Alex Kreger, UX Strategist & Founder of the financial UX design agency UXDA, designs leading banking and fintech products in 37 countries.
In the race to make financial services as seamless as possible, we may have lost sight of something critical: Friction.
As banks and fintechs chase a utopia where every transaction is as easy as swiping a finger on a phone or blinking an eye, we must ask ourselves—are we eliminating too much friction? And more importantly, at what cost?
Friction: A Catalyst For Choice
Friction isn’t just a nuisance to be eradicated; it is a fundamental component of decision-making. In finance, the very essence of responsibility, accountability and conscious choice stems from the pause that friction provides.
Without it, we risk a world where financial transactions become so automatic that they lose their significance—where customers sign up for loans, credit cards or investment products without a second thought. While the idea of totally frictionless banking sounds appealing, it can also be a double-edged sword.
Psychologically, friction serves as a checkpoint—a moment where users must stop, think and choose. This pause can make the difference between reckless spending and prudent financial planning, between buying a product impulsively and making an informed investment decision.
I believe it is this friction that keeps customers responsible and financial institutions accountable.
Freedom Of Will Is Rooted In Friction
Banks and fintechs have largely embraced the shift towards frictionless systems as part of the broader trend toward digitalization, but this can have unintended consequences, and is especially concerning in industries like insurance, lending, and wealth management where significant, long-term consequences stem from each decision.
If banking were completely frictionless, the customer experience might become so intuitive that it removes the very concept of decision-making. Imagine a world where every payment is made automatically without consent, where loans are approved and drawn without sufficient understanding and where investments are made without contemplation of risk. What looks like convenience could quickly evolve into a dystopian financial landscape where choice is no longer part of the equation.
Friction, then, acts as a barrier—not to efficiency but to over-automation. When employed purposefully, it helps protect the customer’s ability to choose, ensuring their freedom of will. In an industry where trust and responsibility are everything, the right amount of friction ensures that both the bank and the customer understand the gravity of each decision.
Without friction, we risk creating an environment where consumers make uninformed financial decisions because the tools designed to serve them are too fast for deliberation. Responsible financial institutions must strike a balance—offering convenience without sacrificing the space for thoughtful decisions.
The ‘Best Interface Is No Interface’ Trap
Proponents of the “best interface is no interface” philosophy argue that the most efficient systems are invisible, requiring no manual interaction. While this might work well in industries focused on efficiency—think smart home systems or automatic refills for household goods—the stakes are considerably higher in financial services.
Critics of this idea, particularly in the financial sector, warn that automating interfaces to the point of invisibility can lead to dangerous disengagement from critical financial decisions.
When interfaces disappear, so does the opportunity for analysis. A system that makes automatic payments, transfers or investment decisions on behalf of the customer, with no prompts for engagement, removes the crucial moment of review.
Without an interface that prompts users to pause and think, I find that financial choices lose their deliberative aspect and become automatic reactions, stripping away conscious choice.
In finance, conscious choice is not just an optional luxury—it’s a necessity. Customers need moments to reflect on their spending habits, assess their investment risks or reconsider the terms of a loan.
By automating these actions to the point of invisibility, banks risk turning customers into passive participants in their own financial lives. A no-interface system may reduce the burden of interaction, but it also removes the mental space for reflection—a critical element for financial responsibility.
Conclusion: The Need For Smart Friction
Rather than aiming for absolute frictionlessness or invisible interfaces, the future of banking should be about “smart friction”—moments where a pause is necessary for clarity, understanding and deliberation.
Customers should be able to swipe for ease but stop when a decision requires attention. Friction should act as a safeguard, especially when choices have long-term implications, such as entering into debt, making a large investment, or choosing financial protection products.
“Smart friction” works best when it increases trust without feeling like an obstacle, adds value to the user journey—such as by improving security or guiding better decisions—and feels intuitive and proportional. You want to make sure users see it as helpful rather than frustrating.
This is not to suggest that financial services should go back to being slow and cumbersome, but there must be intentional friction at critical points in the journey. Whether it’s an extra confirmation step before completing a major transaction, or a clear explainer before committing to a loan, banks need to understand that friction can enhance customer trust and satisfaction.
Here are some examples of “smart friction” in banking:
• Two-factor authentication
• Fraud checks
• Transaction confirmation prompts
• Nudging saving goals
• Spending alerts
• Investment risk warnings
• Tailored product recommendations
• Account recovery verification
• Confirmation for new payees or extra fees
• Simplified contract previews
While speed and ease are valuable, they should not come at the expense of responsibility. The future of banking, then, should not be about removing all barriers but placing intelligent ones where they matter most.
As we look ahead to a more digital and automated banking landscape, it’s time to reconsider the role of friction. We must embrace it as a tool for empowering customers to make thoughtful, informed, and ultimately responsible financial decisions.
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