One recent trend that I have noticed, is the increasing use of Nudges in fintech & digital solutions. Nudges are very powerful, as they subtly guide users and prompt them towards action / transaction. They can also be used smartly to guide users through
a journey / flow, making it less frictionless and error free.
Nudges need to be contextual w.r.t User’s Journey at a given point in time. We also need to ensure that Nudges are not annoying. So, Nudges involve a lot of data & analytics, and can also use AI / ML, to make out the context, and be effective.
So, be it a Banking Application (App), Payment App, Investment App, Trading App, Lending App, Insurance App, Wallets, Digital Marketplaces, Ecommerce platforms etc.. All can benefit from the power of Nudges. Let us therefore look at some interesting use
cases / applications of Nudges across various Fintech & Digital Apps.
a. Nudges can be used during onboarding or any other process, to guide users towards completion and error free data input. This will improve not only user engagement, but also ensure less dropouts and rejections of applications.
b. We can use Nudges to prompt users to explore a particular feature, tool or content, which will benefit them. Say, prompting users to check out the Loan eligibility calculator while applying for a loan.
c. Nudges can be used for highlighting call to action. i.e. prompting users for transactions. For e.g. Bill Pay, Trading based on a particular price.
d. They can be used to prompt users to automate regularly used actions. For e.g. auto payment of regular bills
e. In research and advisory or content led interventions, nudges can direct users towards relevant content which offers them actionable insights. For e.g. If research has advised a stock for sale and it is part of the user’s portfolio. Users can be
Nudged to act on it through some UI & UX based intervention.
f. Nudges can be used for cross sell, upsell during a user journey. For e.g. Prompting users to buy Insurance while booking travel tickets.
g. Use of nudges towards changing habits, disciplined and prompt action can also be done. For e.g. if users loyalty points are expiring, then it can be highlighted for action as users login.
In a way, Nudges are a smarter and contextual version of User Alerts & Notifications, and they are also based on user behaviour / actions. Besides the context driven by Data, Analytics, AI & ML, an effective use of UI & UX measures can make Nudges more effective.
Another way to differentiate a Nudge is that it is more driven towards effective and better user action than just information, which is what alerts and notifications do.
Eventually Nudges are part of various user journeys, as we have seen above. So, it is important to craft engaging and contextual user journeys, using digital capabilities based on products and solutions being offered, users profile, behaviour and needs.
This is what is also emphasized in the innovation’s framework called 3F: Future Fintech Framework.
Trust this Nudges you to effectively explore the framework, and look forward to hear your experience / insight on the power of Nudges.
Wishing you all Merry Christmas and year end celebrations.
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