The Power of Simplicity: Boosting Application Completion Rates

In the Credit Union and banking sector, many institutions structure their applications to present users with all options at once, often overwhelming applicants and leading to abandonment. Even existing members are frequently required to input information that the institution should already possess.

When a loan application bombards applicants with too many choices, it can create confusion. Instead, it's an opportunity to guide them toward comfortable decisions.

Research shows that prospects complete at a higher rate when information is requested piece by piece, especially with an obvious justification.

For instance:

1. To get started, how much do you want to borrow -> $35,000
2. Great, what’s your email address? -> Jack.White@whitestripes.com
3. Perfect. Are you buying a new car or a used car -> New
4. Sounds good. For our best rate, we will want you to put 10% down, which is $3,500. Does that work -> Yes
5. For the lowest payment, we recommend a 72 month loan. Do you want the lowest payment? -> Yes
6. Alright. Click next to provide us with some details on the car you want to buy and some personal information -> Go

If a prospect drops out after providing information up to step 1, they've still offered valuable data for personalized follow-up via your CRM. It's akin to an offensive rebound in basketball—a second chance at no extra cost.

Once the prospects have gone through these steps, they are vested in the outcome. This data is now in your CRM, and you can send them to MeridianLink in an optimal state, where the information is prefilled and the app is hot and ready.

Some additional tips are:

• Prefill as much data as possible about the applicant, especially if they are an existing member.
• Automatically calculate the minimum down payment based on your underwriting policies. If your maximum loan-to-value ratio is 90%, set the minimum downpayment to 10% x requested loan amount.
• Utilize drop-down menus with 3-4 options max with a prefilled-in default over a free-form field. For example, offer 36-48-60-72 months for the term with the default at 72. Don't ask the prospect to do math!

The ultimate aim is to ensure that applicants successfully complete the application process, minimizing any potential burdens along the way. Keeping in mind the KISS principle (Keep It Simple, Stupid), it's essential to understand that prospects are seeking a car loan, not undergoing an IQ test. Ensuring that the process is straightforward enough for a fifth-grader to navigate will yield remarkable results!