Executive Summary

Starling Bank has established itself as a leading challenger in the UK’s financial sector, renowned for its robust digital banking platform. This case study examines the customer journey experience associated with opening a digital savings account via the Starling Bank mobile app. The detailed analysis captures each step of the account setup process, evaluates the app’s customer interface (UI) and customer experience (UX) aspects, and considers post-account functionalities like money transfers and support from the chatbot/virtual assistant.

Key metrics:

·  Total digital customer base has surpassed 2 million.

·  Active mobile app customers make up about 80% of the digital customer base.

·  The app consistently maintains top ratings across stores, reflecting over a million downloads.

·  The digital adoption rate within the existing customer base is at approximately 85%, indicating significant engagement.

Market Context

The UK fintech market, which includes digital banks, has experienced rapid growth, reaching a value of £11 billion in 2023. It is projected to grow by around 8% annually, creating a favourable environment for digital-first banks to expand and innovate.

The UK’s banking industry is undergoing a significant transformation, with a bold shift towards digital-first solutions driven by consumer demand for enhanced convenience and efficient online interactions. Digital challenger banks such as Starling, Monzo, and Revolut have collectively captured around 14% of the UK’s retail banking market, reflecting the increasing consumer preference for digital-first banking options over traditional banks, according to recent estimates from Accenture.

54%¹ of UK banking customers prefer a mobile-first approach to banking, with features like instant notifications, real-time transaction tracking, and in-app budgeting tools listed as top preferences.

In this competitive landscape, Starling Bank focuses on tech-savvy customers who value seamless and intuitive digital interfaces. The move towards fully digital banking services aligns with broader industry trends towards mobile-first and customer-friendly solutions, catering to customer expectations of speed, minimal friction, and comprehensive service offerings.

Customer Journey Mapping

Digital Savings Account

• Pre-Account Opening (3 mins): Customers download and launch the app, navigate to new account option “Open a new account’, and engage with prompts, displaying excitement about initiating the process. The clarity and directness of the setup interface facilitate customer engagement.

• Clarity of Instructions: Clear instructions before starting with the application about the information and documentation requirement.

• Verification Process (5 mins): A quick verification via phone number, SMS code entry, and passcode selection assures customers of secure, reliable access, instilling confidence early in the journey.

• Account Registration (3 mins): Simple steps guide customers through providing personal information (Name, DOB, Email Address) and ID documentation. The straightforward approach is appreciated, minimizing potential complexity or confusion.

• Terms & Conditions Review (5 mins): Customers face a lengthy review process for terms and privacy notices, with potential for disengagement highlighted here as a friction point due to content length and complexity.

• Final Setup (4 mins): Completing the setup, customers upload a photo ID and record a short video statement. Although mixed feelings of awkwardness emerge here, the customers’ eagerness to complete the process is indicative of the app’s engaging design journey.

• Verification Process (5 mins): After video upload, customers provide information about personal income, address proof and verify email address to complete application

Post-Purchase Engagement

• Money Transfer (3 mins): Efficient inter-bank transfer and bill payment processes elicit customer confidence, underscoring Starling’s emphasis on ensuring seamless financial transactions.

• Easy to add a new payee with option to pay directly after adding.

Digital Interface Assessment

Starling Bank’s mobile app offers a streamlined, customer-centric design that effortlessly supports both iOS and Android customers. The app’s interface features clear navigation, robust language support, and thoughtfully integrated UI/UX elements, enhancing overall customer satisfaction.

Starling Bank’s digital strengths lie in stellar customer experience attributes, including an interactive and aesthetically pleasing visual design. Key innovations include gamification features, enhancing customer satisfaction as customers progress toward spending goals. The app’s security measures and personalization capabilities are further evidence of its digital excellence.

Starling Bank’s in-app bill-splitting feature makes it easy to divide expenses with friends or family directly within the app. Customers can split bills equally or customize amounts, select contacts from their list, and track who has paid—all without leaving the app.

The feature simplifies shared expenses, encourages app engagement, and boosts convenience by eliminating the need for third-party apps. This tool enhances customer experience by making group financial management straightforward and hassle-free.

In-App Live Chat

The live chat feature is easily accessible within the Starling app, allowing customers to quickly connect with a support representative. This makes it a convenient option for customers who prefer direct, human assistance without having to call or visit a branch.

Unlike some other banking apps that might rely more heavily on automated bots, Starling’s live chat service offers a human touch, with the ability to escalate to a real person when needed. While there are occasional minor delays, the overall responsiveness, helpfulness, and ease of use make it a strong feature of the app.

Insights, Learnings, and Enhancement Suggestions for Starling Bank

Starling Bank’s mobile app practices offer valuable lessons for enhancing customer experience:

1. Smooth Onboarding: Clear instructions and quick, secure verification ease customer setup. Banks can improve by simplifying verification and providing upfront guidance.
2. Customer-Friendly Design: Starling’s intuitive UI and gamification engage customers. Banks could enhance engagement by adopting attractive, easy-to-navigate designs and gamified features.
3. Personalization: Security settings and personalized options make Starling’s app customer-centered. Other banks can leverage AI for tailored experiences.
4. In-App Support: Starling’s live chat with human assistance provides reliable support. Combining automated help with human support is beneficial.
5. Bill splitting feature: Starling Bank’s bill-splitting feature lets customers easily divide expenses, track payments, and manage shared costs directly in the app. Adopting these strategies can help banks create smoother, more engaging, and customer-centered app experiences.

To enhance customer experience, short-term priorities should include optimizing process flows by auto-filling or auto-fetching personal information of customer to avoid manually entering. Long-term, Starling could explore deploying AI and machine learning to deepen personalization and refine UX elements, maintaining an edge in the competitive digital banking landscape.

3 key areas of improvement to make journey shorter and more seamless for customers

• Auto-fetch/Auto-fill customers personal information from a valid ID
• Clearly define number of steps to complete the journey
• Progress bar for tracking the step-by-step progress