Case Study of Design-Led Small Business Banking Transformation in UX/UI

SME owners regularly confront the need to adjust their business tactics to a constantly changing atmosphere, while still running their day-to-day fiscal activities. It's reminiscent of Formula 1 racers who demand quick and precise judgement-making to avert failure. But in what way can banking services for small and medium-sized enterprises be of aid to business proprietors? We will illustrate how we employed a client-centered method to modernize the next-gen SME banking platform. Agency Written by Alex Kreger, founder of UXDA and UX strategist, this article explores... This article, authored by Alex Kreger, a UX strategist and the founder of UXDA, looks into... Running a small business can be fraught with difficulty due to the disjointed financial services available. Traditional banking institutions are inadequate when covering the different needs of SMEs. As a result, small business owners are searching for assistance in their financial dealings, an understanding of what requires their attention and deciphering important metrics. For many of these entrepreneurs, this is difficult to achieve due to the unfamiliarity of financial matters, so they need an easy and intuitive relationship between their financial data and their business to make the best possible choices for the future. The findings of EY's recent study indicate that a mere 18% of small and medium-sized enterprises and the self-employed feel that their banks comprehend their needs and have strong ties with them. The majority of the respondents expect financial institutions to have an in-depth understanding of their business sector and to take the initiative in communication. Results from the EY report show that 82% of SMEs are enthusiastic about data sharing in order to receive more service and improved financial guidance to encourage their firm's growth. Furthermore, with data from companies of many different sectors, banks could form connections between clients who could use those connections for mutually beneficial business expansion. A large number of SMEs (81%) would find tailored networking options extremely useful for their business and would use them. Digital services utilizing innovative technologies and designed with a focus on the user experience can be of great benefit to small and medium-sized enterprises (SMEs) provided by financial institutions. An EY survey of more than 5,000 SMEs around the world reveals impressive levels of dissatisfaction: 69% complained about not receiving adequate communication from their bank regarding their business, while 76% had doubts about their bank's comprehension of their industry. Banks are increasingly incorporating AI into their operations which may reduce the SMEs’ dissatisfaction. AI is becoming a strong partner for both banks and SMEs in dealing with these matters. By providing SMEs with regular industry updates, it eliminates the need for bank employees to carry out such tasks, thereby freeing them up to offer more comprehensive business growth advice. Furthermore, AI can be utilized to classify and monitor business expenses, as well as recognize opportunities for savings or efficiency. In situations where extensive time or financial expertise is not available, AI can be employed to educate entrepreneurs on the basics of fiscal administration and respond to complex questions in a clear, straightforward, and concentrated way, thereby freeing up more time for the busy businessperson. As more and more super apps are becoming available for individuals, what can be done to meet the needs of small and medium-sized enterprises? Imagine a scenario where banks integrate the most beneficial platforms and tools for SMEs, for example SaaS solutions like Xero, Sage, Quickbooks, Debitoor or Lexware. These platforms can act as the main financial interface to enhance the user experience of SMEs by combining bank accounts, transactions and payable and receivable accounts in one place. Banks could revolutionize the way SMEs manage their finances by bringing together multiple financial services and management tools into one central hub. This would likely lead to more customers and increased customer loyalty due to SMEs having all their banking needs in one location. According to recent research conducted by EY, the majority of SMEs (56%) would be better served by a unified platform for financial management that could consolidate financial products from different banks and financial providers. Moreover, 22% of SMEs would prefer this platform to be provided by a bank, and 17% would be willing to pay extra for it. It is noteworthy to mention that business owners have high standards when considering SME banking User Experience, which is continually altered by developments in digital communications with other banks, financial providers, and digital encounters from other sectors. Ernst & Young's exploration into SME banking transformation reveals that SMEs have an intense craving for a smooth digital journey from their financial service providers, with 53% of them considering it to be essential for growth. Furthermore, 68% of these businesses want to handle various aspects of their enterprise, including financial management, with the aid of digital technology. Currently, we observe how the lines between experiences across different industries are becoming blurred. As the McKinsey report demonstrates, consumers have a growing desire for integrated, real-time, personalized and easy-to-use services. Customers want the same kind of consistent and smooth experiences, no matter if they're streaming movies on Netflix, getting notifications on their iPhones or shopping for items in a mobile banking app. Moreover, by gathering the financial information of SMEs, banks can gain a comprehensive perception of the client's fiscal necessities, present custom-made solutions and, in some situations, proactively avert threats by notifying business proprietors about uncommon transactions. By means of a personalized strategy, banks can amplify customer devotion by making SMEs feel esteemed and secure in the bank's talent in serving businesses within a certain sector. The importance of customer care in fostering SME customer loyalty and satisfaction with financial service providers is undeniable. A McKinsey survey of German SMEs revealed that 36% of respondents picked their primary bank mainly because of their excellent customer service. Furthermore, 75% of survey participants expected their bank or financial service provider to be responsive, quick and efficient. These results demonstrate the necessity of incorporating a customer-oriented approach when serving businesses. EY's findings show there are difficulties, including 22% of small businesses needing assistance to get financial guidance and 21% needing business management advice from their bank. This data shows that banks require a reconsideration of the way they provide customer service in order to meet the banking requirements of SMEs and guarantee their competitiveness in the market. Naturally, there are already great banks in existence that fulfil the requirements of SMEs. As an example, the OCBC Bank business banking app functions as a personal aid for small and medium businesses. The bank’s amalgamated tools give SMEs the ability to view their sales, expenses and cash flow trends from all angles, so they can comprehend their company better and make informed and savvy business choices. Businesses may also secure an expense report of their expenditure to keep costs down and manage shifting expenses needs efficiently. Although some banks are willing to increase their offerings for SMEs in order to eradicate the issue of them not being catered to sufficiently enough, the most prominent attention is being paid by Fintech startups to creating digital banking services for this group. One such company, called Plexe, approached UXDA in order to create an updated, digital product for SME banking. To find out more about the Plexe SME product, click here to watch the video story. Plexe's Fintech platform is a game-changing solution that connects banking services and financial management tools to provide SMEs with a unified service to speed up financial processes and acquire funding. Moreover, the platform is much more than just a finance system; it acts as a partner, continuously observing SMEs and providing real-time information on cash flow and potential funding sources. Overall, its main purpose is to help SMEs to expand their businesses. Since 2018, Plexe has acted as a bridge, connecting SME finance management tools to open banking and providing fast financial aid. In 2021, the company's management determined to increase their product features and customer outreach, likewise expanding into the American market and customizing their existing service. The company was created in response to the long-standing issues SMEs had in getting funding for expansion purposes. The Australian Fintech dedicated to aiding small and medium entrepreneurs ventured into a new market - the USA. To gain an understanding of the specific requirements and difficulties faced by American SMEs and freelancers, UXDA researchers spoke to local business owners and acquired valuable insights. Consequently, the experience and expectations of SME banking clients were factored into the design of a platform that responded to their needs. The survey results demonstrated that the lengthy loan application process of traditional banks was a significant source of frustration for participants, confirming the stakeholders' concerns. This notoriously tough application process involves collecting a great deal of paperwork and often requires weeks of waiting for a response. In spite of the fact that managing finances is a complex task, many entrepreneurs find it challenging due to their limited time and inadequate financial awareness. Many confessed feeling disoriented and powerless, unsure of what to anticipate. Consequently, small business managers devote a great deal of their time and energy to entering figures into spreadsheets manually to undertake calculations as well as gain insight into their firm's financial situation, creating additional anxiety and instability. Plexe set out to be a dependable, long-term companion to SMEs, with the goal of providing them with a bespoke and enhanced knowledge of financial management, surpassing that of existing platforms, and thus improving the lives of entrepreneurs. Plexe views SME owners as if they are Formula 1 racers, skillfully maneuvering through abrupt circumstances as they traverse the business landscape, enduring copious amounts of stress and unpredictability, and always in a struggle for survival. In order to actualize Plexe's strategies, we formulated product ideals to support entrepreneurs: giving entrepreneurs command over their money and plans; offering aid to make financial maintenance simpler and open up fresh business prospects; and aiding them in recognizing and utilizing the most efficient route to reach their business objectives. We developed an SME Fintech platform which is an embodiment of care and confidence, in line with Plexe's mission and product values. Its integrated capabilities enabled us to develop a streamlined design for user-friendliness. The dashboard presents comprehensive data related to the business performance and financials, to equip users with the necessary information to make prudent choices that help grow the business. Creating a streamlined user experience for obtaining and using the necessary funding was essential to eliminate the complexity and bureaucracy from building the business. This allows business owners to capitalize quickly and efficiently on the most valuable business opportunities that necessitate extra financing. Thanks to seamless integrations and a concise dashboard, users can now make business decisions as quickly as they would in a Formula 1 race. Plexe puts focus on the most important business metrics that appear on the dashboard, as well as finding funding, monitoring past due invoices, and most importantly, providing guidance and preparing future plans based on AI-created individualized observations. Through linking to other financial accounts and accounting applications, managers can fully appreciate their financial situation and, with the help of Plexe, gain more beneficial knowledge and predictions relating to all finance matters. For instance, when the business owner is notified about a rise in the rent of their office, they must ascertain its effect on other operations. By going through the invoices that are issued, Plexe can foresee any prospective shortages and offer the business owner guidance on optimising their business operations or use factoring to tackle their short-term liquidity requirements. Plexe is more than just a Fintech platform - it has become a dependable financial ally for sole traders and small businesses. We assist customers in managing their resources to support their enterprise growth. We ensure that they get access to fast and suitable funding according to their business performance. Plus, we help them develop sound financial literacy and make wise decisions, providing ease of mind and more time to build their dream. The core focal point of the platform ─ crystal ─ is a metric of business success that unites past, present, and future performance, supplying pertinent facts and knowledge about the development of the business. It guides users in finding out what could be most beneficial for the firm to promote its advancement. This design promotes a feeling of liberation by offering an ample floor plan, transcending barriers while taking inspiration from life's dynamic movement. It gives a modern look with immediate business sightlines so that users can strengthen their financial circumstances with a prediction for the next month and a calculated plan based on indicators of success. Our goal was to make financial management easier for entrepreneurs and we found motivation in the consistent user experiences offered by companies like McDonald's and Apple. McDonald's is renowned for having unified processes in place to guarantee uniformity of quality in all their sites. Conversely, Apple is well-known for their ability to transform various items into a single answer, leading the way in the tech world. With these models in mind, and adopting a customer-centric point-of-view, Plexe was developed as a contemporary fiscal service tailored to the needs of small and medium-sized enterprises. The UXDA team stayed in close contact with the Plexe team, incorporating their insight that was of critical importance for the project, as the Plexe team had an unparalleled grasp of what was needed by SMEs and self-employed individuals. Drawing from stakeholders’ insights, market studies and end-user interviews, a clear direction emerged for a SME banking design that considers the customer first and foremost. In partnership with the client's team, we constructed a fresh financial management platform to motivate the SMEs and independent business owners to relish life knowing that their enterprise is becoming larger thanks to Plexe. As the Plexe staff put it: “Let your business soar with Plexe!” Plexe's fresh approach puts simplicity first, eliminating the frenzy and pressure connected to running a company's finances. Its role as a dependable advisor ensures users get the guidance they require expediently, and it additionally creates an uplifting atmosphere of trust, serenity, and motivation. The platform's core is anchored by the AI-driven crystal indicator that consolidates key business data. This offers a sense of control and a purposeful direction for success. It digs deeper beyond simply the facts, providing interpretations and advice that not only unveil the current situation but also lay out a path for growth. AI technology, enabled by data collected from various linked services and accounts, provides comprehensive analysis of a business, allowing users to be up to date on future trends and areas of focus. Plexe ensures users of all financial acumen levels to gain an understanding of and have the ability to guide their business towards success. The platform takes care of all money movement and bill details, determining what loan amounts can be accessed based on the company's performance and making these amounts visible to users no matter when they look. The platform recognizes the hardships that SMEs experience maintaining steady cash flow and provides users the ability to adjust loan repayment plans to accommodate their respective requirements. This permits entrepreneurs to customize their financial obligations by selecting between a fixed amount or a certain percentage of their income. Careful use of UX elements enabled us to apply all major platform scenarios using merely a few screens. Communication was of great assistance in facing issues, and our association with the customer's team enabled us to identify the finest user experience prospects within the platform. We crafted a groundbreaking user experience in SME banking and appreciably simplified the necessary onboarding procedure. We proposed shortening the onboarding process, dividing it into manageable parts, and providing prompt access to the service while still complying with legal obligations. There is no doubt that SMEs and self-employed individuals are in need of financial guidance and management help. Business owners are on the hunt for digital platforms that are capable of providing them with the same level of financial services as retail banking. For many years, banks have had a powerful asset ─ trust from SMEs ─ that gives them an advantage in the market, but unfortunately the user experience has not kept pace. This creates a great opportunity for Fintech companies to become involved in the SME banking market, as they are introducing technologies that are geared to the needs of the user. They are bringing different services together onto one platform, making it more straightforward for SMEs to manage their finances. The evolving SME banking sector is looking to further understand customer preferences and implement customer service strategies that will optimize these needs. AI integration is currently a potential bonus, but it will soon become a basic requirement if they want to stay ahead of the competition. Originally seen at https://www.theuxda.com, this content was first published here.

Source: https://medium.muz.li/ux-ui-case-study-design-driven-sme-banking-transformation-97b457115d8d?source=rss------fintech-5