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FINTECH: THE UX OPPORTUNITY

Raphael Ouzan

June 2014

B A N K I N G B A N K S O N C O N S U M E R F R I C T I O N

{ E X A M P L E O F C O N S U M E R F R I C T I O N }

F R I C T I O N

To consumers: • Unclear fees and plans • Painful authentication processes !

To the industry: • No Plug & Play - Monolithic institutions • Aversion to risk • Less than innovative reaction to regulations

W H AT A B O U T P E R S O N A L F I N A N C E E D U C AT I O N ?

A. More than $102

B. Exactly $102

C. Less than $102

Suppose you have $100 is savings account earning 2% a year. After 5 years, how much would you have?

Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year.

After 1 year, would you be able to buy:

A. More than today

B. Exactly the same as today

C. Less than today

A. True

B. False

C. I don’t know

‘Buying a single company stock usually provides a safer return than a stock mutual fund.’

L A C K I N G

• 86% of Americans can’t answer this quiz properly

• More than one-third of American workers have less than $1,000 saved for retirement

U X O P P O R T U N I T Y

Consumer Friction Lack of education

+

=

• Towards contextual, customer-centric view

• Innovation not limited to backend fintech.

• New paradigms: Bitcoin, mobile payments

F I N T E C H I S S H I F T I N G

A N D T H E M A R K E T I S R E A D YAccenture survey:“If these companies offered banking services, how likely would you be to bank with them?

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O U R C A S E S T U D Y TO D AY

!

• Control

• Insights

• Transparency

• Security & Trust

Can checking your bills not suck?

C O N T R O L

• Started with “set and forget model” – Assumption: “People don’t want to work”

– Limited to email alerts and monthly report

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E N G A G E M E N T

• {webapp}

C O N T R O L

“Set and forget model” = DIDN’T WORK – Limited mindshare - People loved the service but

not part of their “workflow”

– As a result: No WoM

C O N T R O L - AT T E M P T # 2

Maybe people do need to work at list a little

to achieve peace of mind?

!

Pioneering engaged security

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Engagement – new approach [attempts]

More attemps…

1. Notification

T H E S O L U T I O N – H A B I T F O R M I N G U X

2. Action

And Repeat!

3. Reward

R E S U LT: I T W O R K S

Banks: From institution to application ”It’s no longer about wallet share. It’s about app-driven mindshare” Marc Hochstein, American Banker

I N S I G H T S – C A N P E O P L E H A N D L E C H A R T S T H AT A R E N OT P I E C H A R T S ?

Smart– the right insights [attempts]

Y E S .

I N S I G H T S – R E S U LT S

Spend Analytics Launch: Impact on retention was drastic

TRANSPARENCY

Where is my money going?

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B U T W H E R E I S M Y M O N E Y G O I N G ?

T R U S T

• Trust is an impression made within 2 seconds

• Requires high design standards and great care for details

S E C U R I T Y

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A LWAY S AVA I L A B L E