The fintech industry has undergone significant transformation in recent years, driven by rapid technological advancements and changing consumer behaviour. The demand for seamless, user-friendly, and secure financial products has never been higher, making user experience (UX) and product design critical elements for success in this competitive landscape. In this article, we look at the current state of fintech UX and product design and the results of our recent industry benchmark survey to explore the trends that will shape its future.
According to Forbes, it is estimated that the Fintech sector might grow up to $174 billion in 2023. New trends in fintech, such as embedded finance, AI and ML are taking the course. The banking sector has managed to adopt a multitude of fintech solutions resulting in more tech-savvy users suggests Forbes. All these developments in the space provoke fintech products, their UX and design to adapt.
To better understand the current state of the global fintech UX and product design landscape, we conducted an online survey of 100 fintech product specialists from leading brands like Wise and AMEX at the end of last year. Based on the results of the survey, we’ve derived the following 5 key observations:
According to the survey results, product is taking centre stage in the fintech sector with more than 90% of companies having dedicated product teams, and 60% of them having a specifically allocated product budget.
Despite the strong focus on product, nearly 40% of fintechs are not considered truly product-led, possibly due to the industry’s past emphasis on “growth at any cost” over delivering sustainable value.
Furthermore, despite product-led being quicker at scaling and sakes, the trend in fintech product switches to the customer-centric approach, rather than product-led growth strategies. According to Fintech Futures, not only fintech companies but also the banking sector, must switch from a product-centric to a customer-centric model. That factor, additionally contributes to our survey result that only 62% of respondents are truly product-driven.
Product management generally offers one of the most lucrative career paths, and the fintech sector is not an exception. 45% of fintech product executives earn more than $100,000 annually.
Even despite the massive lay-offs in tech from the period of November 2022 and March 2023 — fintech space is striving for new specialists. As TechCrunch reports, lay-offs had opened loads of opportunities for fintech startups to hire the best talent ex-FAANG.
Product priorities for fintechs in 2023 include product strategising and planning, as well as improving existing offerings, reflecting the sector’s growing maturity.
Fintech companies are increasingly prioritising the improvement of their products as their main objective. This indicates that these companies are placing a greater emphasis on satisfying their customers in order to remain competitive in the market.
Furthermore, the data gathered by CSI suggests, that fintech companies and the banking sector as well is aiming at deploying customer-centric features for retention in 2023.
Whilst we seem to be on the verge of another financial crisis and economic recession, fintechs remain confident in the sector’s future success, with more than 80% looking to increase their product investments in 2023.
Despite the maturity of the sector and technological advancements, product management is proving to be a major issue for fintechs. Limited capacity, lack of adequate product management systems and leadership are among the top challenges experienced by fintech product teams.
Meanwhile, in the shadow of the recent lay-offs, the value of product management positions specifically is being revised by some major tech companies, including in the fintech space. This might indicate a struggle for the total majority of fintechs to build effective product management processes, and structures and distribute the resources wisely.
With the above insights in mind, we examine some of the major UX and product trends which we expect to be shaping the future of the fintech sector in the section below.
By incorporating AI and ML technologies into their product management and UX practices, fintechs can significantly enhance efficiency, streamline decision-making, facilitate UX customer research and better cater to their users’ needs. Here are just a few of the potential ways AI & ML can help fintech product officers:
To remain competitive and innovative in the future, fintechs will have to focus on finding the right balance between improving existing products and developing new ideas. Adopting a data-driven approach, being agile and fostering a culture of experimentation can help achieve this balance.
With growing concerns about data breaches and privacy violations, security and privacy will become increasingly central to fintech UX and product design. Companies will need to adopt a “security and privacy by design” approach, incorporating robust security measures and privacy safeguards from the outset. This may include implementing biometric authentication, end-to-end encryption, secure data storage, and transparent data usage policies.
As fintech continues to democratize access to financial services, inclusivity and accessibility will become more crucial in UX and product design. Fintech companies will need to design products that cater to a diverse range of demographics, including the unbanked, underbanked, and users with disabilities. This will involve creating user interfaces that are easy to understand, accommodating multiple languages, and ensuring compliance with accessibility standards like the Web Content Accessibility Guidelines (WCAG).
In conclusion, the fintech industry’s rapid evolution and consumer demand for seamless, user-friendly, and secure financial products make UX and product design essential for success. Our industry benchmark survey highlights the current state of fintech UX and product design and the trends that will shape its future. As fintech companies continue to mature, they must leverage AI and ML technologies, find the right balance between improving existing products and developing new ideas, and emphasize security, privacy, inclusivity, and accessibility in their design approach.
By staying attuned to these trends and adopting innovative strategies, fintech firms can deliver exceptional user experiences, capture new market opportunities, and remain competitive in the fast-paced fintech landscape. With a strong focus on product management, investment in UX and product design, and dedication to overcoming product management challenges, the fintech sector is poised for continued growth and success in the coming years.
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