The personal loan landscape is often falling behind other products when it comes to the in-app mobile customer journey. For the loan application, most banking apps now lead customers to a mobile web page, and some of the less developed personal loan markets have far too many incumbent players requiring customers to visit a branch for identity verification. This leaves a large opportunity gap, and according to Experian, most consumers now prefer to use digital banking options rather than visiting a branch (1). Only a limited number of lenders, such as Monzo in the UK, are leading the way in allowing the customer to complete a loan application fully in-app.
Further, the in-app customer journey can be enhanced beyond the loan application process. It is becoming more common for pioneering lenders to offer an increasingly complex product, with features such as the ability to top-up a loan mid-term or make additional repayments at any time with no charges, thereby shortening the loan term or reducing regular repayments. However, when it comes to making use of these features, customers are too often required to log in to their online account on a web browser or call or email customer services. This can be both labour some for the customer and costly to the lender.
To optimise the mobile experience, and keep up with the market's innovators, as a lender, you can consider implementing the following into your product offering:
The ability to apply for a loan and make use of new product features, including requesting payment holidays and changing repayment periods, all within a mobile application, can help meet customer expectations around mobile convenience and give them more control over their finances. This can improve overall product satisfaction, increasing customer loyalty and retention.