Zeffo, an investment app, aimed to simplify the investing process for novice investors in India. This case study outlines the design and research process that led to the development of the app.
The well-tested MVP version was launched and a voluntary onboarding—limited to 100 new investors—allowed for collection of quantitative data for further product development. The data showed high engagement rates and repeat usage.
Zeffo App: Simpifying Finance for Novice Investors
Overview
Zeffo app as launched on Android
We used a sprint-based approach to develop Zeffo, a micro-investing app. By deeply understanding our target users and their financial behaviors, we identified a gap in the market and developed a minimum viable product (MVP) focused on round-up investments. Our design process involved user research, rapid prototyping, and iterative testing to create an engaging and delightful digital experience.
The level of ambiguity that came with the project made it one of the most challenging and intellectually enriching projects I've worked on so far.
Understanding the Domestic Investment Market
The Indian investment landscape was characterised by low penetration, particularly among first-time investors. Complexity, fear of loss, and lack of financial literacy were significant barriers to entry. Zeffo aimed to disrupt this by creating a simple, engaging, and accessible investment platform.
Summary
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At 14%, Indian households were among the lowest invested in equities globally compared to 45.5% in the United States
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70% of mutual fund investors in India earned less than ₹5L annually (about the salary of an Uber driver in India)
Comparison of investment rates: India versus United States
The Age Factor
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For this, we divided the investors into two categories. The first was 18 to 35 years, that's mainly the Millenials, and then there's 36 years and above. The significant difference we witnessed was the more extensive participation from Millenials, evident from most digital investment platforms.
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Over the past four years, most digital platforms have seen 65% to 70% of investors in the younger age group. Now, this can be a function of many factors like marketing, greater use of smartphones to buy and sell, the total convenience of not going to individual websites, etc.
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This seemed more like a societal change toward investing.
Age group of investors using digital platforms for investing
The Gender Mix
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No prizes for guessing! As the data shows, males did the bulk of investing; it gets exciting though, to observe the ratio of the male to female investors over the past four years—2017 to 2020.
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The number of female investors doubled within a period of those 4 years. Not to mention, the investment value coming from female investors also doubled.
Percentage of Salary Invested
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Increased incomes were not translating into increased investments.
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And after a deeper inquiry, we found that a more significant part of their increased income was going towards "discretionary expenses." Let's say a wishlist pops out—the latest Macbook, buying a house or car on EMI, etc. That's where the money was going. This was meaningful learning about investor behavior, people's spending habits in general and, their relationship with money.
Understanding the unmet needs through qualitative research
We talked to people
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Across income slabs
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Across life stages
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Across behaviors and motivations
Real-time observations made screen-wise from the first prototype we tested
Through various research methods like guerrilla research, interviews, card games, and co-creation exercises, we came up with a list of learnings.
Some of the insights were
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People aspired to invest but were overwhelmed by the finance world and the jargon involved.
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People used conventional investing methods like FDs, RDs, chit funds, gold, etc. However, they did not know they could get better and risk-free returns.
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People were scared of losing money.
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People wished to explore, but finding a trusted guide was difficult.
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People wanted to learn about investing
Identifying opportunities through sprints
Based on the insights, we started asking questions as a group. Questions from all perspectives: Design, marketing, engineering, business feasibility. Soon, we had settled on a considerably long-term goal for an MVP.
How might we build an investment app that allows low effort and consistent financial investing for 1M young Indians by the following year by guiding them reliably and delightfully?
Idea → Prototype → Test → Synthesise → Repeat
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Idea: Based on the set goal, we started generating ideas as a group.
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Prototype: We brainstormed ideas, storyboarded them and created a working prototype ready to be taken to the users based on the research method discussed.
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Test: We validated those ideas with a minimum set of 5 users (recruited or guerrilla).
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Synthesise: After recording our observations during the interviews, we sat together as a team and synthesised the learnings and next steps.
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Repeat: We repeated this process for 15 weeks, sometimes in parallel, until we had a validated set of promising ideas we knew would work.
Designing the Interface
We defined the features based on the ideas, and the engineering team confirmed their feasibility. Then, we started designing the interface, visual language, design system, and illustrations.
The Zeffo interface was designed with simplicity and clarity in mind. Key features included:
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Onboarding: Engaging onboarding process with clear explanations of investment concepts.
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Personalized Investment Journeys: Tailored investment recommendations based on user profiles.
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Educational Modules: Interactive modules to teach financial literacy.
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Round-Up Investments: A low-barrier entry point for starting investments.
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Simple and Intuitive Interface: Clear navigation and minimal jargon.
Zeffo's app interface on Android
Preparing for the Alpha Launch
Once the production design was engineered and functional, we were ready to launch the product for 100 users who had volunteered for testing.
As a team, we sat together to define some metrics to track for the 100 users to measure successes and failures at different points.
For the Alpha version, we built a feature called Round-Up investments. Here's a 50s video (made by the client's team) explaining what Round-Ups are...
Results and Impact
The MVP version was launched and a voluntary onboarding of—limited to—100 new investors, allowed for collection of quantitative data for further product development. The data showed high engagement rates and repeat usage.
And, while specific metrics would provide more concrete evidence of success, the initial response and user feedback indicate that Zeffo has made a positive impact on financial inclusion in India.
Lessons Learned
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Research till you are sure: Deep understanding of user needs is crucial for product success.
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Iterative design is essential: Continuous testing and refinement lead to better products.
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Education is key: Empowering users with financial knowledge builds trust and loyalty.
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Simplicity is powerful: A clutter-free interface enhances user experience.