Five years ago, my team and I analyzed why Revolut, Monzo Bank, N26, Monese, Wise, and bunq are stealing market share from HSBC, Barclays, Standard Chartered, Wells Fargo, Bank of America, Morgan Stanley, Citi, BBVA in the USA, Santander, PNC, and State Street.
We analysed hundreds of reviews, reverse engineered their userflows and took extensive notes on what and how they tackle the UX and what can traditional banks learn from the new comers.
Key Insights from Neobanks
Quick Wins Matter
Neobanks start with small, easy tasks (e.g., phone verification) to build momentum. Traditional banks, on the other hand, make you fill out forms longer than your grocery list.
Break It Down
Instead of overwhelming users with text-heavy screens, neobanks split tasks into bite-sized steps. The result? Users actually enjoy the process. (Well, as much as one can enjoy onboarding.)
Data Collection Made Easy
Native inputs, predictive features, and auto-filling forms reduce user effort. Less typing = happier users.
Help is Everywhere
Tutorials, popups, and FAQs guide users through tricky steps. Contrast that with traditional banks, where you’re often left feeling like you need a Ph.D. in banking to proceed.
Entice Before You Demand
Neobanks let users explore the app before ID verification, building trust and engagement.
Gamification
Traditional apps are function focused. Neobanks? They make saving and budgeting feel like a game.
Traditional Banks’ Biggest Miss:
User-centric design. Instead of simplifying experiences, many banks still prioritise legacy processes and internal efficiencies. They are still engineering focused then design lead and that makes for an experience which doesn’t work today.
They need to learn that technology alone won’t save the day—delightful customer experiences will. At the end of they day, customer only sees the interface and that needs to be, above all, humane.
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