UX Strategies for Small Banks

by Alex Kreger

In this age of quick account access, slick banking apps, and services at the touch of a button, smaller banks need to have a UX strategy to maintain their competitive edge. But how can a smaller bank with limited resources develop a UX strategy that could match the services and accessibility of large financial institutions?

The competitive edge comes from more flexibility, quicker UI launches, and an unmatched innovation potential. Combining these advantages with advances in FinTech services can help them roll out a UX strategy that will not only keep up with large institutions but make a lasting impression that solidifies their place in the digital market.

A strong UX strategy is more relevant for smaller banks. Small banks have limited resources, but they are much more flexible. Their organizational structure can quickly assimilate client-centered strategies more so than large financial institutions that have internal competition between different departments. A UX strategy for small banks can achieve fascinating results through small impacts. It can show key points that create a detailed roadmap to user-centered services to match customer needs.

This is clearly seen in the success of FinTech companies. They have fewer people and less budget, so they are focused on effective solutions, instead of process bureaucratization. They use strict prioritization and customer-centricity. They quickly establish a customer base that previously took dozens of years for conventional banks. For example, where a typical bank clerk for an unconventional request simply says, “This service is not provided,” a FinTech company will analyze the number of such requests and launch a solution that increases their competitive advantage.

For small banks, such a strategy can change everything. The largest banks provide hundreds of services, but 95% of small bank customers use only five to seven. If small banks focus on the key services customers use, it will bring them as close to user needs as possible. With a deep understanding of clients’ needs, small banks can deliver a targeted service to outcompete large banks.

To create their own advantages, small banks should use the UX methodology and Design Thinking approach to identify customers’ touchpoints. For each of them, the bank can provide the most pleasant and frictionless user experience. A small bank can focus on a service, like digital account opening.

A small bank can delight their customers with a beautiful and convenient mobile application that users will proudly demonstrate it to their friends. A small bank can roll out instant online chat for support to avoid long waits on a phone line. The possibilities are limitless.

Small banks have an underestimated innovation potential. It is much easier for them to integrate digital technologies. They are like small fast boats capable of penetrating where the huge liners of large banks can’t go. This ability to quickly innovate gives them very good prospects for cooperation with FinTech companies. This partnership can create increasing competitive advantages for small banks.

More insights on this topic could be found in UXDA blog posts:

UX Design Agency Reveals UX Approach That Made Us The TOP3 Banking Innovative Company –http://www.uxdesignagency.com/blog/UXDA-as-TOP3-Innovative-Banking-Company

User Experience Design and Behaviour Psychology Can Grow FinTech and Banking Products Sales –http://www.uxdesignagency.com/blog/UX-Design-Can-Grow-FinTech-and-Banking-Products-Sales

How Banks Are Losing Millions by Ignoring UX Design – http://www.uxdesignagency.com/blog/How-banks-are-losing-millions-by-ignoring-UX-design

Why Fintech Outcompetes Banks by Betting on User Experience –http://www.uxdesignagency.com/blog/Why-FinTech-Outcompetes-Banks-by-Betting-on-User-Experience

Why People Are Stuck With Finances And How Technology Can Change It –http://www.uxdesignagency.com/blog/Why-People-Are-Stuck-With-Finances-And-How-Technology-Can-Change-It

Alex Kreger is founder, CEO, and UX strategist at UX Design Agency, which specializes in digital usability for financial institutions. Follow him on Twitter at @uxdesignagency and learn about his firm and its work at http://www.uxdesignagency.com.