Alex Kreger, UX Strategist & Founder of the financial UX design agency UXDA, increases banking and fintech products’ value in 36 countries.
Many leading technology companies integrate their business and brand strategy into their digital ecosystem. The design of their digital ecosystem gives them a unique way to do this. But, in the financial world, I’ve found that services are often delivered through digital channels, and vendors tend to provide a range of standard, fragmented and/or generic solutions. Such a digital offering often lacks a connection with their business strategy, brand identity and specific customer needs.
The digital strategies of technology giants like Apple, Google and Amazon have set a precedent for user-centric, seamlessly integrated design, but many digital banking offerings lag behind. Some banks still perceive their digital initiatives as just additional costs. They seem to think, “Next week, we need to order new computers, new chairs for the conference room and a new mobile banking app so everything will be fresh in the new year.” This needs to change.
Benefits Of Strategically Integrating Design
The world of banking is no longer just about interest rates and account balances. It’s a battleground of experiences. Digital services designed without an integrated business and brand strategy are like outdated knights battling modern warriors armed with machine guns.
From the digital consumer’s point of view, a bank itself is a digital ecosystem that includes their mobile phone, tablet, desktop, ATM and other end-user solutions. Therefore, if the only thing that connects a digital offering to the financial brand is the color of the buttons, then the full implementation of the company’s value proposition is sabotaged. A digital ecosystem design that lacks distinctive elements makes the whole business indistinguishable from competitors and leads to a lack of user experience benefits. If a digital design doesn’t align with a bank’s brand identity, it can damage brand consistency and business success.
There are a few more compelling reasons to shift to an approach in which business strategy and brand are fully integrated into the digital banking ecosystem.
• Consumers’ expectations: Users, whether individuals or businesses, have grown accustomed to seamless, user-centric experiences provided by technology companies. I believe they expect the same level of convenience, personalization and clarity when interacting with their financial institutions.
• Brand differentiation: In a crowded financial marketplace, where many institutions offer similar products and services, brand differentiation is crucial. When a bank’s digital products are aligned with its brand strategy, it creates a distinct identity and fosters customer loyalty. A unique, user-friendly digital experience then becomes a competitive advantage.
• Long-term viability: In my experience, well-designed, user-centric products tend to be more efficient in terms of customer service, operational costs and scaling. This approach helps ensure long-term viability in a rapidly changing financial landscape.
• Disruption: By integrating strategy into design, banks can proactively address the potential threats posed by emerging technologies, such as generative artificial intelligence, the metaverse, central bank digital currency, etc. This adaptability enhances the bank’s resilience against unforeseen disruptions.
• Experience consistency: Integrated design allows for consistency and seamless flow in the user experience across all digital touchpoints. This ensures the brand’s identity and values are effectively communicated throughout the entire digital offering.
Five Levels Of Strategy Integration
Long learning curves when onboarding, apps that don’t adhere to accessibility standards, users struggling to find crucial information or complete tasks, a fragmented user experience across touchpoints, a lack of valuable financial insights are all examples of a disjointed approach. Pain points like these frustrate users and can lead to high bounce rates and low engagement levels.
To align digital banking design with business strategy, financial companies need to ensure the following five levels of ecosystem-driven integration take place.
1. Purpose
At the top, we unravel the profound “why” of a financial company: its vision, mission, values and goals. Purpose extends beyond profits; a company’s purpose helps it serve a greater good, steer business decisions and keep broader objectives in sight.
Just as a car’s purpose isn’t merely to consume fuel but to transport people, a business should not be relegated to getting as much money as possible but rather to serve a higher calling. This authentic purpose fuels passion and drives results that transcend the bottom line.
2. Market
The next level delves into understanding your audience. Dive deep into customers’ profiles, needs and pain points. To craft a purpose-driven digital strategy, you must intimately know who your customers are and what they need. This level helps you learn how to tailor your design to meet their specific requirements.
3. Brand
Authenticity reigns supreme at this level. Define your brand identity grounded in purpose and market insights. Ensure your brand’s authenticity reflects key values and resonates with your target audience. Consistency in product design is paramount, as it conveys your brand’s essence, fosters loyalty and sets you apart from your competitors.
4. Service
The fourth level shapes a business’ ability to fulfill its purpose within the market while staying in sync with its brand. For a bank, this translates into offering essential services like fund transfers, deposit accounts, insurance products and other financial instruments that empower financial management and budgeting.
5. Ecosystem
All five levels inform the digital design that consists of internal and external solutions and elements connected to a united ecosystem vital for delivering services to customers. It is the frontline of business operations, which includes core, mobile, online and any other possible digital banking feature. A modern, cohesive and user-centric digital ecosystem is the only way to secure and retain customers and gain a competitive edge in the financial industry today.
In today’s digital age, design is far more than just aesthetics; it is a strategic tool that shapes user experiences, fosters customer loyalty and drives revenue growth. A strategic approach to ecosystem-driven digital banking design is essential for user satisfaction and gaining a competitive advantage. However, it is often lacking due to organizational silos, a short-term focus, legacy systems, a lack of user research and resistance to change. To succeed in the digital age, financial institutions must overcome these barriers and prioritize a user-centric, strategic design approach to connect digital ecosystems instead of separated, fragmented offerings.
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