UX as a Fintech super power

It's been quiet on the newsletter front for six months, and I have a couple of good reasons: I've been busy with client projects, and we welcomed our third baby girl this spring—so it's been a whirlwind!

As we prepare for a busy autumn with more frequent newsletters, we'll keep this first newsletter short, light and engaging:

Welcome back!

If you thought it was brutal returning from vacation, I can assure you it is even more brutal for analysts working at Goldman Sachs. According to a recent survey amongst 13 first-year analysts, they worked over 95 hours per week and slept on average 5 hours per night. The best quote is: «I’ve been through foster care, and this is arguably worse». Well, at least it’s for a good cause. 😆

While some finance professionals are working themselves to the bone, others are focusing on making financial services more user-friendly:

UX isn't given enough credit as a Fintech Superpower

I nearly tore a muscle in my neck from nodding so vigorously while reading this article by Simon Taylor about how crucial user experience is in fintech. He shares that while many tech teams want to create a smooth, "frictionless" experience, they quickly realize that the finance world is really complicated, with lots of tricky edge cases to consider.

For example, making a simple loan application involves navigating a ton of regulations and ensuring data accuracy. Traditional banks often miss the mark on UX, thinking it’s just about looks, which gives fintech companies a big opportunity to step in and disrupt the market with better experiences.

A great example of this was how the incumbent banks in Norway didn’t want to use Vipps initially and implemented their own form of peer-to-peer payment, thinking it was just to connect a phone number to an account number, but that is wasn’t as easy.

Simon Taylor highlights some cool examples of great UX, like Shopify Pay’s easy checkout process, Monzo’s fraud prevention tools, and Ramp’s clever expense management features. These companies focus on solving real problems for users, which makes a huge difference.

As fintech companies continue to innovate in user experience, another technological wave is poised to reshape the industry even further.

The AI Revolution in Banking

Ever thought about how terrible humans are at optimizing their finances? Matt Harris from Bain Capital lays it out in this compelling talk about how generative AI could flip the banking industry on its head. Picture this: AI agents doing all the heavy lifting, ensuring your money works for you. But banks won’t probably be in the driving seats as they no longer can profit off consumer laziness because AI has taken over financial optimization. See the full video here.

Speaking of AI implementations: Ben Thompson analyzes the diverse AI strategies of major tech companies, ranging from vertical integration to full modularity. It's notable how each company is taking a unique approach.

Disdain for the AI hype

However, not everyone is jumping on the AI bandwagon with unbridled enthusiasm. In fact, some are reaching their limit with the hype. In this hilariously over-the-top rant, Nikhil Suresh expresses his absolute disdain for the AI hype train, promising to deliver a "chiropractic adjustment" to anyone who brings up AI without a solid plan. He argues that while AI has potential, most companies are just grasping at straws and failing to manage basic tasks—so instead of blindly chasing the latest tech buzz, maybe they should just fix their existing problems first!