Iterating FinTech solutions, best practices, how to conduct and use cases – this is how to use A/B testing for digital banking experiences that attract and retain users

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Are you using insights to refine your FinTech’s UI?

We’ve shown before that established financial players are losing customers to disruptive technologies and brands. Some 58% of consumers are willing to switch to a different platform purely because it offers a better experience – in fact, 78% of financial decision-makers have already started experimenting with disruptive brands.

Now, this points as much to a need for new core features, abilities, and problem-solving as it does to simply being more responsive to customer needs. Fortunately, you don’t have to guess what those needs are, you can simply use data to listen to customer preferences, and then implement A/B testing in digital banking experiences to prove/disprove the need for any updates to your product.

Here’s how to use A/B testing to refine digital baking experiences…

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First: What is A/B Testing?

A/B testing, or split testing, is a method of comparing two versions of a webpage, app feature, or any digital asset to determine which one performs better. By presenting variant A to one group and variant B to another, businesses can measure which asset delivers the best outcome and make data-driven decisions to enhance user experience and achieve desired outcomes.

See how to use data to understand consumer needs.

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How Does it Work?

There are six basic steps to A/B testing:

1. Formulate hypotheses: Identify areas of improvement and create hypotheses based on user behaviour data. For example, if there’s a bottleneck in your user journey, brainstorm why you think that is – does it need stronger copy, better navigation, etc? 
2. Create asset variants: Develop two versions of each element to be tested (A and B). For example: two screen designs – your original and a new one. Or two versions of your value proposition, etc.
3. Divide traffic: Randomly assign users to either variant A or B. Using a tool such as Google Optimize, Firebase or Apptimize lets you automatically split traffic to a specific page/screen.
4. Collect data: Monitor user interactions and gather performance data. You want to set up your analytics to give you a side-by-side comparison of how many people took the desired action on each page/screen.
5. Analyse results: Compare the results to see which variant performs better. Basically, which interaction, A or B, delivered you the most positive results the fastest, that’s clearly the stronger version.
6. Implement changes: Apply the successful variant to enhance the overall user experience.

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A Note on A/B Testing in Finance

In the finance sector, especially digital banking, A/B testing is vital for optimising user interfaces, improving customer journeys, and increasing user satisfaction. By continually testing and refining digital experiences, fintechs can stay competitive and responsive to user needs.

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The Benefits of A/B Testing in Digital Banking

First and foremost, A/B testing is a way to enhance user experience with more intuitive and user-friendly interfaces based on what the user wants/prefers. But it also helps drive up conversion rates, because the most successful elements boost user actions, encouraging more users to complete those same desired actions, such as signing up for accounts or completing transactions.

Another crucial aspect of A/B testing is that it enables data-driven decisions. A/B testing uses real user data to guide design and functionality improvements. It’s also a cost-efficient way to iterate, allowing you to optimise resources and increase possible returns.

See how to use analytics to drive user engagement.

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Best Practices in A/B Testing

• Start small: Begin by testing minor changes first, to gather some initial insights before making larger modifications. This helps in understanding user behaviour gradually.
• Be specific: Focus on one variable at a time – testing too many variables at once can obscure certain insights, such as which change is actually driving the results you’re seeing.
• Keep it consistent: Ensure you test both versions (A and B) under the same circumstance: time, traffic sources and user demographics, to avoid skewed results.
• Use reliable tools: Leverage robust A/B testing platforms such as Optimizely, VWO, or Google Optimize. These tools offer comprehensive features for designing, implementing, and analysing tests.
• Analyse thoroughly: Employ analytics tools to gain deep insights into test results. Look beyond surface metrics to understand user interactions and behaviour changes.

Learn how to increase your active users.

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How to Conduct A/B Testing to Improve Digital Banking Experiences

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Step 1: Identify Your Goals

The first step in conducting effective A/B testing is to determine what you aim to improve. Do you want to increase account sign-ups, boost transaction completions or just enhance user engagement? 

Your goal will guide your testing process and help you measure the success of your tests. For example, if your goal is to increase account sign-ups, you might choose to start by optimising the registration form, screen or the sign-up process flow.

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Step 2: Choose Which Elements to Test

Common elements to test in digital banking include screens and page layouts, sign-up forms, navigation menus, call-to-action buttons, content presentation and personalisation features. 

For instance, you might test different versions of a landing page to see which design better engages users or experiment with various sign-up form fields to reduce abandonment rates.

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Step 3: Develop Your Hypotheses

Before running your tests, develop hypotheses about how changes to the selected elements will impact user behaviour. It should be a clear, testable statement that predicts the outcome of your changes. 

For example, "Maybe changing the colour of the call-to-action button from blue to green will increase click-through rates." This helps your analysis team know what to look for when analysing (did it improve CTR?).

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Step 4: Design and Implement Tests

After you’ve created the variants for your test(s) based on your hypotheses, implement the tests by randomly splitting users coming into this page/screen to either see variant A or B. You can use A/B testing tools such as Optimizely, VWO or Google Optimize to manage the test setup and deployment.

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Step 5: Monitor and Analyse

Once the tests are live, you can track metrics relevant to your goals, such as conversion rates, click-through rates, or time spent on the page, and then compare the performance of each variant to determine which one is more effective. 

For example, if variant B (green button) has a higher click-through rate than variant A (blue button), you can conclude that the colour change positively impacts user behaviour. Then you can make a call on permanently changing the button colour to drive that outcome.

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Step 6: Iterate

What’s great is you can use insights from one place to apply to other places in your product – maybe all our buttons should be that colour?

A/B testing is an iterative process, so you should continually test new hypotheses and refinements to keep improving the user experience. Doing this over time, you slowly but surely build a constantly improving product and user journey.

See the guide to data-driven development in finance.

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Use Cases (What Things to A/B Test)

• Page and screen layouts: Landing pages are often the first point of contact for users, making it crucial for setting the right impression. Test different arrangements of elements to find the most engaging design.
• Sign-up forms: They’re critical for converting visitors into customers. Experiment with different form fields and their layout to reduce abandonment rates.
• Navigation menus: Effective navigation is essential for usability and ensuring users can easily find what they’re looking for. Test different menu structures to improve usability and findability.
• Call-to-action buttons: CTAs are key to driving user actions such as sign-ups, downloads, or purchases. Evaluate button colours, text, and placement to increase click-through rates.
• Content presentation: The way content looks can significantly impact user engagement and retention. Compare different ways of presenting content to see which is more effective at retaining users.
• Personalisation features: A personalised touch can enhance user satisfaction by providing a more tailored experience. Test personalised versus non-personalised content to see how it affects user engagement.

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Need help optimising your FinTech experience?

Our technology consultants can help you make informed decisions and move faster.

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