The ‘Amazon’ Loan Application Experience

Sponsored by CUES Supplier member Fiserv

Consumers are increasingly comfortable with the idea of getting a loan online to fund a particular life event. In fact, according to Javelin, they want to! Consumers want to be able to do this with a trusted financial partner, and they expect that the experience will be similar to what they encounter on retail sites like Amazon. 

If you examine Amazon’s buyer experience, you see innumerable things to buy, but always a straightforward, seamless purchasing experience. While a shopping cart approach may or may not be suitable for your financial products, we can and should always replicate the customer intimacy found in an Amazon transaction.

Amazon has clearly worked to optimize what it knows is the most crucial moment in their customer relationship. Customers aren’t asked to fill out the same forms with each visit and, with features like 1-Click purchase, you don’t even have to tell Amazon where to ship your purchase. 

Asking a consumer for information you already have or reasonably should have is like starting the relationship over with each transaction. If you have a member approaching you to fund a major experience in their life, shouldn’t the credit union also aim to provide them with the same caliber of experience? The answer is a resounding “yes” and, if you’re serious about getting to that level of experience, here are two key principles:

A member-centric interface. Institutions should not settle for an old or complicated interface. The complexities of lending should be separated from the member experience, which should be presented as a series of simple, understandable steps. For example, while disclosures and detailed information are a requirement, these can be strategically positioned within the user journey rather than acting as an upfront hurdle in the process, which can make the borrower abandon the application.

A truly multi-channel approach. Javelin has estimated that by 2020 more than half of all account-opening applications will be completed online. Online loan applications are increasing at a lower rate, but will catch up soon. The standard for these online experiences will be the degree with which they are compatible with the borrower’s own lifestyle. An applicant needs to be able to effortlessly transition the process from online to in-person to mobile channels.

By offering a frictionless loan origination experience, your credit union will gain a relationship-building edge over others that are not focusing on this key aspect of the member relationship. 

Jeff Sonderman is senior product manager with CUES Supplier member Fiserv, Brookfield, Wis.

If you liked this post, you might be interested in attending CUES School of Member Experience™, Sept. 10-11 in Denver.