A FinTech Case Study
Decreased Drop-Off Rates by 15%
Introduction
An optimized user experience is essential for ensuring customer engagement and conversion in a fintech company. As a UX Designer at my previous employer, I took on the challenge of enhancing the user journey of their flagship product, its student loan application, to address the high drop-off rates during the account creation phase.
I led a comprehensive redesign aimed at optimizing the account creation process and minimizing friction points through my meticulous analysis of our loan application and competitors’, several iterations of user flows, and user testing. This portfolio piece delves into the problem, my hypotheses, the methodologies I used to test them, and the tangible outcomes achieved in improving user retention and conversion rates within the loan application.
The Problem
After reviewing data analytics on our loan application, the analytics team discovered an average 22% drop-off rate during the account creation phase.
This phase occurs midway through the application, leaving users with about half of the application questions to complete before submission.
Such a high abandonment rate significantly affects conversions as many users are leaving the application before submitting. By pinpointing the specific area of drop-off, I directed my efforts toward improving the user experience for this phase.
The Original User Flow
In the original user flow, email capture and password creation occurred mid-application. After completing all questions, users reviewed their application and could submit it for pre-qualification. Non-cosigned applicants received an immediate pre-qualification status. Cosigned applicants were required to complete both parties’ applications before viewing their pre-qualification status.
The Original Create Account Screen
Upon my review of the create account screen, several immediate concerns came to mind as potential reasons for user drop-off.
First, there is an overwhelming number of input fields. Second, the progress bar at the top of the page indicates that the user is not even halfway through the application at this point. Both of these contribute to high interaction cost and a lack of immediate gratification, which may lead to user frustration, errors, and ultimately abandonment of the service.
Competitor Analysis
The next step I took in tackling this project was analyzing four competitor loan applications and identifying strategies they employed to retain users through the account creation phases of their applications.
| Competitor 1 | Competitor 2 | Competitor 3 | Competitor 4 | |
|---|---|---|---|---|
| Where account creation (email and password) occurs | First screen | Second screen | Last screen before user sees their loan offer |
After user has submitted their application, seen their rates, and selected a loan option |
| Field count |
5 input fields and 1 checkbox |
5 input fields |
2 input fields and 1 checkbox | 2 input fields (1 is pre-filled email) |
| Copy | Minimal | Minimal |
More copy; evokes an “it’s ok to shop around” mentality |
Minimal; personalized with user name |
| Company recognition | Widely recognized | Widely recognized | Lesser known | Widely recognized |
Out of the four competitors I reviewed, two positioned email capture and password creation at the beginning of their loan applications. Interestingly, these two companies are more well known. People tend to trust and do business with familiar and popular companies. This might suggest that users are more inclined to create an account upfront with these lenders due to their familiarity and recognition.
One of the four competitors positioned email capture and password creation at the end of their application, just before revealing loan offer to the user. This was notable because this competitor appears to be lesser known than the others I reviewed. Without the recognition factor to motivate users to create an account, this lender incentivizes users by providing them their loan offer only after they create an account.
Here are the takeaways I gathered:
Incentivizing users could present a promising solution for the company I was working on due to it being lesser known than some of the competitors I reviewed.
I would take a minimalistic approach to the layout, copy, and input field count, while prioritizing personalization and pre-filling wherever possible to minimize user effort.
Problems & Hypotheses
After analyzing both our application and those of our competitors, I identified three problems and developed corresponding hypotheses for each problem.
Problem 1: Users experience a lack of immediate gratification and perceive minimal value in creating an account for our product in the account creation phase.
Hypothesis 1: By moving account creation to after users have completed the application questions and just before they see their pre-qualification status, users will feel motivated and incentivized to continue and create an account.
Problem 2: The seven input fields on the create account screen is overwhelming and contributes to high interaction costs.
Hypothesis 2: By splitting up email capture and password creation onto separate screens, users will feel less overwhelmed with what is being asked of them.
Problem 3: Users have low trust in the company due to it being lesser-known compared to many of its competitors.
Hypothesis 3: By employing clear, concise messaging that instills trust, users will develop a stronger sense of confidence in our company.
By making the above changes, user drop off rates on account creation will decrease.
The Application Reflow
I presented several iterations of user flow diagrams and prototypes to various stakeholders for feedback and alignment. With feedback from my manager, product owners, development, and project management, I identified the most optimal flow for testing on users.
Here are the key changes I implemented to the reflow:
I separated the email capture from the password creation step to reduce cognitive effort. However, I placed email and name capture early on in the application process to allow users to easily resume their progress if they were to leave. I also did this to maintain communication with users for marketing purposes and be able to personalize content from then on with the user’s name.
I introduced a 'Resume Progress' feature for returning users, allowing them to seamlessly pick up where they left off with their email if they exited the process before completion.
I positioned the password creation step after users finished answering the application questions. This strategic placement aimed to leverage users' heightened motivation at this stage, as they are just one small step away from completing the application.
The Redesigned Email Screen
In addition to reducing the number of input fields on the email capture screen, I made adjustments to also build user trust.
I wanted to make it clear to users that their information was safe and secure and their credit score wouldn’t be impacted by entering their email or creating a password. Furthermore, I included supporting copy beneath the headline, 'Come back anytime to continue your application. No risk, no obligation, and no impact on your credit score.' This message aims to encourage users to provide their email, assuring them they can leave and return to their application without consequences and without affecting their credit score.
The Redesigned Create Account Screen
I focused on fostering user trust on the Create Account screen as I did with the email capture. I incorporated copy to reassure users that their credit score would not be affected at this step.
Additionally, I provided password requirements upfront and implemented a 'show password' feature to minimize user error. The dynamic updating of password requirements provides users with immediate feedback, reinforcing their progress and motivating them with success messaging.
User Testing Objectives
I next set out to validate my redesigned flow and screens with user testing.
My objectives were to:
Test the current application flow to measure users’ level of trust, motivation, and confidence throughout the application and specifically on the Create Account screen. Discover any additional pain/friction points users experience when having to create an account.
Test the Create Account Reflow to measure users’ level of trust, motivation, and confidence throughout the application and specifically on the email and password capture screens.
Compare the level of user trust, motivation, and confidence of the reflow to that of the current flow.
Test Plan
Conduct unmoderated usability tests for a more realistic user experience
Desktop application
2 users
Test the current flow and then the reflow
20-30 minutes per test
Mobile application
5 users
Test the reflow only
10 minutes per test
Participants
Age 19-30
Employed full-time (30 or more hours per week) or full-time student
Test Findings
I synthesized and analyzed the data I gathered through user testing.
Key insights I gathered from testing the redesigned flow included:
All participants rated confidence levels in filling out the information on the redesigned Create Account screen as high
“Very easy, straight-forward”
“Easy, simple, and to the point”
All participants rated motivation levels to continue beyond this point (at account creation) as high
“Almost done with the application”
“Easy, clear to read”
“Not difficult or frustrating”
All participants rated trust levels of this product as high
“Process has been efficient and trustworthy so far”
“It was very clear that it didn’t affect your credit score and this is always a big issue when you’re trying to look at multiple loan options”
“I don’t have to worry that if this isn’t the [loan] that I want, I can go ahead and do another one”
Overall, I received positive results to the redesigned application flow. There was no frustration observed when participants were instructed to enter an email or create a password.
User trust, motivation, and confidence were not diminished in the redesigned flow.
Through user testing, I was able to gather additional insights to improve other parts of the application, as well, which included:
Adding the total number of steps to the progress bar in mobile view so users can see their overall progress
Adding more context to the Social Security Number capture question as to why it is being asked for, if it will be secured information, and if it will affect the user's credit score at that point.
Create Account screen in the redesigned application flow
The Results of the Reflow
I worked closely with front- and back-end development to implement the redesigned application flow. Over the next 10 months, we observed a significant improvement in user engagement metrics on the application.
Specifically, our data showed a notable decrease in drop-off rates during the email capture stage, dropping from 22% to 7%.
Additionally, the total drop-off rate of the entire application flow experienced a substantial decrease, going from 47% to 23%.
Solving User Drop-Off in Summary
These impressive results highlight the effectiveness of my strategic adjustments, which aimed at enhancing user experience in multiple aspects.
Incorporating principles of immediate gratification motivated users to continue their journey.
Streamlining the application process and reducing interaction costs alleviated user overwhelm.
Clear and concise messaging that evoked trust fostered a stronger sense of confidence in the company.
The redesigned application flow not only minimized user abandonment during email capture but also throughout the entire application journey. These findings underscore the positive impact of my redesign efforts and provide a promising foundation for further optimizations.