A case study about
Simplifying personal finance
5 minute read
Stakeholder involvement
Workshop facilitation
User research & testing
Interactive prototyping
1. Desk research, user interviews and expert validation
Understanding the problem space
With such an open task, and without any domain knowledge, we chose to approach this as an exploratory project. Our primary focus was on preparation and ideation, exploring the problem space to identify opportunities.
Initial desk research allowed us to quickly latch on to current narratives and discussions within the cutting edge of consumer-facing financial products and services. We then spent time with consumer and market reports individually, and later reconvened to discuss our readings as a group.
Our discussions narrowed our search as we became increasingly interested in financial literacy and mobile banking. We wondered, in the light of new breakthroughs in AI, if there had emerged new possibilities to improve the experience of seeking financial guidance.
Based on Cicero's 2021 report on mobile banking usage, we noted that young adults spend more time on mobile banking apps, and are most likely to adopt new features. This informed our decision to target this demographic for user interviews and further desk research.
Domain knowledge
To navigate the complexity of the field, we regularly validated and iterated our understanding based on input from a selection of legal experts, economists, and fintech developers we could get a hold of. This ensured that ideation was grounded in reality while maintaining a valuable outsider perspective.
The research phase revealed three key insights that reinforced the value of exploring this problem space.
The journey map details all the paths a user might take towards better financial control and literacy. Through user observation and interviews, we found that this journey is often:
Tedious, because of waiting times at the bank, and poor alternatives like wading through tips and tricks online.
Highly dependent on personal motivation and interest, largely because of the tedium.
Even certified advice was associated with a sense of uncertainty. We picked up on mistrust directed towards in-house financial advisors because their affiliations keep them from being neutral.
Through competitor analysis, we noted that while standalone apps like Horde address certain financial pain points, only one Norwegian bank had integrated similar solutions into their own platforms. This surprised us, as reports on mobile bank usage revealed that users have a preference for centralized solutions to administer their finances (Nybakk 2021). The space for increasing the supply of tailored financial advice seems ripe for solutions, something echoed by several of the experts we interviewed.
Users we interviewed reported becoming paralyzed by too much choice. Especially when dealing with finances, which is an inherently technical aspect of people’s lives. People want seamless and tailored experiences free from irrelevant noise. What matters most is a simpler life: fewer distractions, and more time for what truly matters (Wiksnes, 2022).
In addition to choice, however, they crave financial literacy. While it already is generally high in Norway, there exists a strong desire for better understanding of economics across all levels of literacy (Intrum 2021).
We critically assessed the feasibility of incorporating personalized AI based on aggregate data into mobile banking. We mapped existing solutions and identified potential hurdles, particularly around legal compliance and data misuse. To address these concerns, we took the following steps:
Interviewed four experts in finance, technology, and AI law, who provided insights into the legal and technical challenges of implementing machine-learning solutions.
Conducted additional research to understand how to build user trust and ensure compliance with GDPR.
These efforts confirmed that while AI-driven guidance is technically feasible, it requires careful design to navigate issues like transparency, consent, and data security. However there are examples of products in the same problem space (Horde, S’Banken) that are legal and trusted.
People don’t concern themselves with the rise of unfamiliar technology, as long as its development keeps their interests at heart. A user-friendly experience trumped all or most other factors among 95% of users.
3. Solution
Solution
Using our findings as guidelines, we ideated on the different ways to automate processes relating to personal finance in order to empower users.
I led workshops where we used various ideation techniques to generate numerous ideas, and selected the most interesting ones using voting dots.
To ensure we were on the same page as a team, we then storyboarded some potential use cases individually and discussed each other’s visions. We then developed a storyboard together to reach a common ground to work from.
We came up with four features. In a mobile banking app, all of these would present as options to either set up or leave off, each with their own setup, one of which we prototyped and tested.
Spending Comparison
Objective: Leverage social comparison to encourage better spending habits.
Mechanism: Users receive insights on how their spending compares to others. Spending above the average triggers nudges toward moderation, while spending below average reinforces a sense of resourcefulness.
Impact: Creates awareness of spending patterns and motivates behavior change through social norms
Impulse Delay
Objective: Reduce impulsive spending.
Mechanism: Users can set up “blocks” to their own ability to purchase from specific vendors. Adds friction to making excessive purchases.
Impact: Helps users make more deliberate spending decisions.
Cheaper Reccomendations
Objective: Promote cost-effective alternatives to habitual purchases.
Mechanism: Already knowing your spending power, and if given access to receipts, the app can offer context-sensitive notifications to suggest cheaper but equivalent products to those you normally get.
Impact: Encourages financial efficiency and habit awareness.
Budgeting and Automatic Allocation
Objective: Simplify budgeting and encourage disciplined spending.
Mechanism: Analyzes spending to propose a categorized budget. Once the allocated amount for a category is spent, further spending in that category is restricted (with exceptions for critical expenses).
Impact: Empowers users to maintain financial control and develop long-term budgeting habits with little effort.
Learnings and acknowledgements
Learnings and acknowledgements
Challenging mental models
One of the biggest learnings was the success of interlocking events and chats. Initially, this decision seemed risky due to its novelty, but after testing, users had an “aha moment” that made the experience intuitive and engaging. This was a reminder that innovative design often requires cognitive effort, but if it’s learnable, it can create impactful moments.
Designing with Empathy
This project reinforced the importance of designing for real user needs, especially those who are weary of social media. The emphasis on clarity and user control was key to alleviating frustration. A user-first mindset is paramount to creating solutions that feel both fresh and familiar.
Thank you to Trond Klevgaard for guidance, and of course a special thanks to the participants who provided candid, thoughtful feedback. Your input was crucial to the success of this project.
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