Peculiarities of FinTech App Design: 7 Mistakes to Avoid

Posted on 19th October 2023

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Article written by Tatsiana Kuchminskaya, CFO at Andersen

The FinTech industry offers many possibilities for innovative financial services. However, creating a user-friendly app is an art that requires careful consideration. With the rise of digital banking and contactless payments, modern consumers expect easy-to-navigate user interfaces that make managing their money effortless. But many digital products fall short, frustrating users with clunky designs that ignore key UX principles.

Therefore, financial institutions must avoid common mistakes that prevent their clients from having convenient interaction with software products. At the same time, apps they offer must be feature-rich and secure as they store sensitive financial data and transactions. A thoughtful approach to information, architecture, navigation, visual hierarchy, and micro-interactions can make or break an app’s adoption and retention rates. By learning from past mistakes, FinTech developers can craft intuitive interfaces that turn first-time users into devoted customers.

This article explores seven mistakes app designers should avoid when creating digital solutions. Following best practices for financial UX can help startups and institutions alike flourish in the digital world. 

The critical role of user experience in FinTech

First, let’s find out why the design of financial products matters. Many people would rather ignore its importance, thinking that functionality determines convenience and efficiency. But it’s not the only success factor.

The industry is developing fast, and the need for exceptional UX is growing as well. Modern consumers demand instant, personalized and seamless financial services; that’s why software design has become a catalyst of competition. The most innovative product ideas will flounder without a well-though-out interface and clear navigation.

For FinTech startups, a user interface is often the primary touchpoint for customers. So, it must unite complex services into simple, intuitive interactions. The right UX approach makes managing finances not only more efficient but engaging. As a result, good design helps businesses retain customers used to digital convenience. 

The following approaches to design will help FinTech providers to excel:

• simplifying complex financial tasks into clear workflows;
• visualizing data insights through sleek information design;
• personalizing content with AI;
• optimizing forms and micro-interactions for mobile apps;
• adding gamification elements to drive engagement.

By focusing on user needs, top-notch designers ensure comfortable and secure experiences. This user-centric mentality is crucial as it helps attract happy customers and enhance their financial literacy. Superior UX gives companies an edge when battling for digitally savvy consumers through excellent first impressions and lasting satisfaction. 

Therefore, if you want to expand your business and grow, mind design. Nowadays, it’s mission-critical.

Seven mistakes to avoid when designing FinTech products

Now, let’s delve into details and find out what exactly you should avoid when building new FinTech apps or updating existing ones. 

Putting profit before people 

In the race to capture market share, many companies lose sight of their most important asset – their users. If teams are obsessed with growth metrics, they can push out software products without thoroughly understanding customer needs. But sacrificing user-centered design can result in a failure.

UX/UI design is an essential driver of innovation, so it shouldn’t be treated as an afterthought. Companies that neglect user research or thorough usability testing often find themselves building for imaginary personas. The end result may meet the required specification but not satisfy real users.

Prioritizing hypothetical business objectives over user goals leads to frustrating experiences riddled with friction points. When businesses ignore user feedback in favor of internal assumptions, they create solutions prone to serious problems. Features that seemed compelling from the business perspective fall flat when brought to ordinary people.

To avoid these pitfalls, FinTech product teams must embrace user-centricity as a core value. This starts with contextual inquiry – observing how customers engage with financial apps and services in their daily lives. Professionals working on software design must embrace an empathy-driven approach and understand user behaviors and motivations.

Regular usability testing ensures products develop based on how target users think and feel. Prioritizing continuous learning about customers over rigid roadmaps or vanity metrics prevents teams from straying too far from actual user needs. 

If you want to deliver value and comfort and stay competitive, you should master user-centered design.

Complicated onboarding process

Minimal friction in onboarding is essential to build user trust and drive retention. However, many applications fail to ensure simplicity at registration. They either overwhelm users or inadequately introduce core capabilities.

Some apps blast new users with dense tutorial slides, excessive video explainers, and requests for unnecessary data fields. This information overload irritates users and can provoke abandonment. Others take an overly minimal approach. Rushing through onboarding or skipping it altogether leaves users disoriented about an app’s purpose.

Smart onboarding strikes the right balance of frictionless and informative. Keep initial data collection to vital attributes only. Use succinct texts and tooltip cues to briefly explain unique features as they appear. Personalized onboarding paths catered to user needs help companies retain more customers.

FinTech apps should also maximize the “first run” experience after signup. A guided product tour during the initial session makes purpose and value tangible through authentic examples. This hands-on exposure builds intuitiveness while setting up key workflows.

If you offer seamless onboarding, first-time users may turn into savvy customers. Companies must carefully consider this critical moment to frame their value proposition, establish trust, and set habits for retention. A tailored onboarding experience that promptly puts the app’s differentiating capabilities into customers’ hands is key to user-centric design.

Too many functions

In FinTech, minimalism matters. Unfortunately, many apps overload users with superfluous tools and complex workflows. While packed with features, these products lack focus and frustrate customers with confusing interfaces.

This “kitchen sink” approach stems from teams trying to be all things to all users. But featuritis and scope creep create cluttered experiences that feel impersonal. Companies must resist the temptation to include every possible capability into their products.

When building an MVP, try to identify the one or two high-value tasks that solve a relevant user’s need. Make core functionality perfect first before expanding into supplementary features. Thoughtfully designed micro-interactions can then gradually reveal additional capabilities.

Overstuffed design flows force users to parse dense interfaces to find what they need. Hidden gems thus get lost in the mix. These apps demand too much upfront learning before providing value. If you simplify flows around primary user goals, you will remove obstacles to adoption.

The most effective FinTech experiences start with restraint. They defer advanced functionality that can overwhelm first-time users. Progressive disclosure and personalization later expose those power features when individuals express interest. By accurately considering product development opportunities, companies create efficient solutions that feel intuitive rather than cluttered.

Lack of clear data visualization

Financial apps live by data visualization. But simply displaying metrics and graphs leaves users adrift in a sea of numbers. Effective UX goes beyond dumping data to revealing insights through clarity.

Many FinTech dashboards present every available data dimension at once. But overlapping graphs and advanced chart types like scatter plots or treemaps perplex more than enlighten. If you don’t turn raw data into key takeaways, this will force users to decipher visualizations. And this is far from being pleasant. 

FinTech design must filter and frame information around critical user goals. Less is more – therefore, eliminate non-essential metrics and reduce cognitive load. Draw attention to key trends and opportunities buried within complex systems.

Leverage best practices of data visualization like using colors intentionally. Contextualize and annotate highlighted findings, so users immediately grasp your point. Turning complex financial data into easy-to-understand insights makes users take meaningful action.

Of course, there should be a balance between simplification and flexible filtering and segmentation for advanced users. But advanced functionality should be optional. FinTech analytics should enlighten everyone, not just data scientists. So, try to turn overwhelming data into valuable insights with a focused, simplified view.

Boring experience

In FinTech, usability is not enough. Merely functional apps fail to connect with users emotionally. Yet, many financial products rely on stale designs that get the job done without delight. These lackluster experiences feel like digital chore checklists rather than engaging money management assistants.

Designers who choose a truly user-centric approach create enjoyable interactions that go beyond basic utility. Their apps seamlessly fit into daily financial life. The most effective experiences balance efficiency with moments of surprise and delight. 

Gamification elements, subtle animations, and personalized content keep mundane processes fresh. When software presents data and milestones through bold, vibrant data visualization, this awakens positive emotions. Reward systems via progress bars, confetti, and sound cues – these and other gamification techniques make digital products truly captivating.

Of course, FinTech UX still hinges on clarity and simplicity above all. But the best apps add a layer of humanity and levity to prevent disengagement. They frame finance as achievable and empowering, not just cold transactions. The ultimate goal is creating mobile money experiences that customers enjoy using rather than tolerate. Utility alone is not enough – FinTech interactions must be delightful.

Confusing language and explanations

Apps shouldn’t bewilder users with financial jargon only insiders understand. Digital products stuffed with banking buzzwords primarily frustrate lay consumers. As a result, people search for alternatives elsewhere. 

To attract a broad audience, a product must speak the universal language of clarity and simplicity. Meticulously filter out niche terminology and replace it with accessible wording tied to tangible user goals.

For example, replace “process ACH transfers” with “send money to others”. Use familiar words and conversational tone whenever possible. Define uncommon but necessary terms via simple overlays.

Additionally, you can supplement complex concepts with clarifying visuals and tangible real-world examples. Illustrations, animations, and contextual cues facilitate comprehension for diverse users. Simplification opens FinTech to all, not just finance aficionados.

Of course, carefully balance clear language with technical accuracy. Excessive jargon benefits no one. Designers must humanize the experience by translating the complex into the understandable. Financial literacy for people starts with plain language.

Lack of inclusivity

When building financial products, startups often overlook users with disabilities in their quest for growth. But inclusivity is vitally important. All individuals deserve financial tools tailored to their abilities, not blocked by blind spots in design.

FinTech products must identify and accommodate users with diverse physical, sensory, and cognitive needs. For instance, elderly people with poor eyesight need legible text size. Every interaction should be designed to empower users, not frustrate them.

Beyond moral obligation, accessible design also makes business sense. People with disabilities represent an untapped market with high purchasing power. Capturing this audience allows for greater outreach and customer retention.

Fortunately, companies can make small but meaningful changes to UX that will make a huge difference to certain user groups. Alternate text for images, customizable fonts, thoughtful color contrast, descriptive captions on links, focus indicators – these targeted improvements open doors for millions.

Financial inclusion should have no barriers. Companies building financial apps must recognize accessibility as a fundamental right, not a box to check. Therefore, professionals creating FinTech applications must develop products with all user groups in mind.

Conclusion

As modern businesses strive to enhance finance through technology, user experience remains vital to winning consumer trust and loyalty. Avoiding common pitfalls like overwhelming functionality, confusing data visualizations, and boring interfaces is crucial for any FinTech app’s success. By always putting user needs first and iteratively testing with real customers, IT professionals building software products can craft intuitive and delightful experiences. 

With innovative user interface design services, FinTech disruptors can overcome adoption barriers and create products that seamlessly fit into daily financial life. The industry is developing rapidly, but brands that continually refine UX based on user feedback have the power to flourish. By fixing design flaws and optimizing interactions, FinTech companies can fulfill their mission to provide everyone with access to digital financial services and increase financial literacy.