User Onboarding Trends in FinTech: Lessons From Top UK Apps

The FinTech industry is currently witnessing an exceptional demand for expeditious and effortless user onboarding. According to the research by Signicat, 68% of consumers in 2022 abandoned an application in retail bank apps - up from 63% in 2020.

It is interesting to note that there are differences on the country level, and the customers from more “eIDV mature” countries like the UK or Sweden (eIDV stands for “electronic identity verification that matches the data provided by an individual, such as name, date of birth, address, against various databases”) have higher expectations from the products and as a result, abandon the applications more often.

Being in the FinTech industry, I was inspired to assess the onboarding flows in several of the top downloaded financial apps in the UK. UK financial providers have to navigate a challenging landscape.

They operate under the strict regulations of the Financial Conduct Authority (FCA) while simultaneously catering to a broad mass market. Striking the right balance between regulatory compliance and user-friendliness presents a considerable challenge for these companies.

I have reviewed several apps from the Top finance apps in the UK AppStore, including Wise, Monzo, Starling Bank, Plum, and Zopa. Below, I’ve shared some of the nice practices they use to onboard their clients successfully.

Display the Unique Features of Your Product Before the Client Starts Applying for an Account

In other words, start engaging your clients as soon as they install your app. This initial point of interaction with users is crucial for capturing their attention and conveying the app's potential uses and unique qualities.

Wise makes great use of the initial screens to explain why Wise is different. The screens do not simply list Wise’s main functions, but also give a chance to check Wise’s exchange rates right away by following the Check Our Rates link.

In this way, before even getting started to use the app, you can understand what Wise offers and compare its offerings to the competitors.

Inform Clients How Long the Process Will Take and Where They Are

Being transparent on how much time is needed to complete the process or how many steps are left makes clients understand the company respects their time, and creates a positive attitude from the very start.

Starling Bank provides an estimate on how long the onboarding process will take at the very beginning (hopefully a few minutes!), and what is required to complete it successfully. Monzo divides the KYC process into visually separated blocks and positively supports you while you progress.

Zopa employs a progress bar in its flow, providing clarity regarding your current stage and the remaining steps in the account creation process. This approach effectively reduces the cognitive load by breaking down the process into distinct, manageable steps.

The principle here is straightforward: less information results in a lighter cognitive burden, ultimately making the entire process more user-friendly.

Explain Why the Information Is Requested and How It Is Going to Be Used Later

Consumers today care about security and the amount of data they are required to share with a provider when completing an application. Offering a clear rationale for the necessity of specific information, whether it's an ID, phone number, or sensitive data like personal income, significantly enhances trust and transparency within the Starling Bank app.

Be Fun

According to the World Retail Banking Report 2022, 52% of bank clients surveyed say they are not getting fun from their bank provider. And this is exactly what can be learned from nice FinTech products. One of the nice examples is Plum who uses funny greetings when PIN is entered.

These are so-called delighters, small and playful things that make people remember the experience.

Utilize Visuals

It's a well-known fact that people process visual content more quickly than textual information. Visuals can help to clarify concepts that words may struggle to express. It's essential to keep in mind that when users arrive at a website or open an app, they typically don't immediately dive into reading; instead, they scan the content.

If a screen appears dull and overloaded with text, chances are the user will likely bounce.

Most of the fintech apps today use icons to make questions in the flow more digestible for the clients, and Starling Bank is not an exception.

Illustrations possess the dual advantage of being explanatory and attention-grabbing. Monzo makes great use of nice illustrations that are used all over the app to support the copies.

Simplify Data Entry

When going through onboarding with Plum, you can notice tiny but helpful details like pre-filling Nationality and Country of residence fields based on your location, which makes the whole journey a bit more pleasant.

For address entering, Plum (along with the rest apps reviewed) allows you to enter a postcode, and then search for the required address in the list of results, which again, makes you feel your time is respected and your job has been simplified.

Transform Complex Language

Plum simplifies legal and financial language to make it more understandable to a broader audience. The app offers such features as pockets to save money, maximizers to calculate your weekly and daily allowances based on your income and spending, and brain, which automates rules for setting money aside.

Except for providing the link to its Terms and Conditions (and we know a lot of people just miss them), Plum offers a digestible and human-readable summary of what is inside.

Provide Faster Options to Sign In

Monzo uses the magic link for logging in which removes the need to remember, manage, and enter a password, so the authentication process is made more straightforward and user-friendly.

Besides, magic links are time-sensitive and generated on-demand, so they offer a secure authentication method, while security is among the top things customers care about today.

Confirm and Allow to Edit

All of the financial providers in the UK use eIDV as a way to verify clients without the need to upload documents. That’s why it is important the client types their name correctly (as in their ID), specifies the correct home address, and does not make a mistake in their date of birth.

This is the case for Monzo who makes you check your age once again by saying “It makes you X years”, or for Starling who asks to confirm your personal details when provided.

Re-frame Information

The way you present information affects how users interpret and decide - this is known as the framing effect. The same facts presented in two different ways can result in different decisions from people.

To use Plum, in full you need to link your bank account, and before you do that, the app explains what you gain by doing that. Plum skilfully shapes the user experience around the fundamental value of its product, fostering enthusiasm to advance to the next step and link their account.

The dynamic landscape of FinTech user onboarding is set for transformation. In an era where user experience is paramount, the future of FinTech belongs to those who innovate, prioritize accessibility, and nurture trust. I truly hope this article has delivered valuable insights into the world of best practices.