Design Thinking In Banking

Sector
Made by: Kajal Jha
Mohd. Talha
Nikhil Savita
Akanksha Pandey
Ayush Yadav
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently
capitalised and well-regulated. The financial and economic conditions in the
country are far superior to any other country in the world. Credit, market and
liquidity risk studies suggest that Indian banks are generally resilient and have
withstood the global downturn well.
The Indian banking industry has recently witnessed the rollout of innovative
banking models like payments and small finance banks. In recent years India has
also focused on increasing its banking sector reach, through various schemes like
the Pradhan Mantri Jan Dhan Yojana and Post payment banks. Schemes like these
coupled with major banking sector reforms like digital payments, neo-banking, a
rise of Indian NBFCs and fintech have significantly enhanced India’s financial
inclusion and helped fuel the credit cycle in the country.
The digital payments system in India has evolved the most among 25 countries
with India’s Immediate Payment Service (IMPS) being the only system at level
five in the Faster Payments Innovation Index (FPII).* India’s Unified Payments
Interface (UPI) has also revolutionized real-time payments and strived to increase
its global reach in recent years.
CLASSIFICATION of BANKING INDUSTRY IN INDIA
 Content
 What is Design Thinking?
 Design thinking is growing in Popularity, But Not a New Phenomenon
 Implementation of Design Thinking in the banking industry
 How Design Thinking Works for banking industry
 Empathy Is a Critical Factor in Design Thinking for banking industry
 Let everyone contribute Ideas
 Conclusion
How Design Thinking is changing the
Banking Industry
 Banks and credit institutes don’t usually take ‘the human factor’ into consideration while
developing products and services. But several financial institutions are now starting to understand
how important it is. They are using proven business strategies called ‘Design Thinking’ to foster
creativity and innovation. 
 People mistakenly believe that “design thinking” is all about aesthetics — a philosophy only
limited to creative types of people, who specialize in design. But that’s not at all the case. It does
not mean that you can ignore aesthetics, but a good-looking design that does nothing for consumer
needs or does not solve any consumer problems has zero chance at success.
 So what is Design Thinking for real?
 Design thinking is about applying the design principles to the way people interact with
the world, rather than focusing solely on aesthetics. An iterative process in which you
try to know the user, challenge your own assumptions and re-define problems in an
attempt to identify different solutions that might not be easily apparent using
conventional methods. Design thinking revolves around developing a deep interest in
understanding users of products and services. This helps you develop empathy with the
target user.
Understanding of the banking situation
 This is the complete opposite of how banks and credit institutions traditionally design products
and services. Financial institutions tend to develop products based on their own internal processes
and operational efficiencies, instead of focusing on the consumers. Finishing up the product with a
pretty wrapper and calling it a day.
 Financial institutions then wonder why consumers get frustrated with their products and service
For example – A customer abandoning the online account opening halfway through the process.
The process doesn’t meet the user’s need or address their problem;  to open an account without
having to go to a branch. Design thinking, in theory, can help solve that problem.
Design thinking is growing in Popularity, But Not a New
Phenomenon

 Design thinking is not a new concept. It’s been around in some form or the other since
the 1960s. In fact, today it will be difficult to find a Fortune 100 company that does not
incorporate Design Thinking or at least some aspects of design thinking in how they get
products and services to market.
How Design Thinking Works for banking industry
 1. Empathize:
 Conduct research in order to develop knowledge about user behaviour. Hypothesize
that your goal is to improve the onboarding experience for new users. In the first phase,
you talk to varied actual users, you observe what they do, how they think, and what
they want. 
 Understand user motivations, discouragements, if they experience frustration at any
stage of the process. The goal of the empathize phase is to gather observations, so you
can truly start to empathize with your users and their perspectives.
 2. Define:

 Combine your research from the empathize stage and observe where problems exist
from a user standpoint. When stating your users’ needs, highlight opportunities for
innovation. Use data gathered in the above phase to draw insights. Lay down all your
observations and draw parallels across users’ current experiences. This will help you
identify a common pain point or an unmet need.
 3. Ideate

 Brainstorm and collate a range of crazy, creative ideas that address the user’s pain
points or unmet needs. There should be total freedom while ideating, quantity trumps
quality. Bring all your team members together and share ideas with one another and
build on each others’ ideas.
 4. Prototype 

 The goal of this stage is to understand what parts of your ideas work, and which do not
as you start to weigh the impact versus feasibility of your ideas through feedback on
your prototypes. Your ideas should be as real and tactile as possible (not always easy in
a service industry like banking). Change your concept based on feedback, prototyping
again and again quickly.
 5. Test

 Return to your users for feedback. With questions like  ‘Does the solution meet users’
needs?’ and ‘Is there an improvement in how they feel, think, or do their tasks?’  Put
your prototype in the hands of real people and see if it achieves everyone’s goals. Even
after you start executing your vision, you should continue to test.