Ciklum Editorial Team
Key Takeaways:
- User experience is increasingly important
- Simplicity, speed and security are core elements
- Consumers want more app personalization and autonomy
- New innovations are key for competitive advantage
User Experience Matters: 7 UX Principles for Modern Mobile Banking Apps
User experience has never been more important in mobile banking. Now more than ever, users expect to use applications that are fast, intuitive, and highly capable of dealing with even complex tasks like loan and mortgage applications.
According to YouGov, 30% of American consumers now have accounts with digital-only banks. This means that building customer trust and loyalty is crucial, as it’s easier for them to shop around. In this blog, we’ll explore the key principles that help the best mobile banking apps deliver on customer experience expectations.
Principle 1: Simplicity and Clarity
The simpler the navigation and design of an app, the easier it is for users to find their way around it without unnecessary hassle. Uncluttered, minimalist mobile UX therefore helps users reach essential features and content they want to reach, as quickly and seamlessly as possible.
Connected to this should be a clear hierarchy for the typography and font sizes across the app as a whole, which is especially important for readability on mobile devices. A consistent grid system that makes layouts well-spaced and easy to follow should also be adopted.
Principle 2: Security and Trust
Our recent blog on anti-fraud measures in FinTech underlines why banking security is so important. Multi-factor authentication, biometric technologies and secure encryption methods are all becoming the base standards to keep sensitive data safe, and maintain trust of increasingly security-aware consumers.
But technology should come hand-in-hand with security education, as so many breaches are often down to simple human error. Good mobile banking apps will focus on further enhancing user knowledge around potential dangers, such as phishing scams and using public Wi-Fi. This is not only for their safety, but also supports organizational compliance.
Principle 3: Personalization and Customization
Mobile banking apps offer huge opportunities to provide personalized services to individual users, and to give them greater autonomy and control over their financial affairs. McKinsey has found that 71% of consumers now expect companies to deliver personalized interactions.
For example, personalized dashboards and customizable widgets can connect customers to tailored financial insights. These can include quick links to the services customers need to access the most, such as making payments, accessing statements, and checking their credit scores.
Other personalized management tools that can be provided include automated analysis of spending habits, budgeting guidance and templates, and savings and debt management.
Principle 4: Accessibility and Inclusivity
All mobile banking app designs should accommodate the widest possible range of users, and that means meeting accessibility standards across color, text size and screen reader support. Not only will this help meet legal accessibility requirements, but it will also stand an app out in the marketplace: with only 35% of paid iOS apps and 29% of paid Android apps passing accessibility testing.
Further practices that can promote accessibility and inclusivity include (and are by no means limited to): simple language, gender-neutral design, voice control, text-to-speech and color customization.
Principle 5: Performance and Speed
Consumers today expect banking apps that deliver an exceptionally smooth and responsive experience, so your app needs to stand out by prioritizing speed, optimization, and seamless functionality. This means apps should load quickly (ideally no more than three seconds) and should have super-fast transitions, so that users don’t start looking for alternative apps and banking providers in frustration.
Core actions should be a priority when assessing the speed and performance of a new app, especially balance checks, transfers of funds, and receiving important information and notifications.
Principle 6: Consistency and Seamless Multi-Device Experience
When consumers get a consistent experience across all areas of an app, on whichever devices they use to access, they feel more confidence and trust in the app - and by extension, the banking provider.
Uniform design language across mobile, tablets and desktop alike help to build that trust, as users become more conversant with the app and can navigate different functions faster.
A key enabler of this seamless consistency is to ensure that user data and preferences are always synchronized across all platforms. That way, users can easily move from one device to another, without concerns around re-inputting data or struggling to find the information they need.
Principle 7: Engagement through Feedback and Guidance
Gaining detailed feedback from users - positive and negative - is the best way to inform decision-making around app development and improvement. From a UX perspective, getting customer views around product design, and whether they need more guidance with complex financial tasks can be instrumental to streamlining and improving their overall experience.
This feedback can be integrated with educational content that can enhance engagement and empower customer autonomy over their finances. Mini-lessons within the app can encourage customers to ask questions and share experiences in the community, and contribute to better financial education all round.
In Summary: Innovative Features Shaping Modern Banking Apps
The world of technology never stands still, and new innovations are coming on stream all the time to further the capabilities of modern, successful banking apps. The months and years ahead will be shaped by:
- AI-Powered Virtual Assistants: Advanced chatbots within apps are able to add layers of intuition and personalization into user experiences, helping them manage activities from basic queries to analyzing spending patterns.
- Augmented Reality (AR) for ATM Locations: The integration of AR technology into banking apps can provide customers with enhanced navigation and visualization of ATM locations, making it easier to find the nearest or most convenient ATM.
- Voice Commands: According to eMarketer, over 60% of Gen Z will use voice assistants on their devices monthly by 2027, meaning voice commands will become an increasingly expected function within banking app UX.
- Gamification for Financial Wellness: Using gamified elements such as progress tracking, challenges and reward badges can encourage engagement with financial wellbeing initiatives. This fosters improved education among customers, which in turn improves their finances and customer satisfaction.
All of these new innovations will mean development teams will need to keep a strong focus on user experience - and look for third-party expertise to support them if they feel it’s necessary. Talk to Ciklum today to find out how our experience in BFSI and mobile banking innovation can help you meet user needs and maintain a competitive edge.
