In a world where convenience and speed define our digital interactions and product success, traditional loan application processes are being reshaped by forward-thinking lenders able to leverage these. According to Experian, up to 97% of online banking applications are abandoned (1) – It has never been more important for lenders to keep customers engaged with a seamless and transparent product journey.
This 3-part article series will explore the digital transformation behind consumer lending and uncover how newer market entrants are enhancing the borrower application journey, boosting consumer confidence and driving higher conversion rates. Part 1 will focus on what lenders can do to enhance loan pre-approvals with their existing customer base. In part 2, we investigate how lenders can improve new customer acquisition through improving the application journey with a quick quote facility, and part 3 examines how the personal lending customer experience could be enhanced with further mobile optimisation.
Power-Up Pre-approvals
Pre-approval for consumer finance products has been around for a while and there are several ways in which lenders can improve the experience further, with the potential to increase customer engagement and the percentage of completed applications. Below, we discuss 4 such strategies:
Pre-approvals are an important customer acquisition technique, and they primarily focus on encouraging existing customers to explore more products. In part 2, we look at how the most innovative lenders are acquiring new customers with more transparent pricing techniques.