When it comes to mobile and online lending, it’s not enough to just have a presence. Competition grows exponentially by the day as technology evolves, consumer demand shifts, lending strategies expand and new opportunities arise. Technology obviously plays a major role as institutions must have loan origination systems that provide necessary levels of automation and configurability to maximize efficiency and profits, but the platform can’t do it alone. Financial institutions need to streamline and configure their operations so that the technology can do the heavy lifting.
To help illustrate this point, here are a few best practices to help ensure your online web application is providing the most ROI for your portfolio:
- Test versions: This is an absolute must-have for any system. Having a corresponding test instance of each live version of your web application allows your institution to properly test changes before they are published into production. If tests go according to plan, then your system should allow for a user-friendly process to copy your configurations from test to your production version. This sandbox, as it is sometimes called, also doubles as a backup for your live version.
- Simple is better, less is more: Remember, it’s all about the consumer. Institutions sometimes forget this when choosing which and how many fields to include in the application process. Asking for too much information can lead to higher abandonment rates. Keeping the application short allows for quick submissions. Capture enough information to pull credit and evaluate their capacity and then render approvals that are contingent on other conditions. For example, asking for collateral up front is not always needed if you stipulate conditions related to the vehicle LTV or the residence having a valid appraisal, title, and flood search.
- Hint text: As a consumer is working through the application process, consider what help might be needed and provide instructions using hint text. As with anything, balance is the key. Overdoing it can be annoying, but leaving critical information out can lead to confused applicants who ultimately abandon their applications. Use it only where it makes sense. As an example, you clearly don’t need hint text on fields for the first and last name, but you may need to explain a field for a branch to clarify that what is selected will represent the location where the loan will be closed.
While these suggestions are hardly groundbreaking or radical in nature, they sometimes get overlooked as institutions configure their online channels. Consumers are sometimes very quick to abandon a possible opportunity if they’re being asked to endure a tedious application process. So these three reminders will help your institution increase efficiency both internally for implantation of program changes as well as on the consumer’s end.
As we stated earlier, it’s impossible to ignore that the technology you leverage still plays a major role. If your loan origination system isn’t fully equipped to handle the functionality listed above as well as the robust decisioning capabilities you’ll need for an effective online presence, then competing for business via the Web will be even more difficult.
The CRIF ACTion platform offers as much or as little configurability needed to go with unmatched online and mobile functionality to drive growth opportunities for lenders of any size. In fact, the upcoming HTML5-enabled release of ACTion⁺ 6.0 will allow loan officers to be untethered from a traditional desktop and process loan applications with a more digital and wireless process. We will be hosting a webinar at 2 p.m. ET, Wednesday, June 28 that will include a live demo of this upcoming release to showcase the following features:
- Responsiveness for any mobile device
- A modernized look and feel
- In-line validations
- A contemporary, user-friendly experience
We will not only show you how this new functionality will improve your lending performance, but we will also welcome any questions you might have regarding this upcoming release. To register for this webinar, please click the button below.
Photo Credit: Didriks