In recent years, fintech banks or digital-only banks, have grown in popularity. Digital-only banking is a type of banking without physical branches that only provides banking services such as transactions, financial services, and customer service online or via mobile apps.
Numerous factors have contributed to the emergence of digital-only banking. Accessing online banking services has become simpler thanks to the widespread use of phones and digital technologies. The development of new technologies like artificial intelligence, machine learning, and blockchain has further accelerated the growth of digital-only banking. These innovations allow digital-only banks to provide more complex services such as predictive analytics, personalized financial advising, and fraud detection.
Research from Accenture predicts that the global market for digital-only banking will increase from $3.6 trillion in 2020 to $6.2 trillion in 2025. This represents an average annual growth rate of 10% or higher. According to a global poll conducted by the consulting firm Bain, 95% of consumers intend to adopt digital banking after the epidemic.
What makes digital-only banks so appealing?
The emergence of digital-only banking is being driven by rising demand for convenient, secure banking services, as well as the rise of mobile banking. Customers have more control over their finances with digital-only banking since they can manage their accounts and make payments instantaneously. Moreover, compared to traditional banks, digital-only banks charge lower fees, have fewer limitations, and offer more features.
Digital-only banks may also provide specialized services such as cryptocurrency trading, peer-to-peer lending, and investments. Furthermore, many digital-only banks are providing enticing incentives such as cashback and rewards packages, as well as free checking and savings accounts. Lastly, the growth of online payment systems like PayPal, Venmo, and Apple Pay has made it simpler for people to transfer and receive money without ever having to go to a bank.
This is why banks must reconsider how they interact with clients by embracing digital technologies to provide more tailored and convenient services. This could entail creating a mobile app that enables users to safely manage their digital bank accounts or giving users more specialized and individualized financial product recommendations.
Good user experience design is all about helping people achieve their goals, whether that's completing a purchase, finding the right information, or understanding a complex system. - Don Norman
How to Deliver the Best User Experience in Digital Banking?
Delivering a great user experience is essential for digital banking services to attract and retain consumers. Banks must ensure that their digital platforms are user-friendly and intuitive in order to provide a positive user experience to their users. Here are some tips for creating a positive user experience in digital banking:
Provide a seamless user experience
A consistent user experience is critical for a successful digital banking service since it helps clients easily navigate the platform.
The user interface should be straightforward and intuitive, with simple and clear directions for users to follow.
Remove any unnecessary steps or features that may lead to confusion.
After logging in, users should be able to access their accounts and make online payments quickly and effortlessly.
Customer care should be easy to reach with timely responses.
To assist users in making smart choices, the website/ app should also have useful tools like savings calculators and budgeting tools.
Ensure security
Security is critical for digital banking consumers, therefore verify that your platform is secure and that your customers' data and accounts are protected from unauthorized access.
Multi-factor authentication must be deployed to verify user identities and ensure that only authorized users are accessing the platform.
To safeguard sensitive user information, including login information, account numbers, and transactional information, banks must use encryption. This can help to prevent unauthorized access to user data.
The digital banking software must be regularly updated to address security vulnerabilities and improve the overall security of the platform.
Personalize the user experience
Delivering a top-notch user experience in digital-only banking requires personalization. Personalization helps to build a stronger connection between the user and the platform, as well as increase user engagement and satisfaction.
Utilize client data to generate tailored experiences, such as personalized offers and product recommendations.
Users can be sent personalized notifications and alerts based on their account activity.
Designing a user-centric intuitive interface will allow users to quickly access the information they require. Recruit UI UX designers who can create distinctive designs that emphasize the key features of the banking process, like account balances, recent transactions, and online payment options.
Educate users about the features of digital banking
Explainer videos are growing in popularity in digital-only banking technology as a means of communicating complicated concepts to users in a simple, engaging, and easy-to-understand manner. They may be employed to advertise new goods and services or provide more information about ones that already exist.
When making an explainer video for digital banking, keep the target demographic in mind and make sure the content is relevant and appropriate.
In order to make the video interesting and simple to comprehend, user experience (UX) design concepts must also be taken into account.
UX design principles such as storytelling and visual hierarchy should be employed to create an explainer video that is educational, engaging, and simple to understand.
Sound effects and animations can be employed to make the video more engaging and lively
Explainer videos can serve as a resource for users when they are confused or have queries. Users who utilize it may feel more knowledgeable and secure about their financial decisions, and it can also aid digital banking companies in gaining client trust.
Setup online onboarding for digital banking
The process of recruiting new clients through digital channels is known as online onboarding in the context of digital banking. This procedure entails the customer opening a bank account and finishing their onboarding process online.
Online banking is a fast-growing sector, so digital banking firms must guarantee that their consumers enjoy a smooth, simple onboarding process.
Customers should be able to easily navigate the system, obtain the information they require, and finish the onboarding process fast and without trouble thanks to a well-designed user interface.
The onboarding procedure must be a step-by-step process that is explicitly described in the user interface, as well as useful hints and tips.
Additionally, since more and more individuals are utilizing their mobiles to access online banking services, the UI UX design should be optimized for mobile devices.
Leverage chatbots for financial management
Chatbots in digital banking can assist consumers with financial advice such as accounting, retirement savings, and investing. They can be used to assist clients in making educated decisions and becoming more financially secure. The chatbot can also be used to survey customers and deliver personalized recommendations in response to their comments.
The layout of the chatbot should be simple and easy to understand. The chat interface should be visually appealing and intuitive, with clear prompts for users to follow.
The chatbot should be designed to collect feedback from users, and the UI should include prompts for users to provide feedback on their experience with the chatbot.
The tone and language of the chatbot should be consistent with the brand voice of the bank. The messaging should be clear and concise, and the chatbot should avoid using jargon or technical terms that may confuse users.
Banks can develop a successful chatbot that offers clients a fun and secure user experience by utilizing the UI UX design concepts.
Takeaway
In general, the growth of digital-only banking is being driven by the increasing need for convenient and secure banking services. The market is anticipated to grow going forward as consumers continue to recognize the benefits of digital-only banking.