alex Kreger
UXDA Founder | Premium UX Design for Financial Products | Top 50 Fintech Thought Leader | Forbes Business Council
In the modern financial industry, the most difficult challenge isn’t about mastering the latest technology, integrating with core banking systems, acquiring customers, or even attracting top talent to your team. While these are all critical elements, the real test lies in designing a digital experience that customers will truly love—and stay loyal to.
To achieve this, it’s essential to:
?? Understand Customer Needs: Dive deep into research to uncover what your customers genuinely want and need.
?? Innovate Relentlessly: Embrace and implement cutting-edge innovations that enhance the user experience.
?? Foster a Customer-Centric Culture: Build a team and culture that prioritizes the customer in every decision.
?? Establish a Digital-First Business: Ensure your business operations are designed for the digital age, seamlessly integrated with the way customers live and work.
?? Continuously Collect Feedback: Regularly gather and act on customer feedback to keep improving the digital experience.
It’s this relentless focus on designing an exceptional digital journey that turns users into loyal advocates of your product. In the end, it’s not just about building financial products—it’s about building trust and delight in every interaction.
I'm Alex Kreger from the financial UX design agency UXDA . Welcome to this exclusive newsletter to stay up-to-date with the next-gen product UX design in the banking and fintech industry. If you have a challenge – let us know >>
Financial Services Design: Even the Best Designers Fail Without Specialization
Recently, I had an insightful conversation with the head of a financial company who posed a familiar question: "How much does it cost for UXDA to fully design and finish a mobile banking app?"?This query, while common, misses the broader picture.
I explained, “This is the wrong question. Asking about the cost of finishing a mobile banking app is akin to asking what specific exercise you should do to become strong or how many books you should read to become smart. Everything depends on your lifestyle and on your daily routine. So, the key to delivering the best digital experience is always an ongoing investment.”
A basic mobile banking app can be designed and proceed to development in six months with an initial investment of around $300,000, with more complex solutions potentially exceeding one year and $1 million. However, this is merely the starting point. Continuous investments are essential for maintaining and enhancing the user experience.
15 Design Concepts Every Financial Product Owner Should Know and Use
Digital product ownership is probably the most challenging job in finance nowadays as financial products directly influence the company's revenue and reputation. Given the financial sector's reliance on customer trust, it is essential for business success to ensure products meet customer needs, comply with regulations and remain competitive. Any mishandling of products can lead to loss of confidence, legal issues and damage to the brand.
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By applying these 15 design concepts, product owners can empathize with users, organize content logically and design interactions that are both accessible and visually appealing. This approach leads to higher user satisfaction, better usability and increased adoption rates, which ultimately result in improved user retention, reduced support costs and a stronger competitive edge in the financial market.
AI in Banking: Are Banks Ready for the User Experience Revolution?
The integration of AI into banking is poised to dramatically transform the industry within the next five years, driven by the breakthrough success of technologies like ChatGPT. This change is necessitated by the limitations inherent in human capabilities. As we gaze into the future, the disruptive potential of AI becomes evident, promising to revolutionize digital customer experiences and grant unprecedented capabilities to individuals.
While the full-scale implementation of AI in banking hasn't yet materialized, it's crucial to consider its future implications. The question isn't "what if" but "how" AI will impact us and "how" we can prepare for this transformation.
Perfecting Digital Banking Interface: Insights From The Apple Way
Steve Jobs returned to Apple for his second stint in 1997, got up on stage and asked everyone to tell him "what's wrong with this place." After some murmurings and bland responses from managers, Jobs cut everyone off, "It's the products! So what's wrong with the products?" Again, more murmurs, Jobs shouted, "The products suck!" Jobs returned to save Apple and turn it into a technology leader. He designed iconic products that changed the world.
Banks often assume that users want more—more features, more options, more complexity. This belief leads to bloated apps that are difficult to navigate and understand. A study by UXDA revealed that during usability testing, 100% of respondents identified navigation issues as a significant pain point in banking apps. The problem isn't a lack of features but an excess of them, leading to cognitive overload and user frustration.
Apple's philosophy is to "Think Different" by prioritizing simplicity and elegance. This approach has proven highly effective in creating intuitive, user-friendly products. Imagine if banking apps adopted a similar mindset: stripping away the unnecessary, focusing on the essential, and creating a seamless user experience that feels natural and effortless.
Why Digital Transformation Won't End The Need For Bank Modernization
The term "digital transformation" has become a buzzword in the banking sector. Its popularity has shot up over the past year, according to Google Trends. Many banks I've worked with envision a future where their digital infrastructure, once modernized, will run as smoothly and steadily as their brick-and-mortar branches once did.
But I believe that behind the shiny facade and corporate jargon lies a harsh reality: The digital transformation of the banking sector is an illusion, and the hope that modernization of any bank will ever end is a lie.