UX Over Underwriting: Why Fintechs Need To Focus On The End User

This article was originally published on Forbes through the Young Entrepreneur Council (YEC), where Sal Rehmetullah shares insights as a member.

If you’ve ever applied for a small-business loan or opened a new financial account, you’ve probably experienced firsthand how delightfully (or perhaps not-so-delightfully) outdated the onboarding processes can be. Let’s face it: Fintech companies often promise speed, innovation and efficiency—but when it comes down to it, many still seem trapped in the world of fax machines, lengthy forms and endless paper trails. Why is it that SMB onboarding often feels like stepping into the past?

Most fintech solutions have been designed from the inside out. They focus heavily on internal process improvements, efficiency metrics and compliance checkpoints, forgetting to ask one essential question—”How does this feel to the end user?” This user experience gap is a glaring oversight that leaves many customers frustrated, confused and wondering if the futuristic fintech promises were just clever marketing.

The Tale Of Two Onboardings: Apple Card Vs. SMB Financing

Let’s consider a shining example of user experience done right—Apple Card. Signing up for Apple’s credit card is not only straightforward, it’s almost magical. Users simply open their iPhones, enter a minimal amount of personal data, and within moments, voilà—you’re either instantly approved or gently declined, without endless forms, verifications and headaches. They realized something crucial: Users don’t want underwriting complexity thrown at them; they want simplicity and ease.

Contrast this sleek approach with the typical SMB onboarding experience: countless documents, manual data entries, multi-week approval processes and requirements that seem more suited for a CIA security clearance than a small-business loan. Many fintech solutions, in their attempt to optimize internal workflows and satisfy stringent compliance standards, have inadvertently lost sight of their customers’ experience.

Ironically, fintech was supposed to be the antidote to traditional banking red tape. Yet, here we are, still asking customers to scan and fax documents—often more cumbersome than the traditional banks fintechs vowed to disrupt.

The Magic Of Preapproval: A Lesson In User Delight

Let’s talk about another user experience gem—preapproval letters. You’ve likely received these from your bank or credit card issuer, cheerfully informing you of your eligibility for instant credit or a loan without any immediate hassle. Why does preapproval feel so great? Because it tells the customer, “We’ve done the work behind the scenes, so you don’t have to.”

Imagine if SMB financing took a similar approach. Instead of endless back-and-forth document collection and verification after the fact, fintech solutions could proactively leverage data to preapprove small-business customers. They could provide personalized and pre-validated credit offers based on accessible data points—bank statements, industry trends or even social signals. Suddenly, onboarding would feel less like an audit and more like an invitation.

Why UX Matters In Fintech—Not Just For Retail Consumers

Many fintech providers mistakenly assume a great user experience is only necessary in consumer-facing products. SMBs, they reason, will tolerate complexity because they “get it.” But small-business owners are consumers too. They’re accustomed to intuitive experiences from Amazon, Uber and Netflix. Their expectations are shaped by these consumer giants, which means any SMB fintech tool will inevitably be compared against these standards—fair or not.

Ignoring UX in the SMB space means risking frustration, churn and losing ground to more intuitive competitors. Many SMB customers, already stretched thin running their businesses, have zero patience for confusing onboarding experiences. Simplicity and clarity aren’t nice-to-haves; they’re must-haves.

Practical UX Tips For Fintech Providers

Here are some actionable, light-hearted, but serious tips for fintech providers aiming to enhance their UX and win customer loyalty:

1. Stop Asking Users to Play “Fill-in-the-Blank”

If the data exists elsewhere, your customers shouldn’t have to reenter it. Utilize existing integrations, data aggregation and open banking standards to minimize redundant form-filling.

2. Underwriting is Your Problem, Not the User’s

Your users don’t care how complex your underwriting process is. Shield them from your internal sausage-making. Make approvals swift, clear and painless, even if your internal processes are extensive.

3. Design With Empathy

Test onboarding experiences by putting your own team through them. If your staff wouldn’t gladly go through your onboarding process on their lunch break, neither will your customers.

4. Transparency Beats Complexity

If there’s complexity that can’t be removed, at least be transparent about timelines and next steps. Nothing irritates users more than unclear instructions or vague timelines.

5. Humor Helps (Really)

If you have to ask for extensive information, at least keep the tone conversational and humorous. Users can forgive a lot if they feel the experience is warm and human.

6. Delight by Default

Aim for pleasant surprises—fewer steps, quicker approvals, delightful interactions and unexpected efficiency. Your customers should never be surprised negatively (like discovering yet another form).

Fintech’s Future: Putting The ‘Fin’ Back In Fun

The future of fintech is not just faster back-end processing, AI-powered decisions or cloud-native compliance. It’s user experience. The companies that recognize this first and foremost will win hearts, minds and market share. After all, no one wakes up excited to fill out compliance forms—but they might wake up excited to build their business if onboarding is as seamless as buying a latte through a mobile app.

To thrive in today’s fintech landscape, remember: Optimize internally but prioritize externally. After all, great user experience isn’t just about making things easier for your customers, it’s about creating experiences they genuinely enjoy.

Because let’s face it—no one has ever looked at an onboarding form and thought, “I wish this took even longer.”

Read more from Sal’s Forbes YEC blog here.