Wrapping Crypto in a Bank is Not Enough: Building a Holistic Crypto Experience Requires More Than Just Banking as a Service

Listen carefully, and you’ll hear "banking as a service" echo around the chambers of the cryptocurrency world. Perhaps fed up with that eternal wait for a golden bridge from TradFi across to DeFI, crypto providers have built their own bridge across the divide; enabling crypto users to access accounts, cards, loans and other banking products via a banking API.

It’s been two decades since Steve Krug’s ‘Don’t Make Me Think’ revolutionised human-computer interactions with the insight that interfaces shouldn’t make users scratch their heads, pause, grind their teeth, or generally puzzle over how to get things done. If the goal is mass adoption, why do so many crypto platforms still insist on complex, confusing interfaces? When will the industry catch up to Krug’s revolutionary insights? When are crypto exchanges going to get the memo?

Oddly, given how innovative crypto developers are in so many other ways, this—you’d think basic—message doesn’t seem to have gotten through to many crypto exchanges. The user experience for owners of crypto coins is often frustrating and, in certain situations, might even drive the user to consider rival platforms.

First impressions count

First impressions count, and the onboarding process often leaves much to be desired. Know-your-customer (KYC) checks are necessary, but the way they’re handled can be a major stumbling block. Imagine the frustration of a prospective user forced to take multiple selfies, only to have each one rejected. Or consider the individual whose bank statement is declined because it doesn’t match a very specific layout. These aren’t isolated incidents; they’re all too common in the current KYC process.

A 2022 survey of UK cryptocurrency owners by Huobi Global found 31% said the verification process was an obstacle to buying crypto. Only by streamlining procedures, such as accepting various formats of bank statements and simplifying the process for taking selfies, can crypto platforms reduce these frustrations without compromising security. It’s about creating a smoother onboarding experience that aligns with customer expectations and paves the way for a more intuitive and approachable crypto journey.

The issues often extend beyond the onboarding phase. Users may find that they need an account in a specific currency or have to engage in currency exchange, which can lead to a subpar user experience. Additionally, users must provide a reference number because there is no individual IBAN assigned, a process that can be time-consuming and difficult to track. Often, payments take a long time to process, among other challenges.

The cost of crypto

The fee structure in cryptocurrency transactions can vary significantly depending on the country, leading to some unexpected surprises for users. In certain territories, platforms may deduct a reasonable percentage of the transaction or the amount deposited. In others, the deduction may be higher than anticipated, depending on local regulations or business practices. This inconsistency across different regions often leaves cryptocurrency owners surprised and unhappy at the end of their transactions, underscoring the importance of clear communication and understanding of the fee structures specific to each country. This is exacerbated by platforms which do not disclose their fee schedules on their websites,
leading to confusion.

Even user interface (UI) design is often lacking. It’s not obvious how to complete common but important tasks. The interface doesn’t provide helpful pointers and tips, either explicitly through a help system or simply through its design. This makes the whole process of investing in and transacting with crypto daunting, particularly for novices.

Be customer-first, not tech-first

Crypto platforms often prioritise technological innovation to stay competitive, rapidly introducing new features to attract clients. However, this tech-first approach can overshadow user-friendliness, leading to complex solutions that might not be intuitive for those without technical backgrounds. This focus on competing through technology sometimes risks overlooking the importance of meeting customer expectations and usability, especially for newcomers to the crypto industry.

To win customers, and kudos, founders and developers concentrated on making their platforms the most advanced and feature rich. For a while this strategy worked; it drew in the highly tech-literate first generation of crypto users. However, if they want to win the next generation of customers, not only is this strategy not enough — it’s counterproductive.

The complexity and poor user experience offered by many exchanges puts off new, less tech savvy users and, perhaps even more damaging, it also creates an environment of uncertainty. This fosters a lack of confidence and, given that one of crypto’s main barriers to further adoption is a lack of trust among potential new users, anything in the interface and user experience which amplifies or reinforces this feeling is potentially a significant business problem.

Switch to a customer-driven mindset

Right now, there are300 million crypto users worldwide. To take that number past 500 million, and then beyond the first billion, the sector needs to change its mindset. It needs to move from a tech-first to a user-first approach; and that means a combination of simplicity and knowledge transfer.

To forge a competitive edge in the crypto landscape, platforms must adopt a comprehensive, customer-centric approach from the moment of onboarding and throughout the user experience. This goes beyond merely providing simple interfaces and easy-to-use workflows; it involves a deeper understanding of customer needs and preferences, especially for new users.

For example, platforms can provide a range of services such as lending and staking for more experienced users, while engaging newcomers with rewards, training, and education. Coinbase offers training related to different tokens, and Binance has established the Binance Academy to offer user-specific training based on difficulty levels. Additionally, the creation of crypto communities, forums, and meetings where users can exchange experiences fosters a sense of community and brand loyalty.

Such strategies, which also encompass aspects like safety, regulation, and intuitive UI, align with customer expectations, concerns, and aspirations, promoting user satisfaction and loyalty. Platforms like Fiat Republic, which recognise the need for quick deposits and withdrawals, user-friendly design, and transparent fees, are leading the way in enhancing the customer experience and furthering the mass adoption of cryptocurrencies.

The first platforms that offer customers a simple, intuitive interface, with abundant guidance and support, will undoubtedly have a significant competitive advantage. Yes, banking-as-a-service can be a useful and welcome part of the crypto landscape. Still, it’s not the only change that needs to happen; to unlock the next wave of crypto growth, exchanges must embrace simplicity and a customer-first user experience.

The challenge, though, is greater than mere technical adjustment or improved design. It’s a call to fundamentally rethink how we approach technology, not just as an end but as a means to enrich lives, simplify tasks, and democratise finance. The time has come for the crypto industry to rise above mere innovation and to forge a path that puts the user at the heart of every decision, every design, and every service.

About the Author
Anna Wojcik, is a Product Manager at Fiat Republic, the the compliance-first, API-driven and highly secure and scalable bridge between banks and crypto.

Editorial Note: This press release is made possible by MVPR