Research for Modernization of the Personal Loan Prequalification
Catherine Hicks
User Researcher
UX Researcher
UserTesting
NerdWallet
Background
As the lead UX researcher, I directed a comprehensive research initiative to improve the Personal Loan Prequalification (PLPQ) system. The PLPQ system matches users with lenders to prequalify for loans but faced usability, trust, and transparency issues. This research informed critical updates to enhance user satisfaction and align with business goals for 2022.
Research Goals
1. Identify key pain points, usability challenges, and trust barriers in the PLPQ experience.
2. Gather actionable insights to refine system features, including loan comparison tools, data privacy disclosures, and user sign-up processes.
3. Develop solutions to improve engagement, completion rates, and overall user satisfaction.
Methodology
Participants: 9 users across two segments:
Consumers with Choice (Good/Excellent credit scores).
Participants with Limited Choice (Poor/Average credit scores).
Methods:
Moderated usability testing (two rounds via UserTesting).
Task-based analysis of the PLPQ prototype.
Affinity mapping and synthesis to derive key themes.
Focus Areas:
Usability of loan comparison tools.
Trust and transparency in data collection (e.g., Social Security Numbers).
Layout, visual design, and information hierarchy.
Key Findings and Insights
Loan Comparison Tool
Challenges:
Users struggled to locate and use the "compare" feature. Iconography and placement were unintuitive, leading to frustration.
I didn't know that there was a compare button. Its confusing and not where I would expect it to be
"I didn’t know that was a compare button. It’s confusing and not where I expected it to be."
Solution
Improved iconography, placement at the top of the screen, and clearer labeling for the compare feature.
Data Privacy and Security
Challenges
Significant hesitation around sharing Social Security Numbers (SSNs) early in the process due to fears of misuse and spam.
I'd prefer not to give my SSN at this stage - only when applying for a specific loan
Solution
Delayed collection of sensitive information until users demonstrated commitment to moving forward. Added clear explanations about data usage and security.
APR Visibility
Challenges
Users ranked APR as the most critical data point but found it poorly highlighted in the interface.
The APR should be bold and upfront because its the first thing I look at
Solution
Revised the visual hierarchy to prominently display APR details, making it easier to compare options.
Sign-Up Process
Challenges
Users found account creation early in the process unnecessary and intrusive.
I don't want to sign up before I see what's available - it feels like a waste of time
Solution
Deferred sign-up to later in the process, after users had reviewed loan options.
Overall Design and Layout
Challenges
Users appreciated simple, step-by-step designs but found some elements unclear or overwhelming.
I like this step-by-step flow - its less overwhelming than most applications
Solution
Enhanced layout clarity, reduced visual clutter, and maintained a streamlined questionnaire format.
Recommendations
Loan Comparison
Redesign the compare tool with intuitive iconography and accessible placement.
Test new designs iteratively to ensure usability improvements.
Data Privacy
Make data collection policies transparent and upfront.
Minimize the amount of sensitive data collected during initial steps.
APR Visibility
Prioritize APR information in the interface’s visual hierarchy.
Validate prominence through follow-up user testing.
Account Creation
Highlight the benefits of signing up later in the flow.
Use clear messaging to explain why an account is needed.
Design Layout
Simplify the questionnaire’s flow to improve clarity and reduce user fatigue.
Impact
Actionable Insights
Research findings guided product iterations, directly contributing to the PLPQ team’s success in meeting their 2022 goals.
Increased Completion Rates
Moving sensitive data collection and account creation to later in the flow reduced drop-offs.
Higher User Satisfaction
Improved usability, transparency, and loan comparison tools received positive feedback in subsequent testing.
