First Midwest Bank
A Better Online Payment Experience
Gregory Morris
Project Background
The First Midwest Bank manual payment process suffered from being inconsistent with customer expectations, confusing, and difficult if you were trying to use the app with a disability. Research showed customers preferred simple banking applications and that there is potentially measurable gain from being simpler as well.
Project Limitations
This project is limited to secondary data. I do not have access to First Midwest Bankβs internal data such as customer information, customer service call data, technical information, or any other internal data.
Due to this limitation, I have to assume the bank is consistent with market averages and technology norms.
This solution only affects customers that make manual payments, auto pay customers are unaffected.
This project will focus on the mobile app for presentation but the findings apply to the web payment process as well.
Full project breakdown here.
Section 1 Why it Matters
Section 2 Product Review
Section 3 Recommendation
Section 4 Summary
Why it Matters
Online Banking: A Basic Expectation
65% of the US population now uses online banking.
65.3%
2022
First Midwest Bank
First Midwest Bank recognizes the importance of the digital banking experience. Part of that experience is making online payments.
βOur clients are increasingly favoring a more digital banking experience, which has been amplified and accelerated due to the COVID-19 pandemic,β said Mark Sander, president and chief operating officer of the $21 billion First Midwest.
What Matters for Online Payments
According to the Consumer Billing Preference Survey, choosing to pay bills on a mobile device is all about:
Being Easy (43%)
Convenient (41%)
Saving Time (40%)
The Benefits of Simple
Simplicity builds loyalty: 76% of consumers were more likely to recommend a brand that delivers simple experiences.
Simplicity earns a premium: 57% of consumers say they would pay a premium for simpler interactions with brands.
Complexity costs: Brands that donβt provide simple experiences are leaving an estimated share of $406 billion on the table.
Target Market
Personas selected from the fastest growing digital banking groups ranging from 18 to 44. The 45 and up age groups are least likely to use digital banking. The concerns for the lack of digital banking in the latter groups go beyond the scope of this improvement.
Persona of a Banking Customer 1
Persona of a Banking Customer 2
Persona of a Banking Customer 3
Product Review
UX Cost-Benefit Analysis
The user experience has to survive a costβbenefit analysis:
Banking Simplicity
Source: The Financial Brand
Predictability: Should be consistent with user expectations.
Control: To many elements will prevent creating a clear mental model.
Ease: The user flow should be smooth and obvious.
The Principles of Simple Banking
Competitor: Palmetto Health Credit Union
Access
Review
Search
Payment
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This mostly follows the Principles of Simple Banking but notice how searching increases customer friction by reducing predictability and ability to create a mental model.
Competitor: Bank of America
Bank of America best follows the Principles of Simple Banking. The payment location is intuitive and easy to access.
Access
Review
Scroll
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Payment
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First Midwest Bank: Steps to Make a Payment
Up to 8 steps must be completed before a user can get to the payment step
Access
Review
Search
Launch
Access 2
OTP 1
OTP 2
User Journey
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βΉοΈ
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Payment
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Two Separate Login Processes
Each with its own login and password
1st Process allows fingerprint scanner
2nd process uses OTP
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Potential Reasoning of Current Process
Failure to Deliver in Online Payments
Recommendation
Company Alignment
Goal:
Improve digital banking experience for fast growing segment.
Success Metrics:
User Story
As a busy professional, I want it to be consistent with expectations and quick, so that I can focus on other things.
As a user with disabilities, I want it to be easy to use, so that I can make payments from home.
Solution 1
Payment link added to the large plus button in the bottom middle of the screen.
Access
Review
Search
This is an improvement over being in the βMoreβ menu item as the larger button is a natural call to action and allows the customer to build a clear mental model.
Solution 1 Prioritization
This solution would benefit new users that make manual payments, and add some initial friction to existing users. An alert or indicator of the change would ease existing customer transition.
Technical Concerns:
1. The Menu link would have to be moved and consideration for UI effect of having an additional item in the plus menu considered.
2. Potential negative effects could negate this solution.
Solution 2
Authentication credentials passed to the payment center.
This would reduce customer friction to accessing payments. This could be done in addition to solution 1 or on itβs own.
Search
Payment
Solution 2 Prioritization
This solution would benefit all customers that make manual payments. This would reduce time on task for making payments.
Technical Concerns:
1. This assumes that the authentication in the primary app meets banking regulations and requirements when it comes to payments.
2. Work effort would be dependent on if both apps are able to authenticate with compatible systems.
Solution 3
The new process adds the βMake a Paymentβ button in the account detail (when the account is selected).
This is most consistent with the Principles of Simple Banking.
Solution 3 Prioritization
This solution would benefit all customers that make manual payments and best meet the Principles of Simple Banking.
Technical Concerns:
1. Does the main app meet bank regulations and requirements for payments?
2. Would payments have to be built from scratch or could it link to the payment center?
3. UI effects for adding the payment button and potentially a new payment system.
Summary
Summary
1. Simplicity builds brand loyalty and earns a premium.
2. Digital banking customers prefer apps that are easy, convenient, and save time.
3. Principles of Simple Banking: Consistent with user expectations; easy mental model; low friction user flow.
4. Key metrics to consider:
Thank You
About Me
My name is Gregory Morris and I am a product professional. This is a work of love for a product I use. I appreciate First Midwest Bank, but I feel that the payment process could be better. Thank you for your time.