UX Optimization for Splitwise: Reducing Cognitive Load with Smart Grouping
In this project, I conducted a critical UX analysis of Splitwise, a shared expense tracking app, focusing specifically on how users view balances across their Groups and Friends tabs. I proposed two design changes aimed at improving clarity and reducing cognitive load, using established UX design principles and psychological theories as the foundation for my solutions.
The Problem
While Splitwise works well for users with a small number of groups or friends, the experience becomes cluttered and mentally taxing as the number of tracked balances grows. The current design prioritizes recent activity and alphabetical order, but this creates visual and mental friction — especially when balances are mixed (you owe some, you're owed by others).
This made it hard to quickly answer a key user question: “Who do I owe, and who owes me?”
Design Change 1: Grouping Balances Using Visual Hierarchy
Issue:
In the Groups tab, balances were displayed by most recent updates, and contained mixed color-coded amounts within each group. This violated the Gestalt principle of similarity, making it hard to visually cluster related information.
Solution:
I grouped all the groups where the user owed money into a distinct orange-highlighted box, and all the groups where the user was owed money into a separate green-highlighted box. This visual separation reinforces two key psychology principles:
Common Region (Palmer, 1992): Elements enclosed together are perceived as belonging together.
Von Restorff Effect (von Restorff, 1933): Distinct elements stand out and are more memorable.
This change made it easy for users to immediately recognize which groups they needed to take action on, reducing decision time and improving overall clarity.
To reinforce action, I included a small nudge:
“Don’t forget to settle your groups!”
This simple addition taps into loss aversion (Kahneman & Tversky, 1979), reminding users of unfinished business without being intrusive.
Design Change 2: Restructuring the Friends Tab with Proximity and Similarity
Issue:
By default, the Friends tab sorted contacts alphabetically, mixing owed, owing, and settled balances. This contradicted the Gestalt principles of proximity and similarity (Wertheimer, 1923), forcing users to mentally sort through irrelevant or unrelated data.
Solution:
I restructured the Friends list into three clear, color-coded groups:
People the user owed (orange, placed at the top)
People who owed the user (green, placed below)
Settled or inactive friends (placed at the bottom)
I also added spacing between the groups to further visually distinguish them, improving the scannability of the page.
Underlying Psychology & UX Principles Used
Hick’s Law (Hick, 1952): Simplifying choices reduces decision-making time and cognitive load.
Common Region (Palmer, 1992): Elements in a shared container are perceived as related.
Von Restorff Effect (1933): Distinct items in a list are more memorable.
Loss Aversion (Kahneman & Tversky, 1979): People are more motivated to avoid losses than to achieve gains — used here to encourage balance settlement.
Gestalt Principles:
Similarity & Proximity (Wertheimer, 1923): Grouping by color and spacing helps users make sense of data faster.