Digital Bank Design: Top Designers Panic, UXDA Excels • UXDA

A digital bank design is a labyrinth of complexity, regulations and high stakes. Despite the allure of high-profile projects and substantial budgets, even the most skilled designers often hesitate to delve into this demanding sector. The cost of hiring a top fintech UX design agency could be very high. The primary reason? The consequences of design flaws in financial services can be catastrophic, ranging from millions in losses to severe breaches of customer trust, and this could ruin even a top designer career.

Recently, I had an insightful conversation with the head of a financial company who posed a familiar question: "How much does it cost for UXDA to fully design and finish a mobile banking app?" This query, while common, misses the broader picture.

I explained, “This is the wrong question. Asking about the cost of finishing a mobile banking app is akin to asking what specific exercise you should do to become strong or how many books you should read to become smart. Everything depends on your lifestyle and on your daily routine. So, the key to delivering the best digital experience is always an ongoing investment.”

A basic mobile banking app can be designed and proceed to development in six months with an initial investment of around $300,000, with more complex solutions potentially exceeding one year and $1 million. However, this is merely the starting point. Continuous investments are essential for maintaining and enhancing the user experience.

A digital bank is not a branch that can be built and left alone for 10 years. For example, banks and Fintechs served by UXDA have average monthly budgets of around $50,000 on UX design. Look at Apple’s strategy: they update their products daily, and major upgrades are released every six months. If we agree that banks are also becoming technology companies, they will have to follow a similar product approach or go out of business in a decade.

Surprised, he remarked, "Wow! A million just for design? I thought it usually costs around $50,000!"

I smiled and clarified, “In many cases, banks spend nothing on UX and design, relying on vendors’ white-label design. And yes, it’s possible to deliver a bank app design for $50,000 by adapting a $100 UI template to the basic functionality and bank’s colors. But the real question is: who is ready to invest millions in digital transformation and innovative service infrastructure to deliver it to customers through a $50,000 copycat UI design?”

Currently, banking services are moving away from brick-and-mortar branches. The majority of customers will never meet bank employees or visit a bank branch in a decade. The only experience they will have with a bank is through the digital bank app because customers are no longer forced to meet bank tellers if all banking services are delivered well. This means that digital financial products—such as banking apps, online banking, immersive banking, wearable banking, insurance services and investment platforms—serve as the primary connection between the bank and its customers. Therefore, the bank's focus should be on ensuring that these digital experiences are enjoyable and competitive.

So, the real truth is that a financial digital product isn't just another delivery channel anymore for modern customers, it's the bank itself. Nowadays, the financial digital product encompasses various services and heavily influences the customer experience, brand perception and market position. Properly designing a user experience for this digital product is not a simple task. It requires extensive research, testing, iterations and a deep understanding of user experience and financial technology.

For a billion-dollar banking or financial business with millions in profits, skimping on the design of its main product is perplexing. Saving on financial product UX design and architecture is like participating in Formula 1 with a $30,000 Toyota Corolla and expecting it to compete with $15 million race cars. Both are vehicles, both have wheels, an engine, a steering wheel and a brake. But these cars serve vastly different purposes and are designed with different expertise and materials. For the Formula 1 team, their tailor-made sports car is their business, and they constantly invest in competitive advantages, fighting to win by even one more second.

Nightmare of designing financial services

Have you heard of the elite category of service designers? These are special forces in the design industry capable of solving any problem. These are the top designers, who combine exceptional skills, deep industry knowledge and innovative thinking with a successful project track record. They master design tools and techniques, continually updating their skills to stay ahead. Known for creative solutions, their work sets new trends and standards.

They deeply understand UX principles, creating digital service designs that are visually appealing, functional and user-friendly, blending creativity with analytical thinking. They understand the psychological and emotional aspects of design, creating products that meet functional and business needs while resonating with users. Their portfolio showcases successful projects, influencing and shaping the future of design.

And everything mentioned above is the exact reason why top designers often refuse to design financial services─because they know all too well that financial service design requires a deep understanding and experience with financial platforms and technology, user behavior and regulatory compliance.

Unfortunately, we’ve seen countless financial digital product designs created by non-professional designers fail to meet the critical requirements of financial services. These poorly designed financial digital products are not only awful but potentially dangerous. Do you remember the confusing bank interface behind Citigroup's $500 million mistake? Or the ‘fat finger’ error that led to £1.1bn of mistaken orders?

Top designers critically assess their own capabilities and are well aware of financial service design challenges that can turn a job into a nightmare:

Extra Responsibility: A digital bank design carries a high level of responsibility because mistakes can lead to significant financial losses and a decrease in trust, even in well-established and financially successful banks. An incorrect design decision can result in security vulnerabilities, data breaches or regulatory non-compliance, costing banks millions and damaging their reputation.
Understanding Financial Terminology: Financial services involve complex terminology and concepts that non-specialized designers might not fully grasp. This lack of understanding can lead to miscommunication, misinterpretation of requirements and, ultimately, flawed designs that fail to meet user needs or regulatory standards.
Extreme Complexity: The financial industry is one of the most complex sectors, with intricate systems, numerous interconnected processes and a vast array of products. Designers need to keep a conceptual model of these complexities in mind to create effective and intuitive interfaces.
Business Context: Understanding the inner processes of banks and financial institutions is crucial. There are always many restrictions and specific ways to do things. A lack of sufficient knowledge in these processes can lead to numerous iterations and updates at best and, at worst, result in a final product that is not regulatory compliant.
Legal and Regulatory Compliance: Financial services are heavily regulated. Designers must ensure that their digital bank design complies with various legal and regulatory requirements, which can be intricate and vary by region. Non-compliance can lead to legal penalties and loss of user trust.
Digital Specifics: Financial technology evolves rapidly, and designers must stay up-to-date with the latest innovations and security standards. Without this knowledge, designers risk creating outdated or insecure solutions that do not meet user expectations or industry requirements. At the other end, many financial institutions rely on legacy or vendor systems, and designers must create modern user-friendly interfaces that integrate seamlessly with these older systems, which can be technically challenging and time-consuming.
Collaboration Specifics: Financial service projects are typically large scale and involve extensive collaboration with dozens of stakeholders. Designers need to manage these collaborations effectively, ensuring clear communication, setting priorities and aligning the project with business goals.
Scalability and Performance: Financial services are accessed across multiple devices, so ensuring a consistent and seamless experience across all devices is essential. Also, financial services requires a scalable design system that can handle long-term development and continual product improvements, which adds another layer of complexity.
User Behavior Specifics: Financial services have unique usage patterns and usability standards that differ from other services. Understanding these specifics requires experience and competence in the financial sector. Designers must account for how users interact with financial products and their expectations for reliability and security. Financial decisions are often emotionally charged, so designers must create interfaces that are not only functional but also empathetic.
Pre- and Post-Launch Support and Validation: The digital bank design process does not end with the delivery of design assets. Designers need to support the integration of their designs into development, assist with the launch process and continue to iterate and improve the product based on user feedback and evolving needs. Before launch, financial interfaces must undergo rigorous testing to ensure they meet high standards of security, performance and usability. This involves extensive user testing, security audits and iterative improvements, making the design process longer and more complex.
Data Visualization: Financial services heavily rely on data visualization to convey complex information clearly and accurately. Designers must be adept at creating intuitive visualizations that make sensitive financial data comprehensible and actionable for users, preventing misunderstandings and ensuring accurate decision-making. This means that designers must understand financial data even better than the product owners in order to translate it into the language of users.

The trap of the “I can handle anything” approach

There is also another opposite breed of designers and agencies that present themselves as masters of all trades. Whether it’s a global digital agency, a local design studio, business consultancy, a freelancer or even an in-house employee, these "I can handle everything" professionals claim expertise across all sectors. From flower e-shops and medical clinic homepages to government service portals and banking platforms, they promise top-notch designs for any imaginable digital service.

Their confidence is palpable. They market themselves aggressively, are quick to agree to all conditions and often win tenders and contracts through sheer assertiveness and the lowest price. This readiness to take on diverse projects makes them fantastic tender hunters and adept cold sellers. But when it comes to the intricate world of financial services, this jack-of-all-trades approach can lead to disastrous results.

One might wonder: Why do top designers hesitate while less experienced generalist agencies jump right into action? The answer lies in the intricate balance required in a digital bank design—a balance between usability, security and regulatory compliance. With deep background, experience and competence, top designers understand the high stakes involved. They know that the work will be difficult, and a minor oversight can lead to catastrophic results—from data breaches to user frustration and financial loss.

Generalist agencies, on the other hand, may not fully grasp the complexities and potential pitfalls of designing for financial services and don’t worry too much about time needed to understand the product and the quality of the end result. They often agree to take on these projects without a deep understanding of what they entail. This lack of awareness can lead to poorly designed interfaces that frustrate users and fail to meet stringent security standards. Consequently, financial institutions frequently turn to specialized agencies like UXDA to completely overhaul these subpar designs.

Oddly enough, it is not obvious to many. Once a bank came to us and asked: "Will your agency have enough time to figure out our service in 2 months? Because the previous design agency took 4 months only to explore our product." Imagine their surprise when, a month later, they received the architecture of their new service from us!

At the end of the day, it all depends on how high the stakes are. For example, if a heart operation is needed, will a person go to a general surgeon who treats everything and everyone, or will they opt for a cardiac surgeon with extensive experience and specialization?

Specialized UX designers bring a depth of knowledge, efficiency and expertise to their industry that generalist designers typically cannot match. Their ability to handle complex requirements, ensure regulatory compliance and create user-centered, secure and innovative solutions makes them invaluable for financial service projects. Let's explore the key differences between generalist designers and specialized financial service design experts:

1. Domain Expertise

Generalist Designers:

They lack the specific knowledge required to understand and design for financial services. They often need additional time to learn and understand financial terminologies and regulatory requirements, which can delay the project. They risk creating designs that may not fully comply with industry regulations, potentially leading to costly revisions or legal issues.