By Anatoliy Shevchenko, Ciklum
The success of any mobile application will always lie with the satisfaction of the end user. Surprisingly, many apps have launched and failed because they could not create a product that catered to their customer’s needs. As we usher in a new decade, millennials lead the way in mobile adoption, as institutions are having to rethink their approach and cater not only to a generation who values tradition over humanization, but also a demographic who favors connection, convenience, and rewards.
If we remove the technological component for a minute, the comfortability and understanding around finances for many can become an unengaging and confusing place to be as customers struggle to understand financial complexities and decipher technical jargon.
The ability to empathize with a user’s problem area and build solutions to make their lives easier are becoming critical. With many fintech companies creating solutions to combat these roadblocks, here are a few trends and insights emerging in the fintech space to help fintech companies attract and retain mobile users.
Digital Only Banking
Consumer demand for online banking is on the rise. While certain segments of the population still embark on an errand run to traditional brick and mortar locations, mobile transfers, online deposits, and e-bill payments have left the industry in the center of massive digital disruption. Increased demand for these services has paved the way for technologies like Artificial Intelligence (AI) to root itself in the center of these transformations. App mobility allows financial institutions to streamline operations, cut costs, boost productivity and most importantly, bridge the gap between businesses and their customer base. With financial companies under the most scrutiny as it relates to information security, regulation compliance and maintaining trust with their customers, the acceptance expands far beyond the consumer market and further into the enterprise.
The risk will undoubtedly grow; however, organizations must be able to mitigate risks and manage these challenges to discover the transformational advantages of mobile apps.
Blockchain Establishes Trust
As blockchain technology continues to grow in dominance and popularity, it’s also changing the fintech industry. No longer associated only with cryptocurrency, recent reports reveal blockchain is expected to grow 75 percent by 2022, with the finance industry leading the pack when it comes to adoption.
Blockchain’s secure and dynamic infrastructure allows mobile apps to trust it.
In terms of development, blockchain technology-based solutions in some instances can be less expensive and produce safe and secure solutions at a high level. This, in turn, helps companies build trust and establish long-lasting relationships with their customer base.
UX Steals the Show
When developing applications in the fintech space, a great user experience (UX)is crucial as it coincides with building trust with the user by assuring the app is easy to use and navigate. The other factor here is trust. To meet financial regulations, fintech apps must ask users for personal information to fulfill their functions. while safely and properly handling users’ money. Added layers of security i.e., additional logins, push notifications and added verifications are needed, which at times can feel burdensome to the user. UX plays a key role in providing a balance between simplicity and safety. A fintech app is most successful when UX and extra features are convenient and puts the user at ease.
Gamification Increases Engagement
Financial companies often face challenges when it comes to engaging and educating new and existing customers. With the industry often being viewed as complex and jargon-heavy, many companies are finding new ways to tackle these issues, and gamification may be the key. With the ability to provide users with intrinsic and extrinsic rewards, fintech apps become cost-effective for the company and the customer.
Creating Added Value
As apps continue to provide feature-rich options (i.e. advanced analytics, app integration, increased personalization, etc.), basic functions that address a consumer's primary needs have remained the same. Aside from spending, borrowing, and saving, end users look for the ability to streamline tedious processes.
Digital bank Simple, for example, offers a free checking account with mobile budgeting tools. While users cannot deposit cash directly, the app keeps a running tally of how much money is "safe to spend" after accounting for scheduled bills, savings, and transfers, and it lets users save up for monthly bills and other expenses with each paycheck. Features such as this are additions, rather than entirely new innovations. Developers must remain curious and open to improving app functionality within the fintech app space.
As instrumental change continues to drive the financial industry forward, fintech apps offer the possibility of a more inclusive future allowing people to save and spend money across developing and developed countries. By decreasing transaction mobile apps have brought financial services to those without access to banks cultivating an ecosystem in which banks and fintech companies can work collaboratively to share resources, making it easier to keep up with our everchanging world.
About The Author
Anatoliy Shevchenko is UX Design Lead at Ciklum.