Product Design and Innovation: Why It Matters More Than Ever
Vacuumlabs
Product development services with a focus on fintech - encompassing strategy, design, engineering, and data science.
Nowadays, a bank’s image is all about its online presence. Customers no longer evaluate banks by their branches, they’re looking at the quality of the digital experience.
In fact, 76% of consumers would consider switching banks for better digital services.
Digital products are now the foundation of what banks offer. This is why smart banks are making digital product design and user experience (UX) a core part of their strategy, brand, and success.
??Keep reading to learn more about the power of product design in digital banking, how generative AI changes digital banking and much more.
? Design for scalability
As user demand grows, banks need platforms that expand seamlessly without compromising user experience. Scalable design ensures that new features integrate smoothly and maintain performance across devices. Example: APIs allow embedded finance, so apps like ride-sharing or e-commerce can include banking services directly.
? Make financial data easy to understand
Customers need to understand their expenses. Banks should use smart dashboards with simple graphics to turn data into useful information. Applying real-time updates for better oversight or customizable views for individual needs is essential.?
? Boost efficiency with automation
Automation is all around and banking is no exception. Banks can use it to cut down on manual tasks like compliance checks, fraud detection, and transaction processing. It′s faster, more reliable, and saves time.?
? Build trust and security
There are a few ways to boost trust in your customers. Focus on biometric login, fraud alerts, and encryption to keep data safe. Remember, users hate surprises, especially when it comes to banking fees. Describe and display any new fees or changes clearly in the app.
??? Technologies You Can’t Miss
Are you building a new product, or trying to improve an existing one, but not sure if you’re doing it right?
The process of product discovery is challenging and there is no guarantee of success.?
That’s where Spark by Vacuumlabs comes in.
Spark by Vacuumlabs can support you in building a solid foundation for your digital products. Our product discovery experts will help you get from idea to launch.
??? 2024 Online Banking Penetration in Europe
Digital banking adoption has skyrocketed across Europe in 2024, with the Nordic countries leading the way in this transformation.
Several digital banks have seen incredible growth, with Revolut reaching 50 million users in November 2024. This growth is driven by strong technology infrastructure and an increasing preference for convenience and online services.
?? Check the 2024 Europe online banking penetration by country here.
?? How Will Generative AI Change Digital Banking?
In 2025, investments in generative AI are expected to hit $1.68 billion globally.?Here are some ways in which generative AI will redefine customer experiences and banking operations.?
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New savings concepts like SNPL are innovating the opportunity for people around to save and plan. The success of Klarna’s SNPL might inspire similar options in Western countries.
Generative AI reviews large amounts of market data, indicators, and trends to carry out accurate risk assessments. By identifying potential pitfalls and opportunities in advance, banks can reduce risks and improve strategies more quickly.?
Chatbots and virtual assistants can process various customer queries, offering immediate and personalized responses. To thrive, banks must create an AI assistant offering financial tips, investment advice or personal help with account balances and transaction histories.
Generative AI will alter banking with sharper tools, fresh saving ideas, and fast answers. Is your bank ready?
?? Learn more about the power of AI in Banking with our latest article.?
While AI opens new doors, there’s a growing need to balance automation with the human touch in customer service.
In our latest article, we explore how modern customer service technology bridges the gap between AI-driven efficiency and human empathy. Discover how to make your support faster, smarter, and more scalable.
? Join us on March 27 for the webinar ‘AI in Banking: Your Best Mistake Waiting to Happen’, where we’ll analyze AI’s impact on banking products, customer interactions, and future-proof strategies.
?? Top 5 AI Stories of 2024?
FinTech Futures took a deep dive into the top five AI stories that shaped 2024. Discover key partnerships, innovative deployments, and billion-dollar acquisitions.
The investment firm teamed up with Microsoft to develop an “advanced financial AI platform,” leveraging Azure AI and GPT-4 to enhance tools for employees and clients.
BNP Paribas adopted Mistral AI’s large language models (LLMs) to enhance customer support, sales, and IT processes.
BBVA deployed 3,000 ChatGPT Enterprise licenses to boost productivity, efficiency, and innovation across its workforce.
Mastercard integrated the AI-powered threat intelligence platform into its cybersecurity and fraud prevention services.
BNY Mellon deployed Nvidia’s DGX SuperPOD to build AI-enabled solutions like predictive analytics, payment automation, and trade forecasting, transforming its operational efficiency.
Finovate Europe: Over 1.000 decision-makers, 1000s of meetings, 100+ speakers, and we simply can’t miss it. Meet our colleague, Marcus Davey, at Europe’s leading fintech conference. (London, February 25-26) ?
Join senior executives to explore lending innovations—from empowering SMEs and driving growth to the transformative impact of AI and embedded lending. Nigel Sirett and Marcus Davey from our team will be there to connect. (London, March 19)
See you inside!