Smartbiz aimed to make it easier for people applying for loans. Borrowers had to collect and upload six months' worth of bank statements, which was a slow and tricky process.
To fix this, the product team decided to use Plaid, a tool that makes things simpler. This case study will show how we improved the loan application process by using Plaid and made it much easier for users.
Plaid allows users to link their bank accounts and financial institutions to a wide range of applications and services. This connectivity can be used for financial apps, including budgeting apps, investment platforms, and loan application systems.
Once users connect their accounts through Plaid, the platform can retrieve financial data such as account balances, transaction history, and account details. This data can be used to provide insights, perform financial analysis, or streamline loan applications.
Plaid prioritizes security by employing robust encryption and authentication measures. It ensures that sensitive financial information is protected during data transmission and storage. Plaid also adheres to regulatory standards to enhance data security.
Plaid normalizes and standardizes financial data, making it easier for developers and businesses to work with data from various financial institutions. This simplifies data processing and analysis.
By adding Plaid, a third-party service that allows secure linking of financial institutions directly, it would allow us to improve the following metrics:
Reduced Application Time: Decrease the average time it takes for users to complete the loan application by integrating Plaid.
Increased Application Completion Rate: Boost the percentage of users who start the application process and complete it successfully.
Enhanced Data Accuracy: Ensure that the financial data retrieved through Plaid is accurate and minimizes errors in the application.
Reduced Support Requests: Decrease the number of user inquiries and support requests related to the bank statements portion of the process.
Improved Security: Strengthen the security of user financial data when integrating Plaid. Can be tracked by how many applicants prefer to link through Plaid versus uploading manually.
Increased User Satisfaction: Enhance overall user satisfaction with the loan application process. Can be tracked by soliciting feedback from users after they've completed the application process and asking specific questions about linking through Plaid vs. uploading bank statements.
By setting these measurable objectives, we can track the impact of Plaid integration on our loan application flow and ensure that it not only improves the user experience but also provides tangible benefits in terms of efficiency, accuracy, and security.
We gathered pain points by interviewing a group of customer support representatives and concluded a few key takeaways:
Through user research conducted on Usertesting.com, we identified the key values associated with Plaid integration that mattered most to borrowers.
I collaborated with our Chief Product Officer, lead developer, and a few underwriters to find the best place in the application process to request borrowers to link their bank account. We aimed to strike a balance: the chosen spot should help our underwriters assess positive cashflow without making the application too complex, which could lead to borrowers abandoning it.
I then created a proof of concept for the new section, outlining potential steps based on insights gained from studying the Plaid integration documentation. This involved aligning our user-friendly principles and streamlined usability with how the Plaid integration functions in practice.
After our company stakeholders approved the proof of concept, I designed a clickable prototype for usability sessions on Usertesting.com. The aim of this research was to identify and fix any errors and gather testers' immediate reactions.
In the usability session, we learned that testers felt overwhelmed by the amount of text on the page. Testers who felt hesitant about linking also had questions around whether their data was going to be monitored.
In response to user feedback, we emphasized simplicity and tailored the page for mobile screens to avoid excessive wording and ensure everything fits seamlessly. Adapting the pages for tablet and desktop screens was straightforward from this point. Having a mini FAQ was also helpful to provide some information about what happens when borrowers link their bank accounts.
In planning for future iterations, we engaged in discussions with stakeholders, internal users, and our data science team. Together, we identified key areas to address in the upcoming versions:
Encourage Plaid Connections: Our data science team discovered the value of training our AI model to predict a customer's ability to repay loans based on their bank data. As an attempt to gain more Plaid connections, we decided to conduct an A/B test, where in one version, borrowers were presented with the option of connecting through Plaid exclusively. If borrowers were keen on uploading manually, they can still do so through a small troubleshooting link.
Unfortunately, concealing the option to manually upload bank statements behind several screens deterred borrowers from the application. There were complaints that they should be able to upload from the get-go. We opted to abandon the A/B test and redirect traffic back to the initial design, albeit with a few improvements.
This project provided me with valuable insights into working with the Plaid API and the associated constraints. The key lessons I gained from this experience include:
By incorporating these takeaways into future projects, I aim to create a user-friendly, efficient, and delightful application process that aligns with user expectations and industry best practices.
