Strategies, Best Practices and Thought Leadership

Why Everyone Wins with Customer-centric Online Loan Origination Software

When it comes to increasing your borrowers (and growing loan profits), tactics like slashing costs and offering discounted rates will only get you so far. Real opportunities come when you start to leverage the right technology solutions.

Too often, for example, when banks and credit unions implement loan origination software solutions, they prioritize their staff’s wants over the needs of those actually filling out the online loan applications. But, the best-designed loan software for lenders delivers a no-nonsense experience that helps both financial institutions and their customers.

A good user experience leads to a good ROI

When you create an online experience that puts your customers’ needs first, this is known as user experience, or ux.

How often do you enjoy filling out an online form? For a lot of us, it’s a task we put off because most online forms are tedious and poorly designed. That’s one reason why the most effective online loan applications are the ones that aren’t burdensome, overly time-consuming, or overwhelming. They’re only as complicated as they need to be.

Simplify for success

Famed architect Mies van der Rohe is almost as famous for his “less-is-more” dictum as he is for his modernist architectural masterpieces, and when it comes to UX best practices for developing online forms, his philosophy serves as an invaluable guidepost for optimization.

Just as you take steps to please your customers through other interactions, you should also make a point to ensure your online lending application process is as painless as possible too. You’ve got to create an optimal user experience if you want to create happy customers.

Here are a few ways you can get started—

Remove any “optional” or marketing-focused fields. Don’t make your loan applicants spend extra time answering distracting, ancillary questions. Instead, collect only the bits of crucial information your financial institution requires to process an application.
By eschewing any inconsequential, ancillary questions from your online loan application, you will:

  • reduce how many forms get abandoned before completion
  • show your customers you respect their time because you’ve made it easier for them to complete the application

Learn other ways you can improve ux with content strategy »

Rethink how you collect information. When it comes to crafting an ideal user experience, seconds add up. Once you’ve gotten your form down to only the must-include questions, review your online loan application and look for ways you can reduce the number of clicks it takes for an applicant to respond to each question, and then make appropriate formatting swaps to your form (as long as these changes don’t compromise clarity).

For example, it’s quicker for users to choose an option from a trio of radio buttons (one click) than it is for them to open a drop-down menu and make a selection (two clicks).

Use auto-fill whenever possible. You can increase efficiency even more by setting up your loan origination software to gather additional information about your customers (from other sources, like public and governmental databases) in the background once they’ve identified themselves. It’s easier (and faster) for loan applicants to verify the accuracy of auto-filled information than it is for them to take the time to enter these sorts of details themselves.

Solve real problems from real customers

The details matter.

In today’s competitive online lending environment, to truly succeed your financial institution must invest in implementing user experience best practices, like choosing the right wording, fine-tuning your design, and creating a seamless workflow.

When banks and credit unions take “customers-first” approach and customize their loan origination software around the needs and problems of their loan applicants, it’s a true competitive advantage that will pay off in the long run.

Simply integrating an out-of-the-box loan software for lenders product isn’t efficient and won’t convert as well as an uncluttered, tailor-made solution.

Baker Hill’s revamped online loan application solution is here to help you make the lending process easier, faster, and more transparent for loan applicants. With our easy-to-configure, uncluttered online solution, you’ll be more competitive, stay compliant, and mitigate risks involved with making credit decisions.

Want to see how our loan origination software can transform your online lending process?

Schedule a demo consultation »

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This is a guest blog post by TBH Creative, an Indianapolis website design company and digital marketing agency. Since 2004, TBH Creative has helped hundreds of companies across a wide range of industries leverage the power of the Internet with results-driven websites and comprehensive marketing solutions.

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Topics: Online Lending

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