SmartBiz Loans is an online platform that simplifies the loan application process for small business owners. It offers a pre-qualification process to determine eligibility.
Borrowers were forced to provide certain information and documents before they could move on to the next step. This often led to frustration and confusion, as many borrowers didn't have all the required information or documents at the time of application.
As a result, ~30% of borrowers abandoned the application, which slowed down the process by 2-3 weeks and decreased the number of successful loan applications.
In addition, ~25% of borrowers would email their documents directly to their Account Manager, which posed a security risk and created additional work for our team.
In order to understand the problem and better communicate it with team members, I created a current user flowchart as a visual reference:
By conducting interviews on the phone, I gathered pain points and reasons why borrowers have left the application.
Felt overwhelmed by a long application process that requires inputting a multitude of personal information or upload many documents
Had difficulty understanding the complex loan terms or financial jargon and impacted their ability to make an informed decision
Were hesitant to submit sensitive personal or financial information due to concerns about security breaches or fraud
Had a negative experience due to slow page load times, unresponsive buttons, or other technical issues
Initially, I conducted a competitive analysis focused on small business lending but found that the majority of application flows were linear in nature.
I ended up expanding my research to include financial platforms that prioritize financial management tools, rather than solely focusing on small business lending. This work includes trying out the platforms and interviewing folks who have used the platforms for start-to-end experience.
SoFi, Credit Karma, and Better enabled applicants to upload required documents or link their financial accounts at their own convenience within a few guardrails. This provided applicants with the flexibility to complete different parts of their application process without feeling constrained, making it more accessible and efficient.
I organized a collaborative ideation session with employees who regularly interact with borrowers to combine user pain points with product opportunities. I also presented them with the competitive analysis results. Then, I facilitated a voting process for them to prioritize the most desired product opportunities.
Based on the findings, it was concluded that implementing a task-based or non-linear application flow could address many of the current challenges.
Using that as a starting point, I conducted a brainstorming session with designers, product managers, and lead engineers to identify the features to be included in the new flow.
I partnered with the product manager to identify features to focus on using the Eisenhower Matrix. Urgency or importance were determined by whether it can be done manually first, and then automated later.
Next, I created a future user journey map that mapped out a task-based application flow, highlighting all the stages and touchpoints of the borrower journey.
To ensure accuracy and completeness, I validated the journey map with the product team and key stakeholders, incorporating their feedback and suggestions. This collaborative approach helped me identify areas where the current flow could be streamlined or simplified to enhance the user experience.
Then, I created a process flow to show where the task-based application experience would replace the current linear experience:
The next step was to create a user flow map on screens that borrowers may encounter for the MVP version of the project:
I met with several stakeholders and Subject Matter Experts, including engineers, lead product managers, marketing team, and the account managers who communicate with borrowers daily, to define any constraints we may have with the new proposed task-based application flow. The most common limitations and must-haves include:
To prepare for wireframing, I collected screenshots of UI designs for dashboards and sidebars and organized them into a mood board based on similarities. I evaluated their strengths and weaknesses, and then proceeded to create low-fidelity wireframes to flesh out the task-based application process. Throughout this stage, I collaborated with other designers, the product manager, and the lead engineer on the project, meeting several times a week for feedback and review.
Next, I refined the designs by incorporating our company's design system and creating high-fidelity mockups. I also collaborated with my design teammates to expand the design system to add extra necessary components.
The linear application process posed a significant challenge for borrowers and our team. The high abandonment rate and lengthy application process resulted in decreased successful loan applications and a slower overall process. The issue of emailing documents directly to account managers posed a security risk and increased workload for our team.
The implementation of a task-based or non-linear application process could significantly improve the borrower experience and streamline our team's workflow, ultimately leading to increased success rates and a more efficient process. By addressing these issues, we can better serve our borrowers and ultimately achieve our goal of providing accessible and efficient financial solutions.
Unfortunately, due to other projects being prioritized, this project never made it into the roadmap to be implemented. It would have been beneficial to involve stakeholders throughout the brainstorming process and communicate the potential benefits of this project. This could have helped to prioritize the project and allocate the necessary resources for its successful implementation. Additionally, conducting a cost-benefit analysis could have provided further justification for investing in this project.
Despite the project not being launched, the insights gained from this case study gave me valuable lessons for future projects. It is essential to prioritize the borrower experience and streamline processes to ensure a more efficient and successful outcome. By taking a task-based approach and involving borrowers in the process, we can improve the overall experience and achieve better results.
