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User experience (UX) today goes beyond a nice-looking interface or a conveniently usable application; it is about making data actionable, intuitive, and applicable in whatever interaction is made by the user. For financial institutions, providing a seamless and informative experience relies heavily on the quality of the data being used. Any imprecise or unclear transaction information from banking apps complicates the bank-customer relationship.

Let’s explore how data is used to craft compelling UX in banking and a surprising trend of digital-only neobanks embracing traditional physical channels.

Data Powers Personalisation

In banking, no two users are alike, which is why data is the foundation of modern banking experiences. It enables personalisation, drives innovation of many features, and empowers users to make informed financial decisions. Banks that successfully leverage data transform their apps from transactional tools into financial ecosystems that can do much more than just show the balance. Putting the user first is always a priority.  

Imagine opening your banking app to see a cryptic transaction labeled “2B PRIME OK8ST8II5” What would you do? Call customer support? Question the charge? Now imagine instead seeing “Starbucks” or “Amazon Prime” paired with a recognizable logo and a map showing the location. It’s a small change, but one that transforms confusion into clarity and mistrust into confidence.

Did you know?
‍According to Deloitte's report, banks that leverage personalised data experiences see a 30% increase in customer satisfaction compared to those that rely on generic features.

This is the power of data in action. Modern banks use data to create experiences that feel personal, trustworthy, and effortless. It’s not just about showing numbers; it’s about telling stories - stories of where you’ve been, how you’re spending, and how you can make smarter financial choices.

The Science Behind the Scenes

Every tap, transaction, and transfer generates data. Banks harness this information to tailor the experience to you. How exactly? Let’s check a few examples:  

• Spend a little too much on dining this month? Your app nudges you with a budgeting tip.
• A recurring charge from Netflix? It’s tagged and tracked automatically, helping you keep tabs on subscriptions.
• Concerned about sustainability? Some apps now calculate the carbon footprint of your purchases, giving eco-conscious users actionable insights.

For this, you need accurate and high-quality data. We are talking accuracy, clarity, completeness, and relevance. High-quality data means delivering accurate merchant names, logos, transaction categories, subscription details, and additional metadata like GPS location, merchant addresses, and even carbon footprint estimates. This enriched data provides users with meaningful insights, making financial management easier and more engaging. Take a look at the same notification presented by different banking apps. Can you spot the difference?  

Transaction data enhancement transforms raw data into a visually appealing and understandable format.

Curious about the 11 UX Laws in Digital Banking? Check out the previous article to learn more!

From Tools to Ecosystems

Banking apps have evolved from static tools into dynamic ecosystems. They don’t just show you your balance - they help you make sense of it. This shift has been driven by data’s ability to predict, recommend, and guide. This is why data enrichment is so vital to actually use this data the right way.

bunq: Personalisation and Purpose
Consider bunq as an example. This Dutch challenger bank leverages enhanced data not just to present your transactions, but to tailor them to your individual preferences and values. By automatically categorising spending, bunq enables customers to see exactly where their money goes - from groceries and entertainment to subscriptions - while offering features that align financial activity with personal ideals.

Through initiatives like the bunq Green Card, which supports environmental causes with every purchase, users gain insight into the impact of their spending decisions and can easily connect their financial habits to broader personal or environmental goals.

This data-driven, purpose-filled approach makes managing money feel intuitive, transparent, and deeply meaningful.

The most innovative banking apps are pushing boundaries. They use data to offer:

• ‍Real-time spending insights: Alerts for unusual transactions or predicted shortfalls.
• ‍Goal-oriented features: Wallets that let users lock funds for specific purposes, such as vacations or emergencies, earning interest along the way.
• ‍Hyperpersonalisation: Tailored product recommendations based on spending habits.

The Future of Banking is Hybrid

For years, neobanks like Monzo and Revolut operated in the digital environment, unburdened by the costs and constraints of physical infrastructure. As we learn more about data, we also realize it’s not about digitising everything. It’s about building a bridge. Even neobanks are now stepping into traditional banking domains.

Mortgages, traditionally the domain of legacy banks, are now being reimagined. Neobanks are using data to make the process faster and more transparent:

• Customers can prequalify instantly using credit history and income data.
• Apps provide calculators to compare repayment plans and real-time updates on application status.

As a matter of fact, N26 recently to offer a fully online mortgage solution, streamlining what has historically been a cumbersome process.

It doesn’t end with mortgages. Even in a digital world, cash remains relevant. Neobanks are acknowledging this by partnering with ATM networks, Monzo and provide free cash withdrawals via Allpoint, making cash access easier for their users, while Revolut is that can also dispense their debit cards.  

Looking for better personalisation for your clients?
Contact us and let’s dive in!

The lesson is clear: while data drives the innovation of digital banking, physical touchpoints remain vital for creating holistic experiences. Customers value the immediacy of a digital app, but they also appreciate the reassurance of a human connection when dealing with complex financial products. It’s about creating a seamless blend of both. Data will continue to power personalisation, guide user journeys, and enhance digital services. But just as importantly, strategic physical touchpoints will build trust, bridge gaps, and bring banking into the real world.