Designing For Trustworthy Fintech UX: 8 Strategies to Increase Trust in Your App
Fintech Design
UX Design
May 7, 2023
  • Trust is crucial in fintech UX design, as money is involved and users prioritize trust when choosing a bank (McKinsey report).
  • The older generation, despite attractive fintech services, still prefers traditional banks due to fear and lack of awareness.
  • Transparent data collection and solutions are essential for designing a trustworthy fintech banking partner.
  • Poor fintech UX design can lead to user frustration and suspicion towards the app.
  • Trust should not be compromised in the pursuit of accessible and convenient finance.
  • Extra measures may be necessary to prioritize building trust in fintech user experience.

How to Design For Fintech UX?

8 Strategies to Increase Confidence in Your App infographic

8 Strategies to Increase Confidence in Your App

1. Multi-factor Authentication:

Multiple forms of identification or biometrics such as facial and voice recognition, fingerprint, or one-time code add extra security than the traditional username and password. Implementing this will prevent hackers from gaining access to user data and protect against fraudulent activity. It provides reassurance to the users that their money is safe. Furthermore, it demonstrates your app's commitment to protecting the data and money of users.

2. Automatic Logouts:

Automatic logouts should be implemented when users have periods of inactivity on the app. Often, users forget to log out of apps and this puts their data and money at risk. Automatic logouts prevent unauthorized access and security breaches. This helps in creating a seamless experience for users who know that they can rely on your app to protect their finances.

3. Transparency in data collection:

Your app needs to seek permission before collecting any user data. It should also explain why data is being collected and benefits of data collection can be highlighted such as personalized recommendations and regular reminders. Thus, your app needs to include the following concisely and clearly in fintech ux design:

  • Informed consent
  • Terms of use and privacy policies
  • Disclosure of what information will be used by third parties
  • Transparency around any hidden charges

4. Educational/demo videos:

Creating educational videos that are of high quality, up-to-date, and accurate on how everything works is one of the best ways to earn trust. It instills confidence in users as they're updated with reliable information. Users feel more in control of their financial journey in the app. These tutorials need to be in simple language so all users can understand. Additionally, FAQs and instructions can be added for common doubts. All this can erase common fears emerging from unawareness especially if the fintech product is new in the market.

5. Notifications:

Too many notifications can frustrate a user, but in fintech apps, notifications are important in building trust. Your fintech app needs to send notifications about their account activity, especially money transfers and alerts on fraudulent activity. It’s beneficial if your app keeps notifications automatic by default. This constantly reminds the users that their money is being securely managed.

6. SMS Code: 

SMS Code is one of the forms of multi-factor authentication and it's important to prevent unauthorized access. However, this feature needs to be used carefully. It should include the following:

  • Tips on how to use the code
  • Advice on not sharing the code
  • Limiting time on the validity of code

7. Additional Safety-related Tips

Additionally, your app should provide safety-related tips wherever necessary to increase trust in fintech user experience. This can be throughout the user journey such as reminder to  Some examples include:

  • Encourage users to create a strong password
  • Give alerts on any signs of fraudulent activity
  • Update security protocols and inform users about them
  • Provide instant customer support on security issues

8. Signs of Trust:

Incorporating signs that make your users trust your app is one of the proven ways to expand your customer base and improve the overall fintech ux design. These signs include (but are not limited to):

  • Any past awards or accomplishments
  • Positive customer testimonials
  • Third-party endorsements
  • Licenses and security certificates such as PCI-DSS or ISO 27001
  • Number of users/app downloads 
  • Number and names of countries in which the app operates

Conclusion:

Trust is the most significant aspect in designing for fintech that can determine a fintech company’s future growth and success. By implementing these strategies and promptly resolving security issues in fintech user experience, your app can demonstrate a commitment to prioritize user trust. This should be coupled with seamless navigation, intuitive experience and jargon-free language. All this will inevitably lead to increase in acquisition of new users and retention as trust can help in building loyalty towards the fintech product.

Ready to turn your fintech ideas into reality? Let's team up

Read more:

Fintech UX Design: 7 Must-Have Features

10 Fintech Design Trends in 2023

Sources: https://www.forbes.com/sites/forbestechcouncil/2021/06/02/how-localization-can-help-solve-fintechs-trust-issue/

Currently documenting the journey of building a Product | Co-founder at Alien. I am passionate about the creative field, which led me to initiate my journey into business with a focus on digital products. Beyond my professional pursuits, I find solace in traveling and taking breaks from city life, often indulging in trekking adventures.

FAQ

Why is trust important in fintech applications?

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Trust is crucial in fintech applications because users are entrusting their financial information, transactions, and personal data to these platforms. Building trust ensures that users feel confident and secure while using the app, which increases customer loyalty and satisfaction.

How can I enhance the security perception of my fintech app through design?

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To enhance security perception, design features like two-factor authentication, biometric authentication options, secure socket layer (SSL) encryption, password strength indicators, and regular user education on security best practices can be implemented.

How can fintech companies address the fear and lack of awareness among the older generation?

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Fintech companies can bridge the gap by providing clear and accessible information about their services, emphasizing security measures, offering educational resources, and providing personalized support through multiple channels to build trust and alleviate fears.

Why is transparent data collection important for a fintech banking partner?

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Transparent data collection ensures that customers' personal and financial information is collected, stored, and used in a clear and ethical manner. It builds trust and confidence in the fintech banking partner's handling of sensitive data

How does poor UX design in fintech apps contribute to user frustration?

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Poor UX design can lead to confusing navigation, complex processes, and unintuitive interfaces, making it difficult for users to accomplish tasks efficiently. This frustration arises from a lack of clarity, excessive steps, or unclear instructions, hindering the user experience.