Customer experience (CX) is how a business engages with its customer at every point of time. It has become crucial for businesses across all industries, including digital banking.Whereas, banking and financial institutions are undergoing a significant transformation  in their approach to customer experience design (CX), as more consumers turn to digital channels for their banking needs.

In this article,We’ll Explore how UI/UX is revolutionizing CX design in banking and financial institutions and provide practical tips on staying ahead of the competition.

Understanding the Importance of UI/UX in Banking:

A Good UX interface in banking comprises design processes that are in- built, efficient, and user-friendly. It considers factors such as ease of navigation, clarity of information, speed of transactions, and overall satisfaction with the banking experience.A UX designer must be able to place themselves in the users’ shoes and feel how the product or service is while using it.

Transforming Financial Services through Streamlined UX:

• Improved Onboarding Process: 

Let’s see how Onboarding process is being Simplified from Then to Now for customers ease:

In the traditional banking process, onboarding often felt like navigating a maze. UX design is flipping the script, introducing streamlined processes that redefine the first interaction users have with financial platforms.

In the past, traditional onboarding with Indian banking institutions often meant enduring multiple visits to a physical branch. Customers were required to complete extensive paper forms, furnish numerous physical documents for identity verification, and navigate through a bureaucratic process.

In the contemporary era of digital banking apps in India, the onboarding experience has undergone a remarkable transformation, where we should be thankful to UX design. 

Latest Onboarding Example:

Just Imagine- in your busy schedule, where Kotak 11 or Paytm offer  an onboarding process like doing it so effortlessly with just a few taps on your smartphone by downloading the app, initiating onboarding, and completing the entire KYC (Know Your Customer) verification process online. This streamlined approach makes onboarding accessible to users with varying levels of digital fluency. 

This consistent integration of UX design in these apps shows its positive impact on transforming the onboarding experience for customers in the banking sector.

The same happens with loan applications, and other onboarding processes, reducing friction and enhancing the customer journey for a simplified and allure Intuitive UI/UX design process.

A good UI/UX design makes it easier for users to onboard and encourages them to remain with you for as long as needed.

• Reinforcing Security in Financial CX without Sacrificing UX/UI:

Security is said to be a bedrock when it comes to any application, as users are concerned about the data. security is a term upon which trust is built in financial services.UX design should serve the importance of security through transparent interfaces, reassuring messages. The Visual cues in an application should ensure users trust to give confidence on the platform.

For Instance: The implementation of  Authentication in Two factor and Multi factor can boost the confidence of security in users.

2FA is something that enhances security like 

1. Receiving Text messages when logged in or transaction is done. 
2. Sending single use code to access the application from your account.
3. Including Biometric features for enhanced security
4. Sending Notifications for new device log in.

So, there’s no doubt that 2FA definitely adds more security and privacy to your accounts.

Multi Factor Authentication (MFA) is an enhanced complex security authentication process where  it strengthens the security by 

1. Reducing the risk of identity theft.
2. Single Sign -on(SSO) into application.
3. Customizing security solutions like 2FA and MFA according to smartphones.

Integration of security features into design gives a trustworthy experience for customers. Commonly, Two factor authentication and MFA are interchangeable.

• Intuitive Navigation: 

In Simple words, intuitive navigation is a key component of a successful website or application. By guiding users from initial process to throughout for what they are looking for, a well designed navigation can improve user experience. It also increases engagement of users in applications to build trust.

Here are few tips to build an Intuitive Navigation app:

1. Understanding the user’s and their needs.
2. Keeping the navigation simple and user friendly.
3. Providing Visible and Accessible Navigation elements
4. Giving clear and consistent labels
5. Having User centric Designs
6. Sending regular updates 
7. Tracking proper maintenance periodically.

Reinforcing the good practices of navigation in applications attract users.

Utilizing Customer Experience Design to Build Future Financial Experiences:

                                                 Experience Gap

              Digital Service         Customer Expectation

                                                      1. Value gap

                                                      2. Gap of Overpromise

                                                      3. Feedback Gap

                                                      4. Emotional Gap

To remedy this, financial organizations need to work on the above factors for improvement.

By Integrating AI and Chatbots to embrace customer service on providing real time assistance, answering queries and guiding users through various banking processes. Visually Consistent design across banking platforms is no longer a luxury but necessity. So this is how the future can shape financial and banking Experience to win users’ hearts.  

The picture below shows a great example of transforming customer experience Then and Noww:

The Wrap:

UX design acts as a driving force for the transformation journey in banking and finance CX. From streamlined onboarding to personalized journeys, UX has elevated the overall experience, ensuring seamless, intuitive, and secure interactions. With the continuous evolution of CX in banking, UX design remains the key factor for propelling financial services into the future.

The journey seems like it has just begun, after AI’s and the future holds exciting alternatives as UX continues to redefine how we experience financial services.

                              IT’s Time to Win Users’ Hearts!!

FAQs about Banking and financial institutions’ CX:

1. Why do banks need a customer experience based process design?

By putting the needs and preferences of customers at the center of the design process, banks can create products and services that are more user-friendly and effective.

2. How the role of changing technologies impacts the banking system?

Digital banking leverages technology, utilizing smartphones and the internet to facilitate convenient financial transactions through mobile apps and online platforms.

3. What are the main trends in digital banking CX?

UXDA experts highlight digital banking customer experience trends including expanding digital perspectives, empowering inner cultures, overcoming experience gaps, enriching finance experiences with emotional connections, setting experience-driven KPIs and establishing consistency.