It takes less than 30 seconds to make a lasting first impression. Netflix understands this. That’s why they give you the power to skip intros. It’s a small gesture, but a powerful one, a nod to the user’s time, a UX decision rooted in empathy.
Now, contrast that with a common experience in fintech by Martin, an X user:
“The startup I signed up for last week made me upload three bank statements, verify my identity twice, and answer 20+ compliance questions before showing me their dashboard. Took 23 minutes.”
When the user complained, support simply said:
“We have to collect that data anyway.”
They're right. You can’t skip compliance. But here’s the twist: you can decide when it shows up.
This isn’t just a tale of friction; it’s a cautionary UX story. In today’s digital economy, especially for startups, it’s not enough to build something valuable. You have to deliver that value with as little resistance as possible or risk losing your user before they even get to see what your product can do.
Table of Contents
The Age of Instant Gratification
Why First Impressions Matter More Than Ever
The Netflix UX Lesson: Optional Friction
Fintech and the Compliance Conundrum
You Can’t Skip KYC But You Can Delay It
Progressive Onboarding: Let Users See the Value First
What Happens When You Don’t Respect the User’s Time
Trust Isn’t Built with a Form
Three UX Mistakes That Drive Users Away
Designing for Compliance Without Killing Momentum
Breaking Down the “Compliance Wall”
From Fintech to SaaS: Universal Onboarding Lessons
A Framework: Value First, Verification Later
Case Studies: Who’s Doing It Right?
Conclusion: Don’t Just Say You Care About UX
1. The Age of Instant Gratification
We don’t just live in a digital world — we live in an on-demand world. From ordering groceries to finding love, our modern interfaces reward immediacy. Time is no longer a luxury; it’s the primary currency.
When a user signs up for your app or website, they’re not making a long-term commitment. They're testing the waters. And if the water feels cold or worse, murky with endless forms they’ll bounce. Fast.
2. Why First Impressions Matter More Than Ever
You only get one shot at delighting a new user. A poor first-run experience (FRE) can mean churn before activation. It doesn’t matter how revolutionary your dashboard or product is if the user never sees it, it might as well not exist.
The most successful startups obsess over onboarding. Why? Because they know the real product is the experience, not just the code.
3. The Netflix UX Lesson: Optional Friction
Netflix offers you the option to “skip intro.” It’s a design choice with massive implications.
It respects your time.
It gives you control.
It removes unnecessary steps between you and what you came for: content.
Friction isn't always bad but optional friction is best. It empowers the user, not overwhelms them.
4. Fintech and the Compliance Conundrum
Let’s be clear: compliance is non-negotiable. KYC (Know Your Customer), AML (Anti-Money Laundering), and various financial regulations require apps and websites to collect data, verify identity, and report activity.
But here’s the UX gap: many fintechs front-load all these steps. Before showing a single graph or useful insight, they throw users into a gauntlet of forms, uploads, and ID scans.
That’s not security. That’s poor sequencing.
5. You Can’t Skip KYC But You Can Delay It
Here’s a simple idea that changes everything:
Make the user want to complete compliance.
How? By showing them what’s on the other side.
Give them a peek into the dashboard. Let them connect a demo account. Walk them through an animated preview of what they’ll unlock. Then say:
“To continue, we’ll need to verify your identity.”
That’s very different from:
“Before you do anything, upload your driver’s license.”
6. Progressive Onboarding: Let Users See the Value First
Progressive onboarding is the practice of gradually collecting user information as they explore the product. Instead of one big wall upfront, you create a smooth slope.
This approach has been adopted by top-performing apps in multiple industries:
Duolingo lets you start learning a language in seconds before asking you to sign up.
Figma offers a sandbox to play in before creating an account.
Hourspent lets you explore available projects on their Marketplace before asking you to apply to freelance. They also allow you to post new projects on their Marketplace before requiring you to sign up.
It works because users are most motivated after they see value not before.
7. What Happens When You Don’t Respect the User’s Time
Every extra step in onboarding is a chance for abandonment. Studies show that:
A 10-second delay in loading leads to a 50% drop in engagement.
86% of users have deleted an app after just one bad experience.
The average app loses 77% of its daily active users within 3 days of install.
In fintech, the stakes are even higher because you’re dealing with trust and money. If your first impression is slow, confusing, or invasive, you lose credibility not just users.
8. Trust Isn’t Built with a Form
Too many fintech products assume that security equals trust. But trust is emotional, not procedural.
Seeing a clean dashboard builds trust.
Seeing your data visualized builds trust.
Seeing how the product works before handing over sensitive information builds trust.
Compliance requirements don’t have to be at war with good design. They just need to coexist intelligently.
9. Three UX Mistakes That Drive Users Away
Let’s break down common onboarding traps:
1. Front-loading Friction
Requiring too much before offering any reward.
2. Poor Error Handling
Unclear messages like “Something went wrong.” What went wrong? Why?
3. Lack of Progress Indicators
If I don’t know how many steps are left, I assume there are many. Learn from Hourspent onboarding for freelancers.
A thoughtful UX fixes all three with progressive disclosure, clarity, and transparent design.
10. Designing for Compliance Without Killing Momentum
You’re not building a government. You’re building a product.
Here's how to bring in compliance without killing momentum:
Chunk the tasks: Break long forms into multiple screens.
Use inline validation: Let users know in real-time if something’s wrong.
Auto-fill where possible: Pull data from APIs to save typing.
Save progress: Let users complete onboarding in stages.
Gamify compliance: Use progress bars, checklists, and rewards.
11. Breaking Down the “Compliance Wall”
Instead of a wall, build a series of gates and only lock them when it’s necessary. For example:
Let users explore the app with demo data.
Delay document upload until after account linkage.
Ask for basic ID only when they initiate a transaction, not before.
Think like a theme park: you don’t show the ticket booth before the roller coaster. You show the coaster and then ask for the ticket.
12. From Fintech to SaaS: Universal Onboarding Lessons
While compliance is mostly a fintech issue, the onboarding insight applies universally:
In SaaS: Don’t gate your features behind a credit card if your value isn’t obvious yet.
In eCommerce: Don’t ask users to register before they’ve browsed.
In EdTech: Let students take a sample quiz before making them create an account.
Across industries, the principle is clear: Value before verification.
13. A Framework: Value First, Verification Later
Here’s a product-led onboarding framework that works across verticals:
| Stage | Goal | Example UX Choice |
|---|---|---|
Explore | Let users see the product | No login needed to preview dashboard |
| Engage | Get them interacting | Use demo data, simulate actions |
Build Trust | Show credibility and value | Testimonials, previews, fast response |
Commit | Ask for required data | Minimal form, progress bar, rewards |
Activate | Unlock full experience | Verified account + full access |
14. Case Studies: Who’s Doing It Right?
1. Robinhood
Onboards with email and phone. Lets you browse before asking for SSN. Clear progress indicators guide KYC steps.
2. Wealthsimple
Shows simulated portfolio before collecting detailed user data.
3. Revolut
Delays ID check until a transfer is attempted. You can explore features first.
4. Betterment
Beautiful explainer flows before account creation. Trust is built visually, not just legally.
15. Conclusion: Don’t Just Say You Care About UX
You can’t skip compliance but you can design when and how it shows up.
Netflix gets it. They could force you to watch intros. Instead, they offer a button. That small UX choice has become iconic. It says, “We respect your time.”
What does your product say?
In the battle for user attention, empathy is your edge. If your onboarding starts with a wall, you’ll lose. But if it starts with value, and if your compliance is timed right, you’ll not only gain users you’ll keep them.
Because when users feel respected, they don’t delete the app. They stay.
