Lloyds Bank

Fin Tech

Project brief

Financial technology, often shortened to FinTech or fintech, refers to new technology and innovations that aim to compete with traditional financial methods in delivering financial services. It is a rapidly growing industry that leverages technology to enhance activities within the finance sector.

For example, fintech simplifies complex options for customers, such as applying for loans or mortgages, through streamlined and user-friendly processes.

The banking sector is keen on developing new methods and embracing change through digital innovation to improve the user experience. This includes everything from robust mobile applications and native web apps to enhanced in-store experiences through kiosks.

Recently, the global banking sector has faced challenges due to low-interest savings rates, which increases the need for innovative solutions to encourage savers to return to the market.

In response, Lloyds Bank has commissioned us to develop a compelling user experience to support their savings products, targeting the Millennial and Gen Z demographics. We will select one platform—either a mobile application or a website—for this design, ensuring the design aligns with Lloyds Bank’s existing brand identity.

Lloyds Bank

In the ever-evolving landscape of the financial services industry, Lloyds Bank stands as a stalwart navigator, one of the top 3 banks in the UK with 11% of user share. Lloyds bank charting a course through the complexities of modern banking. As one of the UK’s traditional banks, Lloyds Bank is famous among many young people. According to data, it is more prevalent among Generation Z (26 %) than other banks.

Design goals

Encouraging the target demographic to initiate a retirement product
Encouraging young savers to save
Planning for Saving Goals
Book health insurance

Promotional video

User Experience

4 Goals re-design

Retirement product

Regarding the news report, the property will be Gen Z’s main source of wealth in retirement. (Abdi, 2024) Buying a property is the primary financial goal for Gen Z. Instead of buying retirement products early, plan ahead.

The new Lloyds APP design highlights “Planning early for retirement” content to attract users to tap into the retirement product section. The retirement product page will focus on personalized service, bonuses and an AI retirement calculator regarding each individual’s income.

Encouraging young savers to save

“Gen Zers would rather have a better quality of life than extra money in the bank”. (Dickler, 2023) Young people are more likely to focus on life experience rather than save money for an unsure future. This reflects the fact that the bank’s interests are no longer good enough to attract Gen Z.

Therefore, instead of the traditional encouragement plan, the new APP will add an Auto-save function to help users save money daily with 0.01% interest. Also, collaborate with Gen Z’s most popular brands; when users pay with Lloyds bank debit cards, they will automatically have a 10-20% discount.

Planning for Saving Goals

Establishing savings goals helps users establish a regular financial structure. Significantly, when Gen Zers are focused on a higher quality of life, healthy saving goals will help them structure a long-run target.

The new APP interface will highlight the “Save it and leave it” function due to Gen Z’s behavioural pattern, which makes the saving process more accessible and straightforward. Also, when users achieve their goals, they will have the option to celebrate the milestone.

Lloyds Bank also sets saving challenges in the APP to attract Gen Z users. The saving challenges will also encourage users to invite their friends to join. After the challenge is complete, users will win an award.

Book health insurance

Many Gen Z’s do not have suitable health insurance. Due to lack of insurance area’s knowledge, low percentage of have chronic/ serious disease etc. However, with age, health insurance will get expensive and less beneficial. In order to raise Gen Z’s awareness of the new app interface, users can chat with an AI bot to discover suitable health insurance for them.

Also, they have one free full body health check before they book the health insurance. After the booking is successful, when the user goes to the pharmacy and pays with a Lloyds card, they will get a half-price discount for buying medicine.

Competitor analysis

	Lloyds Bank	HSBC	Barclays	NatWest
Online banking services	✅	✅	✅	✅
Market share (in billion British pounds)	882.8	2393.64	1549.7	702.6
Age of consumer group	Gen Z	Millennials	Millennials	Gen X
FinTech partnerships	Thought Machine	Bud	MarketInvoice	Esme Loans
Strength	One of the largest and oldest banks in the UK	One of the largest and most widely recognized international banks	Well-established and recognized brand in the financial industry	NatWest has a global presence and serves customer in various regions
Weakness	The bank's performance is closely tied to the economic conditions in the UK	HSBC's heavy reliance on the Asian market	Barclays has faced legal challenges and controversies in the past	International presence many be less extensive compared to some global banks
Opportunity	Exploration of new markets or expansion of services to international markests	Wealth management growth	Explore opportunities in green finance and environmentally conscious banking	Opportunities for expanding international operations and reaching new markets
Threat	Regulatory changes Low-Interest rates	HSBC faces competition from both traditional banks and new fintech entrants	Intense competition from both traditional banks and emerging FinTech players could affect market share and profitability	Changes in interest rates can affect the profitability of lending and investment activities

User demographic

Age
18+ Generation Z (born in mid-1990s to early 2010s)

Gender
Appeals to all genders

Income level
Mainly are entry-level salary, and some are student incomes (Part time job etc.)

Education level
Undergraduate/Postgraduate

Geographic Location
United Kingdom

Technology adoption
· Highly proficient with technology
· Active on social platforms (Instagrams, Tiktiok)
· Prefered online, especially with smartphone

Psychographic Traits
Open to new knowledge, fast learners

Behavioural patterns
· Values individuality and self-expression
· Peer recommendations and reviews heavily influence Gen Z’s decision-making
· Highly concerned about privacy issues