The key to a great user experience (UX) is simplicity. It all comes down to designing procedures that are simple to start and where the user knows exactly what has to be done at every turn. The ease of doing business and meeting evolving customer demands drives UX, not technology.
The user experience was not originally prioritized by the banking sector. Banking procedures were traditionally dictated by organizational logic, and clients were expected to adapt to the bank’s workflows. This frequently entailed difficult paperwork, protracted lines, and odd hours.
Consumers of today are unwilling to put up with those terms any longer, and banks are forced to adapt to the changing market or risk losing business to creative new competitors. Consumers now anticipate from their bank the same level of ease of use to which they have grown accustomed in other spheres of their lives. That entails more than just having a user-friendly banking app and website; it also entails customization, making transactions simple, and prioritizing the needs of the consumer.
1. Replacing PDF forms with digital processes
The growing importance of digital processes is one of the key UX trends in banking for 2024. Consumers prefer to be able to complete all of their transactions online and don’t want to visit a store or contact customer service unless it is absolutely required.
However, “going digital” alone is no longer sufficient. Customers will quickly become frustrated and look for another bank that can meet their needs if the process is not clear and simple to use.
Banks should concentrate on developing procedures that are clear-cut, rational, and require the fewest steps possible in order to produce an excellent digital experience. It should be so simple that the customer doesn’t even need to consider what needs to be done; the solution should be obvious.
For instance, while PDF forms are still frequently used in banking to obtain eSignatures and customer data, they negatively impact the user experience. This is due to the fact that PDF format isn’t interactive; regardless of user needs, everyone sees the same form. The user experiences a lot of “clutter” as a result. Users frequently don’t know what to do or how to proceed after seeing fields that are irrelevant to them. Furthermore not mobile-friendly are PDFs.
Conversely, digital processes allow for customization to the user’s unique requirements, displaying fields that are required and concealing those that are not. By using validations and conditional logic, they can display fields based on users’ responses to earlier inquiries. These procedures also adapt to mobile devices.
However, digital forms that are easy to use are just the beginning. Let’s examine a few more banking user experience trends that we should watch out for this year.
Using artificial intelligence for better UX
Artificial intelligence is rapidly emerging as a crucial instrument utilized by banks to enhance their customer experience. AI can assist banks in automating tedious processes, such as fraud detection or customer service, freeing up staff to improve the customer experience. AI can also be used to provide customers with individualized experiences, such as suggesting goods or services that they might find interesting. The opportunities are endless, and in the upcoming year, we should anticipate seeing more banks use AI to improve their customer experience.
2. Using virtual assistants and chatbots to expand your workforce
Due to the tight labor market, banks are finding it challenging to hire enough customer service representatives to handle all of their needs in real time. Yet, people aren’t prepared to wait for service in the increasingly digital world. As a result, we should anticipate banks to provide substitutes for human agents in the form of AI-powered chatbots and virtual assistants that can help clients with transactions and offer a respectable level of support for basic tasks.
Rule-based computer programs that are always available are called chatbots. In straightforward interactions where a customer wants to finish a specific task, the automated workflows can meet their needs even though they are aware they aren’t speaking with a human. They can guide clients through procedures, respond to inquiries from them, and even use decision trees to solve issues. To determine the appropriate flow and respond to consumers’ inquiries about any action they are interested in taking, they rely on machine learning.
Virtual assistants, such as the well-known Alexa and Siri, assist users with daily tasks and use artificial emotional intelligence to lighten up conversations. Virtual assistants are often activated and respond vocally, whereas chatbots are text-based. They search through available resources, including chatbots, to find the answers users are looking for; they don’t hold the answers or carry out tasks on their own.
But execution is crucial. Nothing is more annoying than when a chatbot gets stuck, doesn’t comprehend what a customer is saying, or gives false information. Because of this, it’s critical to have a strategy and build chatbots with thoughtful dialogue trees that take into account all potential customer interactions and make it easy for users to get in touch with real people when necessary.
Both chatbots and personal assistants, while far from ideal, can enhance the banking user experience. Virtual assistants can help users access all kinds of information and personalize and make the banking process more pleasant. Chatbots are a quick way to answer frequently asked questions. In 2024, we can anticipate both being utilized more regularly in banking and opening up self-service options that were previously unattainable.
3. AI to power tailored suggestions and guidance on financial planning
We should anticipate seeing more banks offer self-service options that were previously unattainable as mobile banking gains popularity. The growing application of AI and machine learning, which enables banks to provide their clients with more individualized and customized services, is what’s driving this trend.
The banking sector is extensive and provides a broad range of services, from basic withdrawals and deposits to sophisticated investment platforms. It can be a mistake for banks to highlight the range of services they offer. When there are too many options available, especially when many of them don’t relate to their needs or interests, customers become confused. Financial advisors should identify the best options for each client, but most banks lack the manpower to do so efficiently and on a large enough scale.
Self-service choices used to frequently be restricted to checking account balances and transactions. However, more sophisticated services like financial planning and advice are now being offered using AI and machine learning. Deep learning in AI has a great deal of analytical and predictive power that can help present customers with the right opportunities at the right moment. This allows human advisors to concentrate on client-facing activities and specialized interpretive roles by relieving them of many of their repetitive monitoring tasks. As AI learns to recognize more patterns, it also gets better with time.
The use of artificial intelligence in “robo-advisors,” or automated trading models, is also growing. The global robo-advisory market is anticipated to maintain its notable growth trajectory through 2024. The market is expected to grow from its estimated USD 8.74 billion in 2023 to USD 34.72 billion in 2028. During the forecast period, this growth translates into a compound annual growth rate (CAGR) of 31.78%. Robo-advisory services—automated, algorithm-driven financial planning with little to no human oversight—are being used more and more in a variety of industries, such as asset management and retail banking.
The opportunities are endless, and in the upcoming year, we should anticipate seeing more banks use AI to improve their customer experience.
4. Mobile banking will continue to grow and expand
Our lives are now centered around our smartphones. It makes sense that as we use our phones more and more for financial transactions, there is a noticeable shift toward mobile banking, primarily due to features like in-app purchases and person-to-person transfers. As of 2019, 35% of American households were using mobile banking as their main method of access, and that percentage is still rising.
In the developing world, where access to banking services is frequently restricted, mobile banking is also expanding. For instance, in Africa, those without access to traditional banking infrastructure are using mobile money services to get banking services. With the help of these services, consumers can keep money on their phones and use it to send money to others or make purchases. As mobile money services proliferate and are incorporated into the main stream of the financial system, this trend is probably going to continue.
Although we should anticipate continued growth in the popularity of mobile banking, it’s crucial to remember that not all features are equally well-liked by consumers. According to a 2019 study, people mostly use their phones to pay bills, transfer money, and check account balances and transactions. In fact, the most popular mobile banking features were quite basic. This implies that the features that mobile banking apps offer still have room to grow. We may anticipate seeing cutting-edge features and capabilities added to phones as more people use them as their main banking interface in order to satisfy changing consumer demands.
According to recent research, if a smartphone user cannot find what they are looking for in three seconds, 29% of them will move to another app or website. UX designers need to be conscious of this and adjust their designs accordingly. According to a different study, 61% of users said they would never visit a website again if it was too slow or difficult to use on a mobile device. Developing a responsive design is essential to providing users with the best possible experience on any device.
5. The rise of biometrics in mobile banking
The growing use of biometrics for authentication in banking is one of the most significant trends. Many banks and financial institutions are already using this technology, which identifies people based on their physical or behavioral traits. It is thought to be a more secure option than traditional passwords.
Customers should find mobile payments to be so convenient as a result of this trend that they will no longer want to use other payment methods.
In 2024, biometrics should be used in banking more often as banks strive to enhance customer convenience and the mobile banking experience. We anticipate the use of facial recognition and fingerprint scanning in particular for authentication needs. Compared to more conventional security measures like passwords, these technologies offer a high level of security at a much lower cost of use.
6. Expanding offerings to include cryptocurrency wallets and investment products
Although banks have been reluctant to venture into the volatile world of cryptocurrencies, they are starting to take a closer look as blockchain finance gains traction. It is impossible to ignore the consumer demand for cryptocurrencies, which is why so many banks are providing services to their clients that allow them to store the private keys for cryptocurrency transactions in crypto wallets. Packages for cryptocurrency investing and bitcoin custody are provided by other banks.
The use of bitcoin credit cards to make purchases is also growing in popularity. Customers can use these cards to make purchases using the cryptocurrency they own because they are connected to bitcoin wallets.
To stay competitive, banks are offering customers more investment products such as Exchange Traded Funds (ETFs) and other curated portfolios than other third-party providers. Given how unstable the global economy is still, this trend appears to be picking up steam and is probably going to continue strong throughout the year.
7. Boosting UX with no-code development
Banks are realizing that providing great customer service is essential to staying competitive and that it’s not about them. This includes a focus on AI, mobile banking, and new goods and services in 2024. However, the importance of no-code in banking is a trend that is sometimes disregarded. Without knowing a single line of code, anyone can create custom apps using no-code platforms. This implies that banks won’t need to hire costly and infrequent developers in order to swiftly develop and implement new features and integrations.
It’s critical to keep up with the quickly changing field of user experience trends in banking. The industry’s dedication to raising customer satisfaction and engagement is demonstrated by the top 5 trends for 2024, which include seamless omnichannel experiences and AI personalization. Accepting these innovations will surely be crucial in determining how digital banking develops in the future.
Fintech is always changing, and making an app like an e-wallet requires a lot of careful planning and the newest technology. Using Appic Softwares as a guide gives you a strategy plan to get through the tough parts, which encourages innovation and makes it possible to create groundbreaking fintech apps in 2024 and beyond.
So, What Are You Waiting For?