From stigma to empowerment — the evolution of loans through FinPy

With this inspired case study, it is not in my intention to simply pretend that a UI change increased adoption and retention by a significant percentage, but to discuss in detail the three big problems that were identified through real-time CX, as well as how personal criticisms of the business model led me to ask the right questions.

This section generally talks about how we initiated the MVP to get into the market. We made sure to involve users at every possible major research process.

Research Goals

Target demographic overview

Understanding our users was critical. Our initial research revealed a deep-seated apprehension toward formal loans. The demographic data highlighted a strong preference for peer-to-peer lending due to its perceived flexibility and lower barrier to entry. This shaped our core product strategy.

Research Methodology

Target Audience

User Needs & Pain Points

We scheduled and conducted online interviews by sharing interview guides and using screen sharing. In addition to online interviews, we also conducted offline interviews face-to-face to observe non-verbal cues, foster deeper engagement, and build rapport with participants.

Benchmarking the saturated market

In order to create a competitive and differentiated product, we conducted extensive benchmarking. The personal loan app market was highly saturated. We found it difficult to find a unique value proposition. By placing a strong emphasis on personalization, transparency, and speed, we aimed to create a compelling offering.

We focused on creating user flows that embody simplicity, personalization, and transparency. By leveraging user data, we personalized the journey, tailoring credit limits and loan terms to meet each user's unique financial needs.

Transparency played a vital role in our design philosophy. We clearly communicated loan terms, including interest rates, fees, and repayment schedules, empowering users to make informed decisions.

Throughout the development process, we conducted rigorous testing, gathering user feedback and continuously refining our design based on their input. This iterative approach ensures that FinPy delivers a user-centric experience.

This section generally talks about how immediately we jumped to the customer experience to ensure each movement is tracked and evaluated. We learned that traditional approaches to problem-solving do not always work.

Finding the real problem

As the product started to expand, we started to see a certain pattern. There were a few defaulting profiles and people who had really less income but somehow they were choosing the minimum tenure for the loan repayment. When we ensured that yes this is a real problem we tried to divide it into two parts but solve it simultaneously.

What could be done and what should be done?

Firstly we wanted user to clearly see what all tenures are available to them as per their profile and yet do not make them feel bad for this. So we should involve some white-hat gamification. Secondly, we wanted to promote business which means we intend to maximise our loan tenures without enforcing the user.

Solution Hypothesis

We designed it in a way where we would not say that these options are unavailable, but are locked for you - which can be opened if you do this thing. It is like providing something free yet having an option which if you want it you have to put some efforts on it.

Metrics (Success/Failure)

Finding the real problem

When customers provided their account it was not a salary bank or salary bank statement. We assumed users were concerned about privacy. However, when we talked to the customers, this wasn’t the problem. The real problem was that the users were not able to see in the hurry that the salary bank account details are needed.

What could be done and what should be done?

'Positive Friction' a concept which is often overlooked in the likings of making the designs too user-friendly. Easiest user interfaces and the shortest routes aren’t always the best when it comes to design- especially in the fintech domain. When we add an added layer of step to re-assure the user, it leads to a more trustful and secured visualization.

Solution Hypothesis

Instead of cluttering the information on the same screen, create a whole new screen. This could be done through step by step animation on one full screen, and the CTA remains inactive for a certain duration to make sure the user reads the information before proceeding.

Metrics (Success/Failure)

Finding the real problem

When the user repays on time- he gets to feel nothing. There is no fun element. What’s next? And how to keep them keep coming to the app? How to instil mouth-of-word? How to introduce a bit of gamification?

What could be done and what should be done?

We should reward the customer who is loyal and is showing good behavior so that they can stick with us longer. And get to feel so good that they feel like sharing this to the world. This could happen with increasing their credit line allowing us enjoy more loan transfers from the customers who have proven trustworthy.

Solution Hypothesis

Create a compelling and exciting UI that provokes a feeling of achievement. This could be done via an animated badge with a superhero feeling. No personal information about the limit or loan would be shared, just the idea about a good behavior would be promoted.

Metrics (Success/Failure)

In conclusion, the UX case study aimed to improve the user experience of our product by redesigning the user interface. Through thorough research and testing, we obtained valuable insights that guided our design decisions. By prioritizing the user experience and leveraging the insights gained from this case study, we can confidently move forward in creating a product that meets the needs and expectations of our users while driving business success.