How customers engage and interact with their banks in today’s financial industry is rapidly evolving. Consequently, customer expectations of efficiency, personalisation and seamless digital processes are transforming.
The broader discussions surrounding economic uncertainties and new technologies within an increasingly competitive market mean that financial companies truly recognise the user experience (UX) and harness it to its fullest potential to deliver customer trust. UX research is vital for this and to ensure businesses meet the various challenges facing the financial industry.
Industry experts highlight challenges such as managing complex financial regulations while continuing to deliver user-friendly solutions, maintaining a safe environment for user data and creating effective financial apps for everyone are just a few examples. Discovery platform Maze recently released a report on the future of finance and driving digital innovation via customer insights.
The report highlighted how customers demand more from digital experiences and move towards providers if unmet needs aren’t met. Research from Salesforce suggests 25% of banking customers, 35% of insurance and 34% of wealth management customers moved financial providers in the last year. Across all three fields, the digital experience represented the main reason for the change.
Customers demand more personalisation and customised solutions, with over 60% stating they will leave a brand if it fails to meet these expectations. Delivering higher user satisfaction and retention, financial companies must recognise these challenges, and this is why UX research is so vital; to provide insights into customer needs and convert any issues into opportunities.
According to a study by McKinsey, nearly 200 digital banks have launched since 2015. From 2022, there were over 270 fintech businesses with a valuation exceeding $1 billion., increasing from only 25 in 2017. This indicates a significantly competitive industry, with many financial companies competing to attract and retain customers.
Furthermore, the rise of AI is transforming the ability of tech companies to build new products and solutions. Jonathan Widawski, the CEO of Maze, explains the capability of a business to generate products isn’t the main factor. What matters more is the ability to be agile and adapt to the evolving needs of the customer. Focusing on UX research through the entire life cycle is essential to change to evolving customer requirements. As technology continues to eliminate barriers, finance companies will need to determine customer demands, create personalised experiences and continue to add value within the entire customer journey.
Ongoing UX research will generate efficient decision-making and continued success. A report by Maze recently highlighted that product teams that research consistently will produce more effective decision-making, with nearly 60% of respondents saying research positively improves customer satisfaction. The 2023 Research Maturity Model Report suggests that businesses leveraging research get 2.3 times better business results, including a reduction in time-to-market, higher revenues and better brand perception. Most financial services providers are still in the early stages of integrating UX processes. Studies suggest a significant opportunity to harness the full potential of UX research.
Dylan Brits, client experience designer at Capitec Bank, explains that the role of UX is to represent the voice of the customer in the process of transformation and discovery. From a business perspective, UX research saves money and delivers better outcomes and stronger collaboration within a business. Generating a customer-focused culture is a priority for product leaders in creating innovation in finance.
The finance industry has reached a critical point where leaders must be willing to embrace digital transformation to achieve the demands of today’s tech-focused customers. Through UX research, product teams can deliver detailed insights into customer behaviours and their concerns, enabling finance businesses the opportunity to create customised digital experiences that generate the highest value.
