Why apply design thinking in Fintech?
Design thinking is a problem-solving process that has been used in the design industry for decades. But it is also a great way to innovate and grow business that can be applied (and should be applied) in all fields, especially in Fintech industry.
16 February, 2022
Design thinking is a problem-solving process that has been used in the design industry for decades. But it is also a great way to innovate and grow business that can be applied (and should be applied) in all fields, especially in Fintech industry. Let's look at what design thinking is all about, why it's important to businesses nowadays, and how you can incorporate it into your Fintech company or startup.
What is design thinking in Fintech?
Design thinking is a process for innovation in which you think about what people need in order to be successful and work backward from there. At its core, design thinking is about human-centered design—making products that are useful and usable by incorporating insights into how people live their lives. It's a way of approaching a problem with an open mind, figuring out the best solution possible, and then implementing it. It is a strategy used to "design" anything from an idea or product to a service. Design thinkers try to understand what they need, want, and value by using empathy to put themselves in their customers' shoes.
Design thinking is not just for designers. It has been utilized successfully in many industries, and it's beneficial for Fintech companies and startups because of their rapid pace of innovation and need for solving problems fast. Truly understanding the user's perspective is imperative to designing successful Fintech products. This is where design thinking comes into play.
What are the steps of the design thinking process?
The design thinking in Fintech includes five steps: empathize with the audience for the product or service; define what you are trying to accomplish; generate many ideas; pick the best one (ideate); refine it further (prototype); evaluate which solution best solves the problem (test).
Empathize with your audience
Design thinking starts with empathy - building up understanding through observation or discussion with customers or end-users about their goals, motivations for the product or service they are looking for. This means understanding their needs and desires as well as their frustrations and fears. This step also includes identifying unmet needs and gaps in service or products. For example, if you're trying to figure out how to improve the trading experience, observe people trading! You'll learn about their likes and pain points.
Define the problem
The second stage is defining; this is where you clarify what exactly it is that you're trying to solve and what you want your result to be like, based on customer insights from the empathize phase. What are the opportunities? What are the challenges? Who do you want to reach? How might they behave differently than your current customers? It will help you identify possible solutions during ideation.
Ideate solutions
Stage three in the process is ideation, where ideas are generated by brainstorming or other techniques such as interviewing experts or researching existing solutions. Generate as many solutions as possible without censoring your thoughts or being too critical of each idea. You want to think about as many solutions as possible because there's no way of knowing which idea will work best.
Prototype potential solutions
After generating ideas, it is time to prototype these ideas that can be tested with real people who have the problem or want the solution. The prototype can be anything from a sketch on paper to a digital simulation. Prototypes allow people to try out the idea and see if it solves their problem before making major investments in time or money. For example, an organization might produce prototypes for several banking app designs then create market research surveys to gather feedback from customers on which they prefer. This process has helped many businesses succeed by giving them valuable insights into their customers' needs and preferences while also saving time and money on unneeded research and development.
Test
Then you test out your prototypes with these real people, getting feedback on what works and what doesn't work so you can iterate on your design until it solves their problem. Remember that it's always better to have more people giving feedback than less because different perspectives will help you find flaws in your product that might not have been noticed before.
How can your Fintech startup benefit from design thinking?
Design thinking can help your business by encouraging creativity, allowing you to find new solutions from unexpected places, and developing new products. With the help of design thinking, you can create a better future for yourself and your company. It can also help you identify new Fintech opportunities that would otherwise be overlooked. It helps you build empathy with your customers and generate innovative solutions for their needs.
So it can be a powerful tool to help your startup succeed. Here are some reasons why:
- Design thinking is about solving problems by working together and includes everyone in the process.
- It's about finding solutions that work for people, not just products or companies.
- It's an iterative process that starts with insights and then generates new ideas that can be tested with feedback from real users.
- Design thinking is a way of thinking and problem-solving, not a set of tools or methodologies.
- It can help your business innovate by developing new products or services.
- It is an effective way of brainstorming solutions that will work better than what you currently have.
It can be challenging to use design thinking when you're just starting because it's hard to know what the problem is you're trying to solve. Once you have more experience, or if your startup already has traction, then this process might work better for you.
Wrapping up
Design thinking is not linear; it's more like an art form where you allow your intuition and creativity to guide you through the process. This approach often leads to breakthrough ideas because it gets away from the one-size-fits-all mentality, which can stifle creativity and innovation. Design thinking is an essential skill for designers and for all professionals, including Fintech professionals who want to get the best outcomes from their work. If you wish to increase customer satisfaction or find a solution for your Fintech challenges - design thinking will help you come up with innovative ideas.
