Financial Management & Digital Banking: A New Proposition (Part 5)

Business Model, Marketing Strategy, UI UX

Previous chapter: Part 4: Product-Market Fit Strategy

The business model will be based on freemium model. This means that we position our product as a one-stop digital banking and financial management application that users can test for free (provide them with the basic bundle). The free, basic bundle will be selling Financial Management Application which offers basic services such as:

Why freemium and bundling?

As shown in the previous research, the switching cost / acquisition cost of banking customer is high. Even for millennials, they still place high levels of trust to established major banks to fulfil their financial service and needs. This is especially true for opening checking, savings and deposit accounts.

To mitigate these costs, we will try a combination of freemium model and bundling that can lesser the pain/risk of purchase and to change the perceived value of the products. These advantages are proven from different researches (banking cross-selling strategy here, and marketing strategies research by different authors here, here, and here):

Bundling can serve to reduce the “pain of paying” because it makes it harder for consumers to know what the “right” price is for the products. And it is helpful in encouraging customers to sample new or less popular products by making them part of a bundle.

Creating attractive bundles can also increase the average sale amount, as well as increasing the perceived value of the product. However, this must be done carefully especially when we mix differently priced products, because we may run the risk of devaluing the whole package (because customers tend to think in categorical comparison when comparing different products based on price alone).

That’s why instead of focusing the price or value of the product, focus on non-price attributes of the product (e.g., durability or comfort) — researchers say this will reduce the devaluation effect from mixed-value items.

So, by using these models, we get the benefit of:

The Products and Service We Sell

The Products Strategy

Product Concept

As it will be a very long and time-consuming process to complete all three products, this time I’ll be focusing on the first product only: Financial Management App (FMA). But due to time constraint, I will only try to flesh out:

to give some ideas how my mind imagines what this product will be realised in real life.

Basic concept model for FMA

This is the concept model that shows the structure and connection of each feature. I used this to map out how the feature will be structured. Basically, the app will have four major features:

Onboarding

On-boarding for new users: filling personal data, and setting up the spending tracking configuration and notification

This is the general flow of the onboarding process. I divided it to three parts:

Dashboard

Main Dashboard

The dashboard is presented just like a game dashboard where users can see their achievement and progress of their current goals, as well as other goals and products that they haven’t tried out yet.

This is done purposefully and consciously to evoke the nature and sense of a game (gamification), to make users feel that the process and activities of financial management itself (spending tracking, budgeting, saving, etc) are something that they can take delight in. The activity should feel like it’s something that not only important, but also enjoyable and something that they can look forward to.

Budgeting Goal

Budgeting: Setting goal and limit for each category

As seen above, to persuade user into doing something that maybe unfamiliar for them (in this case, creating a budgeting goal), we need to remove the hurdles and make it engaging:

Budgeting: Simulating the spending limit and cut
When user adds their spending entry, they will get message that reminds them on their budget goal/limit (whether it exceeds or below the budget limit)

Spending Tracking & Financial Wellness

Financial Management (Spending Tracking + Wellness Report)

As mentioned previously, users can access Pencatatan to add transaction entries and monitor their financial health report. The financial report does not only shows their current state of their balance and cash flow, but it also compares them with their previous financial condition to give them a better picture of their progression:

This comparison serves not only as a factual information, but also to prompt user to keep the positive behavior (less spending) and to cut out the negative ones (cut the increasing spending on some categories).

Furthermore, the more information we gather, the more detailed and insightful advices that we can provide to users. In this case, a simple example is showing that compared to their average spending, this month is spending is up by 50% in grocery shopping category.

For a more detailed insight and personalized advice, we will tell them that it is available in premium products (when users upgrade by opening Senyumku or Senyumku Deposito account), thus increasing users’ willingness to try other products.

Social Feed

Social Feed: Internal content (categorical sections), User-generated content (community), and Leaderboard

This is the basic visualization of the social feed: a menu that serves as a platform where users can consume educational yet interesting bite-sized financial and lifestyle contents. The news feed functions as an entertainment that doubles as a form of user engagement and company branding, as well to create a community around the product:

Well, that’s all for now. All in all, this is a very interesting product concept that I want to explore and flesh out further. What will be more challenging is the integration and upgrade mechanism to the premium product: Senyumku account and Senyumku Deposito. What will the product and its feature (the architecture, information structure, branding, etc) look like?

It will be a challenging yet engrossing endeavour for sure. However, due to time constraint (for the design challenge) right now, this will be the ending point of my current exploration. Anyway, thank you for your interest and time. Any advice and feedback will be greatly appreciated!