Customer Experience and Engagement in Finance Apps

Yogesh Pant
Apr 10, 2024


Technological developments and the rise of disruptive FinTech firms that are upending established institutions are driving a dramatic change in the financial services sector. Customers' interactions with financial goods and services are changing as a result of this change, raising expectations for smooth, customized experiences at every touch point. 

Despite these developments, it is impossible to overestimate the importance of the client experience in setting financial services firms apart from the competition and encouraging devoted patronage. Delivering extraordinary experiences that exceed customer expectations must be an organization's top priority, as customers want more ease, transparency, and efficiency. We'll look at the tactics, best practices, and technology in our Ultimate Guide to Customer Experience in Financial Services to see how they help businesses succeed in an ever-changing market.

Digital transformation is still a hot subject in the financial services industry as the world economy shifts from extreme conservatism at the height of the crises to the cautious optimism of a post-pandemic society. Fintech financing supported by venture capital climbed gradually from the first quarter of 2019 to the fourth quarter of 2020, with funding ranging from $1.86 billion to $2.55 billion (Huron Consulting Group). Compared to the first half of 2020, investments in insurance technology climbed by 64% in the second half of the year. 


80 percent of customers think that a company's customer experience matters just as much as the quality of its goods and services.

As a result of the well-funded, disruptive newcomers to the industry (such as Mozper, Gimi, Lunar, Hippo, Lemonade, Next Insurance, etc.), established institutions are finding it more challenging to stay competitive. Products and services that were previously thought to be futuristic are now standard fare for financial services trying to get a piece of the more astute market (through the lens of offers, technology, and products). 

The emergence of neobanks, or online-only banks (such as Varo Bank, Ally, Chime, SoFi, Marcus by Goldman Sachs, etc.), highlights customers' growing desire for digital business interactions. The primary drivers of this tendency have been the digital nativeness of millennials and their persistent dissatisfaction with traditional financial service providers whom they see as "out of touch." Generation Z is also expected to contribute to this trend by increasing their financial institutions' demands. Specific incumbents are capitalizing on the mania (Marcus by Goldman Sachs, for example), while others are finding it difficult to establish a presence in this new environment because they are trailing behind in their digital reforms.  

Importance of Customer Experience in Finance App Development 

In the financial services industry, customer experience (CX) refers to all the interactions between a client and a financial institution, from the first point of contact to continuing support and servicing. It includes the customer journey's touchpoints, such as creating accounts, making purchases, asking for help, and resolving problems. Consumers' experience (CX) significantly impacts consumer happiness and loyalty, which in turn affects how well financial institutions can draw in and keep clients. 

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For example, CX is significantly impacted by the functioning and usability of online banking services—consumers who manage their funds online demand solid security measures, efficient procedures, and intuitive interfaces. A smooth and intuitive online banking experience increases client loyalty and happiness.  

Consistency across channels and touchpoints is necessary for a holistic CX to be delivered. Customers want a smooth experience that flows across channels, whether they are engaged in person, online, or via mobile devices. Customers may easily access services and information with the ease of continuity provided by an omnichannel strategy. 

In contrast, inflexible procedures, constrained lines of contact, and fragmented experiences would have been hallmarks of earlier CX methods in the financial services industry. In the current digital era, modern organizations prioritize CX on trends, agility, customization, and innovation to satisfy changing consumer demands and preferences. In an increasingly competitive market, contemporary financial institutions aim to differentiate themselves through exceptional customer experience (CX) delivered through the use of technology, data-driven insights, and customer-centric initiatives. 

The financial services industry is changing quickly, with FinTech businesses becoming increasingly creative and customer experience (CX) becoming a fundamental difference. Given the increased competition and changing customer expectations, financial institutions need to prioritize CX to be competitive and promote long-term development. 

CX is essential to the performance of financial institutions since it directly affects important business metrics:

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Customer Retention

An exceptional customer experience (CX) at a financial institution fosters long-term client retention and loyalty. Organizations may lower attrition and keep valued clients by providing exceptional services and anticipating their requirements. 

Churn Rate

A great customer experience (CX) lessens clients' chance to defect to rival businesses. Organizations may preserve customer connections and reduce turnover by funding CX projects that improve satisfaction and alleviate pain. 

Brand Reputation

The financial services industry's opinion and reputation of brands are greatly influenced by customer experience (CX). While negative experiences may damage a business's reputation and turn off prospective consumers, positive experiences encourage positive word-of-mouth referrals and increase brand trust and credibility.  

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Customer Lifetime Value (CLV)

Over the course of their lifetime, satisfied consumers are more likely to participate in repeat business and produce more income. Financial institutions may increase CLV and get more value from their clientele by concentrating on CX and cultivating solid customer connections. 


CX directly affects revenue generation through its influence on client acquisition, retention, and upsell prospects. Customers who are happy with a financial institution are more inclined to stay in touch with them, which increases the likelihood of product uptake, cross-selling, and, eventually, revenue growth. 

Strategies for Enhancing User Engagement and Retention 



In financial services, personalization refers to tailoring communications, services, and products to each individual client's particular requirements and preferences. To build a stronger relationship and increase satisfaction, this might include making customized suggestions based on financial habits, making offers that are specifically suited to certain life events, and sending out personalized communications that take into account the customer's past interactions with the bank.  


Providing an excellent client experience requires convenience, which includes simple access to accounts, transactions, and support channels. Easy-to-use mobile applications, smooth digital banking experiences, and round-the-clock customer service guarantee that clients can effectively manage their money and get help when needed, boosting client happiness and loyalty. 

Security and Trust

Customers entrust financial institutions with sensitive financial information; thus, security and trust are essential components of a pleasant customer experience in the financial services industry. Financial institutions may instill confidence in their clients by implementing strong security measures, guaranteeing data protection, and openly disclosing privacy and security procedures. This lets them reassure them that their funds and data are protected. 

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Transparency and Clarity

Building client confidence and trust requires open and honest communication of costs, terms, and conditions. Financial institutions should make clear and straightforward disclosures; complex language or hidden costs should be avoided since they might annoy or confuse clients. Transparent operations increase accountability and reinforce the bond between the organization and its clients.

Efficiency and Responsiveness

Resolving questions and problems promptly is essential to providing a satisfying client experience and proving that you are attentive to their requirements. Simplified processes, quick responses to requests and concerns, and proactive communication throughout the customer journey ensure that customers feel supported and appreciated, increasing their happiness and loyalty. 

Personalization and Customization in Finance Apps 

Improved Client Relationship

Customization makes a big difference in the whole consumer experience. When financial services and advice are tailored to customers, they feel appreciated and understood, which increases customer happiness and loyalty. Users are more likely to interact with the app or platform frequently when they have access to tools and information relevant to their particular financial circumstances. 

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Better Financial Decision-Making

Customers may make better financial choices using personalized information and suggestions from personal finance applications. Users may maximize their financial plans by receiving individualized advice based on their unique circumstances, whether it comes to budgeting, investing, or debt management. 

Increased Engagement and Retention

More robust engagement is fostered by a tailored experience, which increases user retention. Customers are less likely to move to rivals when they recognize the benefits of mobile app customization services, increasing the likelihood of staying with the app or platform. 

Targeted Marketing and Offers

Financial institutions may send consumers offers and marketing communications tailored explicitly to them using customized data. Customers are more likely to convert when businesses provide relevant product recommendations and incentives based on their knowledge of their requirements and preferences. 

Risk Mitigation

Apps for personalized finance may also assist users in adequately managing risk. By evaluating each user's unique investment preferences and risk tolerance, the app may provide recommendations for suitable investment products that are in line with each customer's risk profile. 

Customized Suggestions

Based on the user's financial objectives and risk tolerance, personalization allows the app to provide customized financial advice, such as appropriate retirement plans, insurance policies, investment possibilities, or mortgage products. Customers will be more likely to experience favorable results and will be able to accomplish their goals more quickly as a result.

Improved Savings and Budgeting

Using expenditure analysis and tailored budgeting solutions, customers may learn more about their spending patterns and areas where they can save more efficiently. This can result in better financial discipline and the capacity to define and meet savings goals.

Effective Upselling and Cross-Selling

Financial institutions may find possibilities to upsell or cross-sell new goods and services to current clients via personalization. A bank may provide a customized loan product to a consumer depending on their creditworthiness and payback history, for instance, if they have a credit card with them. 

Early Fraud Detection

AI algorithms may be used by personalized banking applications to identify odd trends in financial transactions and quickly indicate any fraudulent activity. Customers benefit from this since it guards against financial losses and keeps their accounts safe from unwanted access. 

Extended Customer Connections

Personalized financial services encourage loyalty and trust, strengthening bonds between clients and financial organizations. Regular users are more likely to tell others about the app, which promotes organic development via word-of-mouth advertising. 

Gathering and Analyzing User Feedback for Continuous Improvement 

A crucial element of agile, entrepreneurial leadership is collecting and evaluating client feedback. Customer feedback is your customers' way of saying what they feel, think, and anticipate from your good or service. It aids in your comprehension of their requirements, inclinations, problems, and degrees of fulfillment. You may determine the advantages and disadvantages of your good or service, find fresh chances for development or innovation, and confirm your presumptions and assumptions by gathering and evaluating client feedback. Since your company acknowledges and appreciates them, consumer feedback also aids in fostering a relationship of trust and loyalty with your clients.   

Several approaches exist to get and evaluate client feedback depending on your objectives, available resources, and situation. Here are a few of the most popular and successful techniques:


One of the most widely used and adaptable ways to get client feedback is surveys. Surveys may be used to gather behavioral, psychographic, and demographic information and gauge client happiness, loyalty, retention, and advocacy. There are many ways to distribute surveys, including in-person, via social media, mobile, online, and email. Clear and precise goals, pertinent and concise questions, and suitable answer alternatives should all be included in the design of surveys. SurveyMonkey, Typeform, and Google Forms are a few examples of tools that you may use to design, distribute, and evaluate surveys. 


Conducting interviews is another effective way to get input from customers. During an interview, you may ask open-ended questions, elicit facts, and watch their body language and emotions to chat more deeply with your clients. By conducting interviews, you learn a lot about the reasons for, annoyances, expectations, and experiences that consumers have had with your product or service. Interviews occur in person, over the phone, or video conference. Tools such as Zoom, Skype, or Calendly may be used for scheduling, conducting, recording, and transcribing interviews. 

Focus Groups

A kind of group interview, focus groups include inviting a limited number of clients –typically six to ten –to participate in a controlled conversation about your product or service. Focus groups may be used to produce new ideas, thoughts, or solutions and to investigate your target audience's various viewpoints, views, and attitudes. Focus groups may be held virtually using tools like Zoom, Webex, or GoToMeeting, or they can be held in person in places like conference rooms. Tools such as Jamboard, Mural, and Miro may be used to encourage cooperation and idea-sharing during the focus group meeting. 

User Testing

By seeing customers use your product or service in a real-world environment, you may get feedback from them. User testing may assist you in determining any issues, mistakes, or annoyances that your clients may experience, in addition to assessing the usability, functionality, and attractiveness of your product or service. User testing may be carried out in a field setting, where you can see consumers in their natural habitat, or in a lab setting, where you can regulate the equipment and surroundings. To perform and record user testing sessions and get feedback, you may utilize technologies like Lookback, Hotjar, or UserTesting. 

Reviews and Ratings

Customer feedback takes the form of reviews and ratings, shown publicly on various websites, blogs, social media platforms, and app stores. Reviews and ratings assist you in gauging the general impression and standing of your good or service and in finding out which particular qualities, advantages, or disadvantages your clients find appealing or unappealing. Potential consumers depend on the opinions and experiences of other customers when making purchases. Therefore, reviews and ratings may also have an impact on those selections. To keep an eye on and react to reviews and ratings, you may utilize resources like Google My Business, Yelp, and Trustpilot. 

Case Studies of Finance Apps with Exceptional User Experiences 

Monzo Bank 

Founded in 2015, Monzo is a digital-only bank that offers current account services, cost-saving credit cards, and business banking solutions to its clientele. In the UK, they have assisted over five million clients. Monzo is up against fierce competition from other modern neobanks and existing banks that provide digital services as more and more clients switch to online banking and use less cash. Young adults who are proficient with technology and seek top-notch money management tools should be Monzo's target market. They also want the best possible experience when using their phones for banking.  

Monzo may differentiate itself by addressing issues related to consumer spending, providing intelligent alerts, and helping clients handle their finances and save money. Its key advantages include:

  • It's a user-friendly smartphone app.
  • Quick spending notifications.
  • Unique savings buckets for budgeting.
  • Excellent customer service.

Meanwhile, its primary issue is the need for more financing and investment opportunities. Monzo must expand into lending, investing, and business services for other companies and strengthen its money management capabilities for its clientele. 

The bank should have a seamless online and human component to provide a simple, transparent, personalized service. This entails improving its mobile-first approach and providing individualized assistance using intelligent software and equipment. Joining open banking is another way to manage the direction of your finances. You can also get online or in-store support when needed more than usual. By demonstrating to its target demographic that Monzo is a knowledgeable, involved, and considerate digital bank, the company hopes to win over additional consumers.  


Client feedback is essential to promoting the ongoing progress of acquisition techniques. By routinely gathering and evaluating customer feedback, you may receive important insights into the requirements and expectations of your target audience. You can then use this knowledge to develop and improve your strategies to appeal to your target audience and achieve the desired results. 

It's critical to gather customer feedback following best practices, including making it simple for consumers, asking pertinent questions, and using various feedback sources to maximize its value. Furthermore, data analysis is essential for evaluating client comments and deciding on your acquisition tactics with knowledge.

Creating a client feedback loop is another crucial step in promoting ongoing development. This entails gathering customer input, evaluating it, and continuously using the insights to enhance acquisition tactics.

For well-informed decision-making, balancing consumer input with other data sources is crucial. One must be proactive and inventive to overcome typical obstacles when using customer feedback, such as trouble gathering feedback and inconsistent feedback.

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