Over last years’ competition in the financial industry intensified as never before. Big banks, insurance, wealth management companies, and traditional lenders are challenged by new Fintech companies. Revolut, Monza, N26, Neo Financial, NU bank, Monobank, Wealthsimple, Koho and many others are pushing the boundaries of customer experience.
According to Marqeta 2024 State of Payments Report, 63% of U.S. customers aged 18-34 are ready to use financial services from non-traditional providers due to convenience and ease of use. This shows a huge potential for innovative user-centric financial apps.
But here’s the catch: when usability falls short in fintech, the consequences hit hard.
According to Signicat research, 68% of customers will abandon a transaction if they encounter usability issues, while 88% are less likely to return to a platform after a negative user experience.
So, how do you get it right? It all starts with usability testing.
The type of usability testing you need usually depends on the type of information you’re looking to gather. This article breaks down the types of usability testing and essential usability testing methods for financial products – explore how they are conducted, insights they help collect, and how to pick the right one for your business case.
What is Usability Testing?
At Craft Innovations, we define:
“Usability testing as a research process where you observe real users interacting with your product to understand how they actually use it – not how you think they should use it.”
The goals of usability testing vary by study, but they usually include:
- Identifying problems in the design of a product or service
- Uncovering opportunities for improvement
- Understanding the target user’s behavior and preferences
During a usability testing session, a researcher (also known as a ‘facilitator’ or ‘moderator’) asks a participant to complete specific tasks using either a low- or high-fidelity prototype, or the product itself. While the participant works through each task, the researcher observes their behavior, asks questions and listens to their feedback.
Typical tasks you might test in different fintech areas (including but not limited to mobile banking, web platforms, trading platforms, or corporate websites):
- Onboarding and account opening
- KYC (Know Your Customer) processes
- P2P (Peer-to-Peer) and wire transfers
- Investment portfolio management, incl. buying and selling assets
- Loyalty and rewards program engagement and utilization
- Mortgage and loan applications and management
- PFM (Personal Finance Management) tools and features
…and many other user scenarios for retail and business customers.
Even with the most skilled UX designers, you can never be 100% certain what will work best for your users. The only way to get UX design right is to test it.
Types of Usability Testing
Before diving into more financial scenarios, let’s go over the types of usability testing and explore what usability testing methods fall into each group. They can be categories based on how tests are conducted and the user experience insights they provide. Knowing these helps you pick the best fit for your product, based on your resources and goals.
1. Remote vs. In-Person
Usability testing can happen remotely or in-person, depending on convenience and the type of data needed. Some of the usability testing methods include:
- Lab Usability Testing involves users testing a product in a controlled environment while a facilitator observes and guides the process.
- Guerrilla Testing takes place in informal, public settings, where users provide quick feedback on a product.
- 5-Second Test asks users to view a screen for 5 seconds and share what they recall, helping evaluate clarity and focus.
- Screen Recording captures user interactions on their devices to analyze behaviors and identify usability problems.
- Eye-Tracking uses special software/technology to follow users’ gaze, highlighting what grabs their attention first on a screen.
- Observation lets researchers silently watch users complete tasks, noting pain points or confusion in real time.
- Session Replays are recordings of user sessions, offering a detailed look at navigation paths and actions.
- Interviews involve direct conversations with users to understand their experiences and challenges.
2. Moderated vs. Unmoderated
There are types of usability testing that can be guided by a facilitator (moderated) or conducted independently by users (unmoderated). The following methods can be used both ways:
- Lab Usability Testing is a moderated usability testing method where users complete tasks with guidance from a facilitator in a controlled setting.
- Guerrilla Testing can be moderated if a researcher engages users with specific questions or unmoderated if users test the product independently.
- Card Sorting helps organize content. Moderated sessions include guidance from a facilitator, while unmoderated sessions let users complete the task on their own.
- Screen Recording is an unmoderated method where users interact with the product freely, and their sessions are recorded for later analysis.
- 5-Second Test is unmoderated, allowing users to independently evaluate a screen’s clarity and focus within a few seconds.
3. Qualitative vs. Quantitative
Usability testing can explore subjective user experiences (qualitative) or measurable performance (quantitative), and SUM (combining both mentioned).
- Qualitative methods include usability sessions, moderated or unmoderated interviews, and open-ended observations etc. These approaches focus on understanding user behavior, motivations, and preferences.
- Quantitative methods emphasize metrics like task completion rates, time on task, error rates, and structured surveys or questionnaires, such as the SUS (System Usability Scale). These methods help gather measurable data for analysis.
- Single Usability Metric (SUM) combines qualitative and quantitative data to provide a balanced view of usability.
At Craft Innovation, we use SUM extensively to blend user feedback with measurable insights for comprehensive evaluations of user experience in fintech apps. This approach is valuable because SUM combines multiple usability factors – such as task success, time on task, and error rates – into a single score. This makes it easier to track overall usability trends, compare designs, and present clear data to stakeholders. It captures both qualitative feedback from users and quantitative performance metrics for data-driven decisions and user-centric designs.
4. Explorative vs. Comparative
These usability testing types evaluate new ideas or compare existing options to find the best approach.
Explorative Methods uncovers user preferences and expectations, it includes:
- Moderated Card Sorting users group and label content items under a facilitator’s guidance to reveal logical structures and user expectations.
- Guerrilla Testing conducted in casual settings to gather quick insights into user behavior and pain points.
- Lab Usability Testing has a controlled testing environment where users perform tasks while being observed for in-depth feedback.
Comparative Methods are used to compare designs and pinpoint the most effective one.
- A/B Testing compares two versions of a design to identify which performs better based on user behavior and metrics.
- First-Click Testing evaluates where users click first to determine if navigation and calls-to-action are intuitive.
- 5-Second Testing measures user impressions and recall by showing a design for 5 seconds and gathering immediate feedback.
5. Website vs. Mobile + Specialized
Testing differs based on the platform or device. Financial products may also require testing for specialized interfaces.
- Web usability testing evaluates how users interact with a website on different browsers to ensure ease of navigation and task completion.
- Mobile usability testing assesses the usability of mobile apps across devices, focusing on responsiveness, touch interactions, and user experience.
- Specialized Interfaces include unique platforms like financial ATMs, appointment scheduling systems in bank branches, or trading terminals used in financial institutions.
Best Usability Testing Methods for Fintech Products
We’ve finally arrived at the heart of the matter – What usability testing methods should you choose for fintech products?
If you’re not a UX expert, deciding on the right type of usability testing is indeed challenging. Should you run an in-person moderated test for your platform, or would a remote unmoderated test suffice? What if you’re still testing a concept or early-stage idea?
The disappointing truth is, there’s no silver bullet.
It all comes down to what research objectives and resources you have and who you’re targeting. Experience plays a huge role, as does understanding different use cases to decide what usability testing methods will deliver the insights you need.
But here’s the good news: We’ve taken the most common UX headaches and research goals product managers face when building financial platforms and mapped them to testing methods that fit the best fintech products.
If you want to know…
Clients/user typology or behavior reasons
- Who are our users, and how do they interact with our online banking platform?
- Why do users prefer our app over competitors’ products?
- What challenges do users face when completing basic mobile banking tasks?
- How secure do users feel when using the app for transactions?
- How often do users rely on advanced features like investment tracking or savings goals?
Moderated usability testing is effective for user typology, as researchers can observe user behavior while asking follow-up questions to uncover motivations and frustrations. User interviews also work well to gather qualitative feedback about user preferences and habits. Screen recordings and session replays can complement this, providing detailed visuals of user navigation patterns.
Consumption situation
- Do users log into the banking app during work hours or weekends?
- How do users interact with ATMs or in-branch scheduling systems?
- Are asset management dashboards accessed more on tablets or desktops?
- How does device usage vary between mobile banking and crypto platforms?
- What environmental factors (noise, distractions) impact app usability?
Remote unmoderated usability testing methods work best for consumption situation analysis, using screen recordings or session replays to observe how users interact in real-life scenarios. Eye-tracking can provide additional insights into which elements capture attention in specific contexts, like Mobile, Desktop, ATMs.
User experience
- How easy is it for users to navigate the app?
- How intuitive is the menu structure?
- How do users navigate the payment or money transfer process?
- At what points do users abandon transactions, and why?
- Are there any pain points in completing a loan application?
- What feedback do users have about our notifications system?
- Does the app provide a seamless experience across devices?
Task-based usability testing identifies bottlenecks in key processes like navigation or loan applications. In combination with screen recordings, these usability testing methods let you pinpoint exactly where users struggle and how to improve their experience.
Insights & Needs
- What features or services do users expect from our app?
- What challenges do users face when using financial planning tools?
- Are there specific pain points in the investment or savings process?
- How do users prefer to receive updates or alerts?
- What advanced features would users like to see in future releases?
Explorative type of usability testing is best in this case. Techniques like moderated card sorting help you identify user needs and prioritize features they value the most. This method is especially useful for early product development or feature ideation. Pair this with focus groups to gather qualitative feedback on potential new features.
Willingness to pay for a product or a service
- Would users pay extra for advanced analytics or investment tools?
- What pricing tiers resonate most with users?
- How much do users value premium features like personalized support?
- Does a free trial increase conversion rates for paid plans?
- Are users willing to pay for subscription models in digital banking apps?
For evaluating pricing strategies, usability sessions – moderated or unmoderated – are effective. To get the most accurate results, consider SUM – combined quantitative and qualitative metrics
Quantitative methods, like surveys, help identify which features users value most and are willing to pay for. Qualitative approaches, such as focus groups, gather qualitative feedback on users’ perceptions of pricing fairness, the appeal of premium features, and potential trade-offs.
Position on the market, competitors
- How does our app’s design compare to competitors’?
- What features do competitors offer that we don’t?
- Is our navigation smoother than other fintech platforms?
- How do users rate our app’s performance compared to alternatives?
- Are there any features we should replicate or improve upon?
Comparative methods are ideal for benchmarking. For example, journey mapping combined with task-based usability testing helps assess how efficiently users complete tasks compared to competitors’ solutions. SUS (System Usability Scale) surveys can measure satisfaction with the overall user experience and highlight where your product excels or lags behind.
How ad content influences customers
To set the tone for a user journey, it’s essential to evaluate not only how users interact with your product but also how they engage with the elements leading them to it. Ads, banners, and promo materials shape first impressions as key touchpoints for potential customers.
- Does our onboarding ad campaign drive users to download the app?
- Are promotional videos for our crypto wallet clear and engaging?
- What first impressions do users have of our homepage banner?
- How well do users recall key messages from our ad campaigns?
- Do users find our ad content trustworthy and relevant?
Task-based usability tests (ad testing), 5-second tests and click tracking are effective for evaluating ad content. They reveal what users notice first and whether your messaging aligns with their expectations, measure user engagement with specific promotional elements.
Idea perception
- Would users actively redeem loyalty points rewards through the app?
- Is a one-click crypto swap feature intuitive and reliable?
- How do users perceive the value of new financial planning tools?
- Does the design effectively communicate the benefits of a proposed feature?
- Are users willing to adopt innovative tools like AI-driven financial advice?
Explorative usability testing using prototypes allows you to test concepts early. Combine this with moderated interviews to understand user reactions and refine the idea further.
Cheat Sheet “Usability Testing Methods for Fintech”
Earlier, we explored common usability scenarios in fintech. Now, let’s make it a bit more visual. We’ve prepared a handy cheat sheet that aligns 20 fintech-specific use cases with the most effective usability testing methods.
With this cheat sheet, you’ll be able to:
- Define clear research objectives
- Quickly pinpoint the right usability testing method
- Gather actionable insights tailored to your needs
- Balance your resources and goals effectively
* Optional – methods can be applied in specific use cases or as a complimentary part of another method.
When to Conduct Usability Testing for Fintech Products
Many product and business owners might think usability testing is only for existing products – but it’s definitely not. Early testing allows you to avoid problems, improve key metrics, and A/B test ideas before committing resources.
There are 4 main stages in a financial product life cycle where usability testing can play a pivotal role.
1. Before Design: Research & Analysis
Smart teams dig deep before they design products that compel users.
For a completely new product, early testing helps you validate your initial concepts and dodge costly mistakes. Want to know if your crypto wallet concept makes sense? Or if your investment dashboard speaks your users’ language? Usability tests like user interviews, moderated card sorting, and explorative usability testing can help identify user expectations, feature priorities, and potential challenges. This approach reduces the risk of designing features that users don’t value and sets a clear direction for development.
Redesigning an existing product is an opportunity to improve on what already works and fix what doesn’t. This stage helps build a solid foundation by mapping current UX, user struggles and backing design decisions with real data. Whether you’re tracking abandoned crypto transactions or studying how users handle investment tools, early usability testing methods reveal critical insights that shape your roadmap.
2. Prototype Testing: Validate & Iterate
Prototype testing acts as your financial product’s safety net. By testing designs from rough concepts to polished interfaces, you catch major issues before they hit production. This phase lets you experiment with different approaches to complex features like fraud alerts or investment portfolios and what is most important – keep development costs in check.
Use cases:
- Digital bank testing new money transfer interface variations
- Trading app validating portfolio visualization designs
- Insurance app testing claim submission flows
- Budget app checking user comprehension of financial charts
- Credit union testing wireframes & task flows for onboarding and fund transfers
- Insurtech company identifying pain points in prototype workflows for claims submissions
- Crypto exchange testing wallet connection flows to pinpoint drop-off issues
3. Pre-Launch: Final Validation
Think of pre-launch testing as your fintech product’s dress rehearsal with a high-fidelity prototype that accurately reflects the final design of your product. This critical phase ensures all components work together smoothly before facing real users and their real money. It’s your last chance to catch issues that could damage user trust or trigger compliance problems.
Use cases:
- Mobile bank testing complete account opening journey
- Investment platform validating trading system stability
- Payment app verifying multi-currency transfers
- Lending platform testing loan application process
- Crypto platform testing complete trading experience
4. Post-Launch: Monitor & Optimize
Financial products aren’t “set it and forget it” – they need constant optimization and usability audits. Post-launch testing helps you stay competitive by tracking how users adopt new features and spotting emerging pain points. It’s your radar for detecting issues before they impact your bottom line.
Use cases:
- Digital bank testing new security feature adoption
- Trading platform monitoring new analytics tools usage
- Payment app analyzing user behavior changes
- Wealth management app testing portfolio rebalancing features
- Crypto exchange validating new token listing interfaces
Wrapping Up
We’ve categorized the types of usability testing and endless usability testing methods for each product development stage. As has been said – there’s no silver bullet, and the wide choice of usability testing methods might leave you struggling with the right pick.
But here’s the thing: it’s totally okay to ask for help. A fresh perspective can make all the difference in finding the right approach. Sometimes you need one more pair of eyes to spot the best path forward.
We’ve walked this road before with plenty of fintech products. Why not bounce your ideas off our team? Let’s start with a friendly chat about your goals. One call, no commitment – just expert insights to guide your way.
