The banking sector has undergone a series of transformations over the past half-century. What used to be a solely brick-and-mortar scheme of receiving banking services has transformed into solely digital experiences. The traditional offline banks still exist and cover large populations, but the pace of technological progress is too quick and unstoppable. So, millions of people have already adopted digital-only banking options, one of which is a Neobank.
Neobanks are an innovative, high-tech banking option that appeals to young, dynamic people looking far beyond financial transactions. For this reason, Neobanks are also referred to as user experience banking services, meaning that Neobanks are highly UX-focused. Here is a brief overview of Neobanks’ approach to UX and UX lessons that other financial organizations can learn from them.
Why Focus on the UX?
Banking services have been cumbersome and inconvenient for many decades. People needed to stand in queues and fill out numerous documents by hand to open an account or receive a payment. However, millions of people agreed to these terms of service because they simply had zero alternatives. Now that digital banking is on the rise, users have received the right to choose. So, financial service providers can’t rely on the shortage of banking services anymore; they need to deliver stellar service to retain users.
UX has only recently entered the scene of web design, giving web product creators a new perspective on the drivers of success and failure. User experience quality is the key determinant of product success on the market, as people pay only for something they like and enjoy. Thus, digital product owners need to offer appealing, user-friendly interfaces to achieve user buy-in.
UX Approach of Neobanks
Digital banking apps emerged over a decade ago as an extension of brick-and-mortar banking services. However, Neobanks are a totally different banking segment. These organizations are digitally savvy and innovation-focused, striving to deliver unprecedented use experiences. Here are a couple of UX tips you can borrow from Neobanks.
#1 Simple Functionality
Striking a balance between simplicity and rich functionality is challenging for all banking apps. Neobanks have gone one step further in this aspect by conducting thorough UX research and identifying the minimal set of features their users need. That’s all! The secret recipe to UX success is to free your app from redundant features, leaving only the kernel of banking service, and spicing it up with a couple of innovative perks.
#2 Social Banking
We bet you’ve never considered combining your digital banking app with social media functionality. Neobanks have done this, and this experiment was a success. Such a combination opens numerous fascinating opportunities and gives the flexibility of payments that users need so much. For instance, a married couple can set mutual payments for Netflix subscriptions or home purchases while retaining their autonomous accounts. Another example is a bulk order by a group of friends that can give each person a sizable discount. Thus, social media-like interactions within the mobile bank’s UX are an exciting new way of building social bonds and managing finance.
#3 Endless Customization
Modern users want to be in control, and Neobank’s UX design typically makes this goal attainable. As soon as you design a Neobank, it would help if you kept those customization options in mind. Think of your target audience and their financial habits. Who will benefit from saving functionality? Are your users more interested in personal financial advice? How comfortable is your target audience about sharing their personal data and spending records? Based on that data, you can develop customized service and settings options.
#4 Focus on the Pain Points
Similar to the customization approach you choose for your Neobank, you need to determine the target users’ pain points. No need to reach out to a broad audience with a generic financial product. Your chances to succeed in the market get way higher once you formulate a narrow UVP for a specific target audience.
#5 Removing the Bottlenecks
The core focus of every Neobank’s UX design is the removal of bottlenecks. UX researchers have gone the extra mile to find out what frustrates the users of banking apps. One thing that kills usability is a lengthy, cumbersome login/signup. Thus, the basis of Neobank’s UX is a quick, hassle-free authorization. Such apps require minimal information from you at signup, asking for additional details later. As for login, biometrics or auto-fill are often used to reduce the user time and effort.
#6 Advanced Metrics and Analytics
As Neobanks are technologically innovative, they take advantage of the latest tech trends to deliver exceptional user experiences. Using a Neobank gives you access to advanced AI analytics and spending insights, giving you better control of your spending habits. Besides, UX designers ensure you have the most important financial information on display. This way, you don’t need to wander in the app, looking for your transaction history or current balance.
#7 Fast, Simple Payments
Banking apps are about payments, after all. Thus, the task of any banking service provider is to make the process of sending and receiving money simple. Neobanks have gone a long way in simplifying and automating these procedures. Thus, you may now enjoy a large set of beneficial features, such as autofill from your address book, automatic filling of minor transaction details, and truly instant transactions.
#8 Smart Billing
Bills are unavoidable. They are every person’s hassle, as they take time and effort every month. But Neobanks can help you with this problem as well. You only need to fill out the payment information and save it in your personal profile. The smart recurring billing system will cover your bills from the designated account, removing this tedious work from your daily routines.
Neobanks Can Teach You a UX Lesson
Innovation in the digital world is all about usability, and Neobanks are coping with this task in the financial sector. You can embrace the whole spectrum of handy features and user-focused functions by installing a Neobank and using it for a wide range of financial operations. Try it out, and you will see a real UX difference!
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