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Mental Models in Online Banking

Lisa Rankin
November 4, 2003

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Introduction
Mental models are schemas that contain varying degrees of detail and accuracy and guide

a user’s expectations and understanding of a tool (Muramatsu, 2001). They are constructed from a

user’s perception, imagination, or interpretation of reality (Khella, 2002). Wickens states that

mental models generate a set of “expectancies” regarding how the system will behave (1998).

Thus, designers can increase the learnability and ease-of-use of a system by designing it to reflect

a user’s existing mental models for a set of tasks. Most users are not even conscious of their

mental models but they use them continuously to understand and interact with a system.

Wickens states that the more often one recognizes a situation or object, the stronger the

memory trace will be, and the easier it will be to remember the objects in the future. Thus, the

ability to retrieve and reactivate information depends on how frequently and how recently it has

been used. This considered, casual users who don’t interact with a computer system frequently,

will have a more difficult time remembering how to use the system than more frequent users. To

assist a user with learning system tasks, mental models can be used to trigger similar experiences,

helping users to retrieve information that may be useful in accomplishing the task at hand.

Mental models generate a set of “expectancies” on how the system will behave (Wickens,

1998). When presented with new information about an event, the mind searches for previously

stored mental models that have similar structures (Khella, 2002). This enables people to make

quick inferences and react to new information. If a person does not have a similar mental model

to recall, a new one will be created. Accordingly, a designer should try to create an interface that

is easy for a user to understand by constructing it to resemble similar models a user has stored in

“terms of the uses to which the system will be put” (Lockwood & Constantine, 1999).

Design begins with the designer’s mental model of what the system should look like to

support the user (Lockwood & Constantine, 1999). “In the Design of Everyday Things,” Donald

Norman discusses three mental models that make up a system:

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• The Design Model: How the designer chooses to represent the model.

• The User’s Mental Model: How the user understands the system.

• The System Model: How a system works from the perspective of the programmer.

Norman explains that ideally, a user’s model and the design model should be the same (1988, p.

189). He then stresses that it is the designer’s responsibility to create an interface that adequately

reflects the system. This ensures that it is “functional, learnable, and useable” (Norman). The

user, he states, understands the system through the system image (p. 190). Thus, designers should

design the interface to reflect the users’ backgrounds, knowledge, and experiences (Sasse, 1997).

In contrast, the system model should be transparent to the user. That is, users do not need to know

about a programmer’s code or how the system was built.

Century Bank’s use of Mental Models

The ability of a system to reflect a user’s preexisting mental models can influence the

usability and ultimately, the success of the system. For example, banks should design an interface

that reflects a user’s existing mental models and supports the creation of new mental models. This

can be done by leveraging a user’s knowledge based on previously performed banking activities

such as logging on to an ATM, viewing statements, and paying bills. Century Bank is an example

of a bricks-and-mortar bank that now offers its customers the ability to bank online. It is faced

with the challenge of modifying its users’ existing mental models and helping them to create new

mental models so that they can successfully complete banking tasks.

Logging on to the System

People are comfortable using an ATM to withdraw cash, deposit money, and view

balances. They are used to logging on to an ATM by swiping their bank card so the magnetic

strip can be read and entering their PIN. Since this behavior is engrained in most users, it would

be helpful if an online banking site provided a similar way to log in.

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Century Bank, however, ignores the user’s mental model regarding how to use an ATM.

Rather, it creates a brand new model for how a user should access a banking system. Below are

the series of steps a user needs to complete to log in to an ATM and to log in to the Century Bank

online system.

ATM Machine Century Bank’s “Internet Banking”

1 Physically approach an ATM machine In a browser, go to
http://www.century-bank.com
2 Swipe or insert bank card Select “Internet Banking” (Exhibit 1)
3 Enter personal PIN number Select “Internet Banking” again. (Exhibit 2)
(this is a number that you created
4 Select an activity. Enter “Internet Banking ID” and “Internet
Banking PIN.” (Exhibit 3)
5 The customer can now view balances.

The “Internet Banking ID” and “Internet Banking PIN” are unique numbers that are

different from the customers’ card number (or account number) and their ATM PIN. A customer

receives their “Internet Banking ID” and “Internet Banking PIN” by mail when they sign up for

Internet Banking. By using an arbitrary “Internet Banking ID” and “Internet Banking PIN” rather

than a customer’s existing card number and PIN, Century Bank forces the customer to learn a

new way of accessing the same banking system. To make matters worse, if a customer wants to

enter the “eXpress Pay” section of the Century Bank web site, they have to enter another

randomly generated ID and password. The “eXpress Pay” section enables the user to manage

online bill payments. To enter “eXpress Pay,” once they have entered the system (outlined above)

they would have to perform the following additional steps:

To Access eXpress Pay Functionality

6 Click on “New Payment” (Exhibit 4)
7 Enter “Express Pay ID” and “Express Pay
Password.” (Exhibit 5)
8 The customer can now view payees, add

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payees, view payment history, and write

checks online. (Exhibit 6)

As one can see, the method for logging in to Century Bank’s “Internet Banking” is much

more difficult than accessing an ATM. This design could have been simplified if the designers

considered a user’s past experience with ATMs and required the user to enter only their bank card

number and their ATM PIN. Moreover, the design is further complicated by requiring the user to

enter an additional “Express Pay ID” and “Express Pay Password” to enter the bank’s online

payment section of the site. The system is particularly challenging to the “casual user” as they are

not likely to remember the combination of IDs and passwords that must be used to access the

different areas of the internet banking site (Wickens, 1998).

Viewing Balances

Banking customers traditionally view balances when a statement is mailed to them each

month. The statement shows all of the transactions that occurred during the month. This includes

debits and credits. While statements are still mailed to customers who use online banking every

month, customers now have the opportunity to log on to the Century Bank internet banking site to

download or view their statements electronically. Additionally, internet banking sites let users

filter through transactions based on date, amount, and check number (Exhibit 7).

Banking online provides increased sorting and viewing capabilities. This forces the user

to create a new mental model regarding how bank statements can be viewed. In “Software for

Use,” Constantine and Lockwood state that a user’s mental model of a system develops over a

period of time based on the user’s interaction with the system interface. The user eventually

develops an understanding of the system, how to use it, and how it reacts. This is also true with

online banking. While banks that offer internet banking can build upon the mental model of

viewing statements, users will have to modify their model to benefit from the increased sorting

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and viewing functionality offered. This will happen as they advance from a novice to an expert

user.

Paying Bills Electronically

Before internet banking, customers paid bills by writing checks from their check books.

Now, however, using internet banking, customers can pay bills online. This increases efficiency

by eliminating the need for stamps and envelopes and by electronically recording payments. The

later enables a user to easily review their transaction history. Online banking also enables users to

set up recurring payments so that they don’t have to write a check each month. However, the

mental model used to pay bills online is different from the one use to write checks. For example,

a customer that is logged in to the Century Bank internet system and is ready to begin paying bills

using the eXpress pay functionality (Step 8 above) must complete a new set of tasks to submit a

payment online. The table below lists the tasks that a customer needs to complete to make a

payment both the traditional way and the online way.

Pay Bills Manually Pay Bills Online

1 Open bill Open bill

2 Fill out check Select payee from a list of existing payees or

add a new payee to the list.
3 Record check number, date, and payee Enter amount to be paid and date to be paid
information (name and amount) (Exhibit 8).
4 Enter required information on the Click “Submit Payment.”
payment stub
5 Insert check and payment stub into the If desired, print out payment confirmation
envelope. screen for records.
6 Make sure Payee Address and return
address are visible
7 Add postage

8 Drop in mailbox

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As one can see paying a bill online is much quicker than paying a bill in the traditional

manner. Clearly, the steps required to pay a bill are very different for each of the two methods. In

this case, it would not be useful to create a system that mimics a user’s preexisting mental model

of paying bills. For example, a user does not need to sign their name when making an online

payment. Adding this step and others to the online payment process to better reflect the user’s

existing mental model would result in unnecessary steps and inefficiencies.

Initially users may be weary about paying bills online. Many users may not realize that a

check from the bank has actually been sent when they click on the “send payment” button. This is

because they are used to detaching the check, putting it in an envelope, placing a stamp on the

envelope, and putting it in a mailbox. Thus, the system should ensure that the user realizes that

their payment has been sent and no further action is required. As the user employs the system

more frequently to pay bills online, his mental model will become stronger. This will result in a

more efficient use of the system.

Mental Models
When customers begin to use internet banking they are likely to begin as novices. This

means that they will only use the most basic features like viewing account balances. However, as

they become more knowledgeable with the system and advance to an expert user, they will use

more functionality such as online bill payments, transfers, and stop payments. Designers can help

guide a user from novice to expert by designing the system interface based on the users’ mental

models of the system functions (Davidson, Dove & Weltz, 1999).

In Sasse’s thesis “Eliciting and Describing Users’ Models of Computer Systems,” she

discusses the distinctions between different types of user models. One model, the task-action

mapping model, describes “the structure of a real world task and the actions needed to perform

that task” (Sasse, 1997). Models derived from task-action mapping enable a user to use a system

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even though the user has no detailed knowledge of how the system works (Sasse). This is evident

in the case of writing checks online. The user does not need to know how the system actually

processes the checks and sends money to the payees. The user simply has to know how to enter

the payment in the online interface.

For a task-action mapping model to be effective there must be consistency within the

interface. That is, the same action will occur every time that a user clicks on a specific icon or

presses a “Send Payment” button. Throughout the Century Bank site, design inconsistencies make

it difficult for a user to create a mental model. For example, on the Century Bank home page, the

icon used to represent internet banking is shown as a computer monitor with a dollar sign on top

of it (Exhibit 1). Clicking on this icon brings the user to a second page that also has an internet

banking icon. This time the icon is a computer mouse with a dollar sign on top of it (Exhibit 2).

The user must click this icon to get to the log in page. Thus, two different images are used to

direct the user to the same task. This inconsistent use of icons makes it difficult for the user to

create a mental model.

The task-action mapping model uses tasks as a user’s starting point (Sasse, 1997). This

model is useful in designing internet banking systems since users will often visit a banking site

with specific tasks in mind such as viewing accounts or paying bills. However, relying solely on

task-action mapping could create inefficiencies in the user’s interaction with the system. For

example, requiring a user to unnecessarily enter all of the fields on a check or simulating placing

the check in an envelope would add unnecessary steps and decrease productivity. Additionally, a

design that only represents a task-action model could hide important functionality and thwart user

performance (Sasse, 1997). Thus, in addition to supporting task-action models, system design

should allow new models to be created when necessary.

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Conclusion

Usability can be improved by designing information that is consistent with existing

mental models (Wickens, 1998). Century Bank could improve its user experience by having users

log in to the system in a way that is more consistent with logging in to an ATM. Additionally,

Century Bank needs to remove design inconsistencies from the interface. Design should be

consistent so that the interface reflects a “safe” environment where a user can learn the new

system by forming expectations of how it will behave when certain actions are taken (Davidson,

1999).

Wickens also states that system design should support the development of new mental

models. For example, the designer of an online banking system would not want to simulate the

entire traditional check writing process task-by-task. Instead, they would want to look at the goal

of the task and provide a streamlined way of paying bills. Users will then learn to develop a new

mental model of how to pay bills online. Although a customer’s prior experience with traditional

banking will provide them with a starting point when they begin to bank online, customers will

still need to develop new mental models to benefit from all of the system’s features and

functionality. This will occur when novice users become expert users. The more the design

leverages existing mental models, and supports the creation of new models, the easier the product

will be to use (Davidson, 1999).

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Bibliography

Constance, L. and Lockwood, L. (1999). Software for Use. New York: ACM Press.

Davidson, M., Dove, L., Weltz, J. (199) Mental Models and Usability. Retrieved October 26,

2003 from, http://www.lauradove.info/reports/mental%20models.htm.

Khella, Amir. (2002). Knowledge and Mental Models in HCI. Retrieved October 26, 2003 from,

http://www.cs.umd.edu/class/fall2002/cmsc838s/tichi/knowledge.html.

Muramatsu, J. & Pratt, W. (2001). Transparent Queries: Investigating Users’ Mental Models of

Search Engines. Acm.org. Retrieved October 26, 2003 from,

http://doi.acm.org/10.1145/383952.383991.

Norman, D. (1988). The Design of Everyday Things. New York: Basic Books.

Sasse, M. (1997). Eliciting and Describing Users’ Models of Computer Systems. University of

Birmingham. Retrieve October 30, 2003, from

http://www.cs.ucl.ac.uk/staff/a.sasse/thesis/Frontpage.html.

Wickens, C., Gordo, S., & Liu, Y. (1998). An Introduction to Human Factors Engineering. USA:

Addison-Wesley Educational Publishers Inc.

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Exhibit 1

Exhibit 2

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Exhibit 3

Exhibit 4

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Exhibit 5

Exhibit 6

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Exhibit 7

Exhibit 8

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