Innovation has always been at the core of everything we create at Lemon Yellow. When designing digital experiences for fintech users across continents, countries, and currencies, our approach is simple: FinteD, a dedicated fintech design mindset. Given the surge in technology adoption, fintech companies today need innovative solutions to deliver customer satisfaction and thrive, and that's precisely what FinteD offers.

KYC: It truly starts with knowing your customer

The fintech industry's inherent complexities, particularly concerning KYC (Know Your Customer) regulations, is often found to overwhelm users. The requirement to share sensitive data without adequate security assurances leads to increased bounce rates. Fintech leaders must therefore adapt core UX principles like transparency, simplicity, and usability to mitigate these challenges, a task that's often easier said than done.

Be it banks, insurance agencies, digital payment portals, lending platforms, or finance management institutes, they are all contending to prove their digital edge and expertise over competitors. One aspect that users count on to identify the best from good, is experience.

While KYC procedures are fixed regulations, they're often a slow, annoying hurdle for users ready to engage. A FinteD solution tackles this by designing a truly intuitive experience with minimal roadblocks, drawing on insights from how people think and behave digitally to ensure a friction-free experience right from the onboarding.

Having empathized with user’s pain-points, companies have started implementing designs that facilitate easy documentation, smoother processes, and seamless device responsiveness to create an impact among the target audience.

Designing the KYC journey: A user-centric approach

The most significant challenge in a KYC process is to strike the perfect balance between collecting sufficient data for risk evaluation without creating excessive friction in the user journey. Financial institutions today strive to simplify the system to avoid an increase in bounce rates by implementing user-first techniques like intelligent recognition algorithms, omnichannel designs, and storytelling with the help of UX experts.

However, building a simplified, safe, and hassle-free KYC system demands user research, regulatory compliance, and adaptive interfaces. Studies suggest that 1 in every 3 fintech users leaves the show because of bad user experience. So, the question remains: What are some tried and tested solutions? Download the white paper to know more.