Bad Habits That Stifle User Experience (UX) Innovation at Banks & Credit Unions

Today, every bank and credit union is expected to offer digital services. But simply having a mobile app or online portal for customers is no longer enough. These platforms also have to deliver the services customers actually want and keep those customers/members engaged.

Call it the Netflix effect. Thanks to the video streaming platform (and other digital giants like Amazon and Apple), today’s customers expect a seamless, highly personalized User Experience (UX) on any platform, including the ones they use for banking.

A financial institution whose UX doesn’t live up to customers’ standards will find itself losing business to digital-native startups. The proof: a Salesforce study found that 57% of today’s consumers admit to moving their business to competitors that offer better experiences.

Here’s a look at why many banks and credit unions struggle with user experience, and what they can do to shore up their UX so they can hold on to and continue serving their customers.

Digital Banking Platforms Work… But Don’t Engage

Banking customers know what outcome they want and they want a relevant, personalized experience along the way. According to a study from Epsilon, 90% of consumers find personalization appealing, but only 6% of banking firms are able to deliver on their personalization promise.

The problem is that UX professionals at banks and credit unions are often constrained when it comes to implementing new ideas that would improve a user’s experience on a platform. Specifically, industry regulations and complex internal structures at banks and credit unions make it difficult for UX professionals to deliver solutions that customers actually want.

Right now, customers get banking platforms that work but don’t necessarily meet expectations around personalization and usability. The result is lower customer engagement and money lost on projects that don’t make an impact.

It follows that the key to better engagement is to allow UX professionals the opportunity, resources, and flexibility to research customers’ "pain points" and to inform on any design decisions. 

Tomorrow: 3 Persistent Challenges of UX Design in Banking