Fintech solutions are currently on the rise and disrupting traditional banking and financial management practices. Nowadays, the industry is aiming to create financial services such as payments, money transfers, loans, crowdfunding, asset management, cryptocurrency, and many others that can make life and money management easier.
While the demand for building a fintech is quite high, designing a fintech app is pretty challenging. It requires more than making a great interface, as it's money we’re talking about and dealing with.
In this article, we’ll explore examples of fintech, challenges that might appear when designing a fintech, as well as tips to consider when designing one so that the product we make can be user-friendly, provide maximum value to users, and be trusted as a safe app.
A fintech app is a software application that uses technology to help people manage their finances. It optimizes, automates, and enhances financial services for businesses and customers.
The use of technology in the financial sector has assisted financial institutions in resolving many common problems that users and businesses face. Access to financing is one of them, as well as assisting the unbanked and providing more people with access to investing.
Some examples of payment apps and FinTech startups include: robo-advisors and personal finance; digital banking; regtechs; payments and remittances; and cryptocurrency and blockchain.
Designing fintech products requires more than making a great interface. It’s money we’re talking about and dealing with. Therefore, there are a number of challenges that need to be addressed by designers.
The first would be to ensure that users feel safe while using and transacting on your app. They must have confidence that their personal information will not be misused or compromised.
Designers should also be aware of government regulations governing fintech. Each country's regulations may be different. In Indonesia, for example, fintech companies are regulated by two major government agencies: Otoritas Jasa Keuangan (OJK) and the Central Bank of Indonesia.
Another challenge is ensuring that the data visualization and copy are user-friendly. Financial terms are sometimes too intimidating and complex for people in general, and not always widely used in everyday conversation.
Fun fact: one study in the US discovered that the readability of most banking communication is lower than that of Herman Melville's novel Moby Dick, published in 1851. This novel is well-known for its symbolism and literary references.
Meanwhile, a financial app must be understandable to everyone — beginner or professional — in order to provide a seamless experience. To accomplish this, it is critical to develop suitable terms and user flow that will not overwhelm users.
Knowing these challenges, now you know there are some things that you should consider and pay extra attention when designing for a fintech app
Get to know the updated regulations is a must
Fintech apps must follow applicable laws and regulations. When designing, make sure to keep these regulations in mind. The thing about regulations is that they can differ from one country to another. Not only that, it could also be updated from time to time.
For instance, there are regulations related to user identification, privacy, and fraud prevention, which might impact how the onboarding and user flow are being designed.
Security is top priority
When it comes to personal finance, security is the most important factor. To provide secure transactions, fintech apps require a large amount of personal information from users. It is critical to explain to users why specific data is required and to ensure that it is secure.
Financial institutions, according to the Boston Consulting Group, are 300 times more likely than other institutions to be targeted by cybercriminals. The design you create should then encourage users to be more cautious about their privacy.
Users, for example, tend to create simple passwords that do not require much effort to memorize. However, we should not allow users to do so. When designing for fintech, you must make registration forms that do not accept simple passwords to prevent users from creating passwords that are easily cracked. Even so, there is room for a more user-friendly interface as they purposely increase friction for safety.
Consider what Mailchimp did. You could create a pleasant real-time password checker instead of forcing users to guess the password requirements by randomly throwing letters, numbers, and characters until something works.
Transform complex financial data into simple and actionable information
Some industry terms and data in fintech can be quite intimidating for many people. It's a challenge, and our job is to make it easier for users to understand. This ensures that users understand exactly what they're doing with their money and that they won't make a mistake.
When dealing with money, we must also consider formatting conventions. For example, in some countries or languages, a period is used to separate decimals. In other countries, a comma is used. Failure to account for these differences may cause users unnecessary anxiety.
Knowing that certain aspects of fintech require more attention, here are a few essential features of fintech apps:
Simple User Interface
We've discussed how finance can be perceived as complicated by many people. As a fintech service provider, one of the most important tasks is to eliminate any type of complexity associated with accessing fintech apps. A simple and intuitive interface will surely help a lot.
Cross Platform Functionality
The presence of your fintech's app on a user's smartphone should make their life easier. As a result, in order to facilitate seamless payments and other transactions, you must integrate the functionality of your app with third-party applications. This is another way to increase the demand for your app.
Secure Sign In
Security is undoubtedly the most critical feature, especially with the current rise of data breaches, cyber theft, and hackers. Multi-factor authentication with secure sign-in options and other technologies such as biometrics, fingerprint readers, face recognition, and code are one way to improve security and make users feel safer using your app.
Language is actually one barrier to people utilizing digital applications, including fintech. A bilingual or multilingual app could be advantageous to ensure that the digital ecosystem reaches everyone. Users will feel more safe and confident transacting in the language they’re familiar with.
Customer Service Options
To avoid panic, your app should make it clear how users can get help if they are stuck in the process. Some customer service options include live chat, phone, and email. The goal is to show users that even though they are interacting with technology, there are real people who can assist them if something goes wrong.
Our team at Natuno has also designed fintech apps, and one of our case studies is when we designed for Pintu, an Indonesian cryptocurrency app. Pintu approached the Natuno team for help with their early-stage product design and making the user experience more friendly, as cryptocurrency trades can be intimidating to manage.
Finally, we were able to grant their wish. The Playstore reviews say it all: Pintu is considered user friendly by many.
Having a wish to discuss more about designing a fintech app? Book a call with our design experts, and we’d love to hear your story and see if we can collaborate to make your fintech thrive.