Imagine the impact of cutting your lending revenue in half on your credit union. It may seem like a far-fetched scenario, but it highlights a crucial issue. With loan application abandonment rates soaring to 68%, your credit union is missing out on opportunities to cater to both existing and potential members. Dive into the following insights to discover how you can boost application completion rates.
Why is Loan Application Abandonment Important?
Credit unions offer numerous advantages. By leveraging profits to reduce fees, lower interest rates, and boost savings rates for members, your credit union gains a competitive advantage over rivals. However, if your credit union struggles with minimal loan volume, members may not enjoy these perks to the fullest extent.
To ensure the financial vitality of your credit union, it is essential to maintain a steady flow of funds. A high rate of loan application abandonment can indicate potential challenges in sustaining a thriving business for your credit union.
How to Decrease Abandonment Rate for Loan Applications
Reducing your credit union's application abandonment rate takes time and A/B testing. However, there is no better time to begin than now. Continue reading to explore strategies for decreasing your abandonment rate.
Strategically Place Difficult Questions
According the GetLeadForm, there are three types of answers that really trip up applicants. These questions are...
- Open-ended questions
- Email and phone fields
- Name fields
While some questions may cause a slight pause, it's crucial for your credit union to include them in the application process. Position these essential inquiries at a stage where the applicant is fully engaged, ensuring your credit union receives the necessary information from loan applicants.
Promote Privacy to Assure Applicants
Even with a secure platform, it's important to reassure applicants about the safety of their information within the application. Let them know that their data is protected and secure throughout the process.
- Two-Factor Authentication (2FA): Offer optional two-factor authentication for added security during the login process. This extra layer of protection can enhance confidence in the security of the applicant's account.
- Data Encryption and Storage Practices: Communicate your credit union's data encryption and storage practices to applicants, emphasizing that their information is securely encrypted and stored in compliance with industry standards.
- SSL Encryption: Ensure that your website and lending platform use SSL encryption (HTTPS) to secure data transmission between the applicant's browser and your server. This encryption protects sensitive information from being intercepted by third parties.
By emphasizing the strong security measures of your digital lending platform to applicants, you can boost their trust and ease any concerns they may have about sharing the required information to complete the loan application.
Provide Real-Time Assistance and Follow-Ups
The lack of transparency in digital lending applications can lead to frustration as applicants are left unsure about the status of their application and when to expect a decision.
Real-time feedback features, such as status updates and interactive progress bars, keep applicants informed throughout the loan application process. This enhances transparency, reduces anxiety, and improves the overall user experience on digital lending platforms.
Upgrade Your Lending Software With FLEX Digital Lending Solutions
The lending software you choose plays a crucial role in enhancing your members' lending journey. By selecting the right lending software, your credit union can better serve its members in the lending process.
At FLEX, we provide top-notch lending solutions to over 250 credit unions, ensuring a seamless lending experience for both members. Uncover how our software can revolutionize your credit union's operations. Click below to unlock the potential of our cutting-edge technology.
