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The first impression is the last impression - now, whether that’s true of social interactions is a matter of debate. But when it comes to onboarding in digital lending, it’s a cold, hard fact.
The onboarding process begins at the very moment a potential borrower responds to your marketing outreach - clicking on an ad, filling a form, downloading your lending app. Considering that 40% of customers abandon onboarding processes in digital channels, it’s your first, and often only chance to convert and retain a borrower.
When reasons for abandonment range from the process taking too long to requiring too much information, lenders must optimize onboarding journeys in a way that places ease of use front and center.
Here are five best practices that will help with just that:
Minimize touchpoints: There are several aspects to this - one of the major ones is user interface (UI). When borrowers download your app, more often than not, they have gathered the information they need and are really looking to apply for credit. Simply having an ‘Apply Now’ button right in the first scroll could positively impact conversions. Next, ensure you do most of the work for the customer - we’re talking automatic photo ID capture, information prefill - anything that reduces the number of inputs in the user journey.
Build with design-led thinking: Design your onboarding journey with a mobile screen in mind, and then adapt to bigger screens. Designing for a smaller screen forces you to do away with unnecessary content and fields, simplifying the onboarding process as much as possible - think single form field per screen and toggle buttons to minimize keyboard use. Once designed for mobile phones, it’s easy to replicate the same simplified process across channels, allowing users to switch between devices without a break in the experience. Creating a consistent omnichannel experience makes all the difference.
Enable remote processes: KYC is often cited as one of the major reasons customers need to visit physical bank branches. However, when the COVID-19 pandemic hit, leaving the house was no longer an option, forcing banks to pivot to video KYC. The regulatory environment is now conducive for electronic KYC, significantly streamlining processes for both the lender and borrower. Now, users can complete this process remotely, either with agent assistance or through a digitally guided journey.
Offer an onboarding chatbot: Borrowers should feel empowered enough to navigate the onboarding journey independently. However, in instances where they do need assistance, having to contact a customer service representative can be a break in the digital journey nurtured so far. Enter conversational chatbots that could plug in these gaps and help banks save up to 30% in customer support costs. They allow lenders to deliver a personalized onboarding experience, and make it easier for borrowers to access the information they need 24X7. It’s important to keep in mind though that chatbots should mirror the warm-touch experience of interacting with a human agent.
Facilitate adaptive onboarding: Especially for new-age lenders, the speed with which they can onboard a customer is key. At FinBox, we help lenders boost conversions with adaptive journeys that require risk-optimized checkpoints. We evaluate customers on a 50+ parameter ML scale, based on which premium users are onboarded with fewer clicks as opposed to standard borrowers (who must pass through several checkpoints). The premium user journey has seen 50% lesser drop offs while the standard journey reduces NPAs by up to 30%.
A smooth digital lending journey isn’t easy to put in place. Legacy loan origination platforms and technology infrastructure can make it difficult for lenders to adapt to dynamic customer expectations and evolving credit products.
This is where FinBox’s end-to-end credit management infrastructure comes into play. It easily integrates with any loan management system, and helps convert more offline customers through digitally assisted journeys. With us, you get end-to-end funnel tracking, a nudge-driven conversion kit, adaptive checkout features, and much more.
To learn more about how we can help transform your onboarding journey, get in touch here.