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Digital Lending: 3 Tips to Help FI’s Combat Application Abandonment

Posted by Yelena Kolesnik | Thu, Sep 26,2019 @ 08:53 AM

Having a strong digital strategy is paramount to all financial institutions. There are multiple studies that have shown that well over 60% of consumers use their mobile phones and devices for banking.  As consumers embrace digital, they also require it to be easy to use. The term ‘frictionless experience’ gets bantered around a lot these days because if it takes more effort to do a task online than what the user feels it is worth, the A-word occurs, abandonment. Duh-duh-duh-dum (ominous music plays in background as word is read).

According to the Baymard Institute, multiple financial institutions report digital transaction abandonment rates exceeding 50% and going as high as 70+%. And just as many consumers say that convenience matters, whether that be dealing with multiple forms, number of keystrokes, and privacy of their data.

Try doing it yourself. You will find that trying to fill out a multi-page loan application online using a keyboard that is minuscule is not the easiest thing in the world. And then, hitting that submit button only to have the form come back as incomplete with fields marked in red that are empty or have incorrect data that you have to go back and fix can be frustrating.

But there are ways to create a less friction for your clients and lower your abandonment rates. Let’s look at three features that your online application should have that can help your financial institution shrink that scarlet letter A.

 

1. Keep the Application Short

Keep the number of pages to a minimum. Online applications should not exceed 4-5 pages MAX! Don’t overwhelm your applicants with an overly complex application that will scare them away. Also, consider the fact that a lot people are on the go and may have to stop the application process due to time constraints. You want the application to be filled out on the initial try. If they have to start the application process and then come back later to complete it, most applicants just don’t come back.

 

2. Ensure the Site is Quick, Responsive and Flexible

Try to make the process as simple and quick as possible. Avoid unnecessary questions and make sure that your application looks good and is user friendly from various devices. Your online application should be designed to ensure that consumers can easily access digital applications from a desktop, tablet, and especially a mobile phone.

 

3. Leverage New Technology for Easier Consumer Use

Leverage technology that can help consumers complete your application faster. Your online application should support a driver’s license scan feature and pre-fill options like using data from LinkedIn or a credit bureau service such as Equifax’s InstaTouch®. These pre-fill options lower the amount of keystrokes an applicant needs to make and speeds up the process for the customer.

No one wants to lose revenue to abandonment. MeridianLink’s Application Portal™ is the solution that incorporates all of these features and many others to create the most the most convenient customer experience for online applications. To learn more about Application Portal and how application pre-fill can lower the A-word in your digital strategy, attend our webinar on October 1, 2019.  The webinar entitled, “Enhance the Digital Consumer Experience at Your FI Using Application Prefill and Authentication” is slated for 2:00pm ET and will focus on how to:

  • Improve the consumer experience of MeridianLink's Application Portal, especially from on a mobile device
  • Reduce customer friction by lessening the number of keystrokes
  • Shrink application abandonment
  • Authenticate applicant identity from the beginning of the process
  • Increase application information accuracy
  • Embrace the digital consumer experience

A demo of Application Portal employing Equifax InstaTouch® ID is featured in this webinar. InstaTouch ID is a consumer authentication service using Equifax data to authenticate a consumer’s identity and pre-populate consumer data into the online application. InstaTouch ID is now available for all Application Portal users.

To register, use the button below or paste the following URL into your favorite browser.

https://attendee.gotowebinar.com/register/3727853893397194509?source=MKG

 

Register Today

 

Photo by Tyler Franta on Unsplash