In today’s highly competitive industries, customer choices are often determined by nuances. Particularly in sectors where technology evolves rapidly, such as fintech, understanding and addressing user needs is invaluable. Empathy, as a cornerstone of humanising fintech, enhances customer experiences and revolutionises the design of digital products.

In this article, we will discuss how an empathetic approach leads to greater customer satisfaction, loyalty, and improved business outcomes.

Empathy in Fintech

Empathy in fintech is the ability to understand and feel the needs, emotions, and experiences of customers using financial services. In the context of financial technology, empathy means creating products and services that not only solve users’ problems but do so in a way that is intuitive, friendly, and tailored to their everyday lives. A key element in designing modern financial services is placing the user at the centre of attention, which allows for the creation of more engaging and satisfying experiences.

Empathy differs from sympathy in the context of customer service and product design. Sympathy involves compassion and the desire to help, whereas empathy requires a deeper understanding of the client’s perspective and identification with their emotions and needs. In fintech, an empathetic approach leads to the creation of more personalised and effective solutions that address the real needs of users, rather than merely reacting to their problems. In the fintech industry, sympathy can influence customers’ first impressions of a brand or product. Companies can build sympathy through attractive design, friendly communication, and marketing, but it is empathy that is crucial for long-term relationships.

What Do Fintech Companies Gain from Humanising?

Empathy is crucial for fintech companies as it enables the creation of financial services tailored to the needs of customers. Through an empathetic approach, companies can increase customer satisfaction and loyalty, as well as improve their reputation. Customers who feel understood are more likely to use the company’s services long-term and recommend them to others. 

Empathy also impacts business outcomes and profitability. Better understanding customer needs allows for the development of more relevant and personalised products, increasing their success in the market. Satisfied customers generate positive reviews and recommendations, attracting new users. Fintech companies that invest in empathy can expect better financial results and long-term success.

How to Design with Humanising Principles in Mind? 

User-centered design (UCD) is an approach to design that places the user at the center of the product and service creation process. In fintech, UCD is crucial because it allows for the development of solutions that truly meet users’ needs. This enables companies to create more intuitive and effective financial products.

To understand users’ needs, various research techniques are used, such as:

  • Interviews – Direct conversations with users that allow for the collection of detailed information about their needs and experiences.
  • Surveys – Questionnaires filled out by users that help gather data from a larger group of people.
  • Usability testing – Observing users as they interact with the product to identify problems and areas for improvement.
  • Data collection and analysis – Gathering and analysing user data to gain insights into user behaviour, preferences, and pain points. This data-driven approach helps in making informed design decisions and creating more personalised user experiences.

Personas and user scenarios also play a key role in the design process. Personas are fictional characters representing typical users of the product, helping design teams focus on specific needs and behaviours. User scenarios describe typical situations in which users interact with the product, enabling the prediction and resolution of potential issues. Through UCD, fintech companies can create products that not only meet users’ expectations but also provide them with better experiences.

Proactive Use of Data

According to an Accenture report on empathetic banking, one key step towards empathetic banking is “predicting customer intent at the zero moment of truth.” Banks and fintechs have vast amounts of customer data at their disposal, which should be used to anticipate when a customer will need a financial product. A prime example is the Commonwealth Bank of Australia during the 2020 fires. They proactively reached out to customers eligible for government assistance, rather than waiting for them to request help. They also raised awareness about benefits and discounts that customers might not have known about.

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Humanising Fintech – Practical Example from Revolut

A good and inspiring example for fintechs is Revolut, which places a strong emphasis on personalising its services. The company uses advanced algorithms and data analysis to tailor its offerings to the individual needs of each customer.

Here are some examples of personalisation at Revolut:

  • Personalised spending limits and notifications – Revolut analyses users’ spending habits and adjusts spending limits and transaction notifications to help them better control their finances.
  • Product and feature recommendations – Based on customer behaviour and preferences, Revolut recommends products and features that may be useful to them, such as travel insurance or currency exchange.
  • Interface personalisation – The Revolut app allows users to customise the appearance and layout of the screen to their liking, enhancing their experience and engagement.

Revolut also adopts a user-centred design approach, focusing on UX (User Experience) to ensure products and services meet customer needs effectively. The company involves customers at various stages of product and service development. They regularly conduct usability studies, A/B tests, and user interviews to better understand their needs and preferences.

Examples of user-centred design at Revolut:

  • Beta testing new features – Revolut often releases new features to a selected group of users to gather feedback and make improvements before a full rollout.
  • Surveys and interviews – The company regularly conducts satisfaction surveys and in-depth interviews with customers to learn their opinions on existing products and ideas for improvements.
  • Prototyping and iterations – Revolut uses agile methodology, quickly iterating on prototypes of new features based on user feedback.

In summary, Revolut actively uses personalisation and user-centred design to create products and services better suited to customer needs. Advanced data analytics and regular studies and tests involving users help the company deliver personalised, satisfying experiences.

See how we transformed RIGT’s offerings with the NASS E-Payment app by humanising fintech for the Iraqi market.

The Future of Fintech Lies in Empathy

An empathetic approach to designing fintech services brings numerous benefits, but it also faces certain challenges. The difficulties associated with implementing empathy can stem from technological, organisational, and cultural barriers. Companies must tackle challenges such as integrating advanced algorithms, adapting organisational structures, and building a culture based on empathy. Overcoming these obstacles requires investing in training, creating an empathetic organisational culture, and using tools and technologies that support empathetic design.

Despite these challenges, the trend of humanising fintech is expected to grow and gain significance. Predicted trends indicate an increasing use of artificial intelligence and data analysis to create more empathetic and personalised services. As these technologies evolve, the opportunities for further development and innovation in the realm of empathy in fintech will expand. Companies that invest in empathy and personalisation can expect increased customer satisfaction, loyalty, and better business outcomes, making empathy a cornerstone of modern financial services.