Design thinking as an enabler for financial well-being
Money-related worries are familiar to most of us in an era marked by economic turmoil due to events like the COVID-19 pandemic and geopolitical tensions. This stress impacts our moods and overall well-being, work productivity, and social interactions. However, with the advent of technology, more and more innovative solutions are emerging to address such challenges, particularly in the field of banking and fintech.
The banking sector is witnessing a shift in customer expectations driven by the increasing digitalisation of services and the availability of modern financial solutions. Due to changing customer demands, banks must extend their role beyond mere transactional services and find ways to offer added value for their customers. One opportunity area is to focus on enhancing customers’ financial well-being.
Design Thinking and service design play a crucial role in this transformation. These methodologies centered around creative problem-solving and customer needs, enable banks to create effective, user-friendly financial products and services. This customer-centric approach offers a competitive advantage, meeting and exceeding customer expectations in a crowded market.
Empathy and Innovation in Digital Banking
The customer experience is paramount in the digital age, especially when digital interactions replace traditional human interactions. Design thinking, which emphasises empathy and understanding of customer needs, is vital in this context, and banks that prioritise user experience can gain a competitive edge and build stronger customer relationships.
Design thinking involves delving into customers’ lives to understand their behaviours, needs, and challenges. This approach transforms digital offerings into more user-friendly and comprehensible services. It also positions banks to be proactive, allowing them to anticipate and shape future financial trends and services.
Service design complements design thinking by refining all customer interactions to ensure a seamless experience from start to finish. This method considers every service aspect, from task initiation to offering customer support during challenges, to ensure that each point of contact contributes positively to the overall experience.
Practical Application of Design Thinking in Banking
The practical applications of design thinking in the banking sector are evident in numerous initiatives. For instance, Bank of America’s Keep the Change program and National Australian Bank’s Quickbiz Loan are well-known examples of how banks have utilised design thinking to create customer-centric financial solutions.
In addition to these examples, using design thinking in digital banking and financial well-being was at the forefront of a study conducted as part of a thesis. This thesis, ”Promoting Financial Well-being through Service Design,” delves into the transformative impact of design thinking and service design on the banking industry. By employing design thinking strategies, the study showcases a practical example of how banks can deliver value-added services that positively impact customers’ financial well-being. The practical application combines data-driven tools like cash flow analysis, smart budgeting, and automated savings with personalised insights and guidance. This approach is further proven to help users gain a comprehensive understanding of their finances and future potential.
The insights from this thesis, based on an in-depth analysis of common financial obstacles faced by customers, demonstrate the profound effect of design thinking in crafting tools that provide timely advice and insights. Such tools position themselves as financial companions, helping users understand spending patterns, offering budgeting tools, and delivering financial advice tailored to individual aspirations and circumstances. This approach, deeply rooted in understanding user behaviour, has proven to empower customers to proactively manage their finances, thereby reducing financial stress and enhancing their sense of financial security and prosperity.
Conclusions
Design thinking is a transformative tool for banks aiming to improve customer financial health that Master Degree student in Service Design, Siina Tanninen points out. Banks can transition from traditional transactional entities to becoming allies in promoting financial well-being by focusing on customer needs and fostering innovative solutions. This approach not only meets customers’ evolving needs but also positions banks to remain competitive and relevant in the digital era.