How fintechs forced banks to rethink their user experience

There is a lot said about the importance of placing the customer at the center of corporate strategy. Having a UX strategy helps you to have the customer at the center of decision making.

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It’s no secret that charming marketing grabs customers’ attention faster and for longer than traditional marketing means. The same is true for all institutions. In today’s age, where customers have easy access to research and reviews at the touch of a button, companies need to show their audience that they are genuinely there for them.

It might seem romantic, but providing delightful experiences for your clientele, combining emotions and finance, can outpace other more traditional companies in the financial market. Fintechs have demonstrated how to take advantage of this phenomenon.

Your client is your strongest asset, and we’ve written this article to show you why. 

Fintechs and the new game

Over the past 15 years, we have been hit by intense and rapid technological changes that have transformed everyday life. The same goes for banks. The industry has accelerated sharply in a short period of time.

Artificial intelligence, virtual currencies, Data Science, UX, UI, and open innovation have reshaped the financial services market. And we weren’t even thinking about the pandemic or social isolation yet. 

Covid-19 pandemic as an accelerator of change

The pandemic has changed all the rules of all games. It was a catalyst for rapid change. Not just social isolation or the migration to remote work. Everything has changed. 

• Physical has become mostly digital, and there is a need to find a middle ground, which we like to call the phygital experience.
• Business 4.0 has arrived, and Touchless technology is here to stay
• Conference rooms have gone digital, and many meetings have become emails
• Education has leaned on and improved Distance Learning

These factors have not only changed business relations and customer demand; they have intrinsically altered customers themselves. Humans are creatures of habit, and like it or not, a lot of the technological and societal norms that the pandemic forced on us will become a habit. Working from home will be normalized; distance learning will become an attractive alternative to regular education. 

This new customer will want to be able to conduct all their business by phone. Even if some want to go to a physical place and meet an employee to sort out their issues, this will not be as it used to be. Companies need to invest in UX and UI to give users the full experience possible through a phone app.

Fintechs were way ahead of the game in this aspect, and the idea that a digital bank isn’t as safe or reliable as a non-digital competitor is very quickly being swept away. This has been done by the torrent of incredibly easy, intuitive, and helpful user-oriented apps, procedures, and products offered by these younger generations of banks.

The new consumer 

Consumers have changed. And they keep changing every day. They have become (and continue to be) even more demanding and interactive. 

A new demographic of customers entered the game. The elderly, non-bankers, people who did not use applications for transactions… they were all dragged into the digital environment due to necessity.

Companies must restructure themselves with new digital service models that are aligned with their values, services, and products. Fintechs have blazed a path of no return.

It’s time to take a look at investing in digital. Many CFOs already knew that this trend was critical to maintaining their company’s positioning in the future. 

A new way of doing business!

Fintechs use user-centric business models and frameworks like Lean and Agile. They also eliminated waste and bureaucracy, and their way of working provides cost reduction and greater democratization of access to financial services.

We face a new paradigm: companies have come to see their customers as the most valuable asset. They begin to treat them as individuals and not just sources of income.

• It is important to emphasize that all digital business transformations must begin and end with improving the user experience for all involved: stakeholders, employees, customers, partners, and communities. 

The turning point: what to prioritize 

• Analysis of user behavior

It seems like something new, but it’s not. The truth is that changing to digital has already knocked on many corporations’ doors, including in the financial market. 

And that is why these changes and transitions in user consumption behavior must always be on the radar, mainly because competitors’ information is more accessible than ever, literally in the palm of your hand.

• Data Science

Technology changes frequently. People, however, have a much slower pace of change. How do these new business models work for crowds?

Strategy! They do not appear by chance, and data is the key to anticipating trends and consumer behavior. 

Company transformation is directly linked to data usage. Analytical corporations are not the ones that have the most data or the best tools. They are the ones that do the most advanced analysis and understand what data they need to collect to have the right answers. 

Accommodating to the data-driven mindset starts with data. And this goes well beyond a simple metric. It permeates the framework of knowledge built into all decision-making, without exception. 

• Data Visualization

With the customer at the center of all initiatives, data collection and analysis become strong allies for innovation. This data originates from many sources and has very different formats.

In conjunction with Artificial Intelligence techniques, massive data collection allows large corporations to understand their customers’ needs better. With that, they have the necessary background to offer innovative services and experiences that make a difference. 

• Tip: dashboards are the foundation of this mindset. Create reports that are updated and monitored, if possible, in real-time. Everything becomes clearer: what is working, what isn’t, where time and resources are wasted.
• UX Design and UX Strategy

The competition for consumer attention has just begun. Organizations have already realized that they need to start now to get their share of the market. In this context, UX Designers are highly required.

Another factor that drives UX Design is that the consumer no longer evaluates a company’s performance compared to direct competitors. The same dynamic experience that he has with a streaming service is required from a banking institution. 

The solution is always to understand your user deeply. And that is the maxim of UX. 

• Software development

The idea that programming is done for machines is over.. That is precisely why we must count on the support of UX Developers.

Professionals help create a clean schedule, ideal for SEO (Search Engine Optimization) and generate impacts on the user’s own experience.

• Marketing and Communication

If you are not relevant, you will be ignored. Therefore, knowing the consumer’s pains, needs, and desires is the shortest path to staying relevant.

Communication is a great asset to help turn the tide.

With uncomplicated communication, less bureaucracy, intuitive services, and lower fees, financial startups show empathy and hook their consumers. The relationship must be reciprocal. The good relationships between Fintechs and consumers have added even more fuel to the fire and raise traditional companies’ level of concern.

Remember: in a digital and user-centered world, content is king, and its goal is to engage and communicate. 

For this, it is necessary to restructure communication and processes. Put the user at the center of actions to create better experiences. There is no more room for contradictions or doubts about transparency. The convergence between discourse and actions must be fair.

How to deal with this “techization” phenomenon? 

It’s simple: Get ready to implement this new way of doing business!

• Partner with startups
• Seek specialized help
• Invest in your customers’ experience

Otherwise, techs have a good chance of getting your market. Observe the most innovative startups on the market, understand them, and prepare your company for these new business models. 

There is no doubt that Fintechs are an excellent reason to transform your business model before it’s too late. 

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