8 things you didn't know effected your IAV conversion rates and how to solve them

Safety is not first 

It seems counter intuitive, but multiple mentions of how safe a process is, plus an emblem of your super high tech security badge, has the opposite effect. Those flashy reassurances only cause the borrower to be more likely to run for the hills than to continue on course. That’s not to say you can’t proudly display your compliance and security certifications, you worked hard for those. However, if you’d like your conversion rates higher than winter temperatures in Michigan, you will want to keep mentions of encryption and security in a link posted inconspicuously on the page as opposed to emblazed along the way.  You could also consider adding it to your footer if you just can’t bring yourself to squirrel it away. 

The fewer words and instructions you have on a page the more likely the borrower is to read and proceed. Unless you happen to have a pool of bibliophiles as your customer base, very few people want to feel like they have to read a novel to get through what should be a simple process. Cluttering a page with verbiage makes the call to action appear more complicated than it is and does not make the journey more appealing. Keep it clean and to the point with only the verbiage that is deemed absolutely necessary, and yes, sometimes that does mean rolling up the sleeves with your compliance team. The numbers will be worth the fight in the end. 

 

Listing your call center number prominently at the top of the application page, and in the header, and in the footer, is telling your customers not to step through the IAV process. It’s reiterating in 10-point Calibri font that you want the borrower to call you instead of verifying their banking information. We both know that you don’t want them to focus on anything but the next step in the digital process, leaving your agents available to spend time on borrowers who actually need assistance or functions that move the deal forward.  If a customer really needs to contact you, they will always find the phone number.  Try listing the number one time in the header or footer and you will not only increase conversion rates you will also lessen the unnecessary calls to your call center. And that right there is worth the effort alone. 

 

Start them off on the right foot 

Anything you can do to set your applicant up for success is worth its weight in gold. Prepopulating the bank for the borrower for example, allows them to go straight to the login screen (a DecisionLogic exclusive feature). That simple act can make their actions a 1 or 2 step process to login (depending on if they have security questions). It may seem small but facilitating them to move through the system faster and with less friction is a game changer and conversion booster. It also reduces human error by at least one more step, and couldn’t we all do with a few less of those? 

 

Do you know who your top banks are? That is to say, do you know what financial institutions are most commonly used by your clients? (If you aren’t sure, that’s ok. Our support team is happy to help you figure this out.) This is a much more crucial piece of information to know than most people think. This comes into play in a few places. First, if you know your top 10 banks and one of them has their system go down you will be ahead of the game knowing to skip the digital verification and go the dreaded old-fashioned paper bank statement route until it gets fixed. This will reduce some of the friction for your client (do you see a pattern here?), so they are not getting frustrated trying to step through the IAV process if the bank is down.  

 

Second, if you know your top institutions you can request prioritized connection assistance from your IAV provider should you see that conversion rate dip. Digital bank statement providers have thousands of financial institutions to keep tabs on and the banks that are important to you, if not one of the major banks, may not be important to the rest of the client base. This is where the squeaky wheel gets the conversion. Speak up. Sometimes these items can be resolved quickly and you’re back on track in no time. Other times it’s part of a much bigger issue and you will be glad you flagged and got the work started.  

 

They always say, “the devil is in the details”, and when it comes to conversion rates this is spot on. If you don’t have an in-house data analysis team, you may be able to ask your IAV provider to assist you in finding the high friction/drop out points in your workflow. This is something DecisionLogic offers all of its clients and has proven immensely effective, increasing conversion by up to 18% in some cases. This is not to say that there is anything wrong with the waterfall you poured hours into building. You may have built the perfect waterfall for 2010. Unfortunately, borrowers now are not the same as when your immaculate workflow was built. What was not an issue yesterday is a massive blocker for today. And even if you aren’t seeing any major issues, sometimes just another set of eyes can make the whole user journey just a smidge shinier resulting in some extra boost on conversion rates. What do you have to lose? 

 

Yay, compliance! Who doesn’t love compliance? Let’s be honest, other than auditors and your security team, no one loves compliance. It’s complicated, constantly changing and cannot be ignored or side sidestepped at all, ever.  That said, we live in an awesome time where we can have other products help us keep track of this or satisfy some requirements entirely. For example, using IDV (an Identity Verification tool) at the same time as sending an IAV request can make your KYC (know your customer) life so much easier with just one product. This also can reduce friction for you, the customer, and fulfill FCRA (Fair Credit Reporting Act) compliance to make those pesky auditors happy. This is something we offer here at DecisionLogic but check with your IAV provider to see if this is available. It also cuts down on vendor management if you can do it all in one place which your accounts payable department will love. 

 

Constantly reviewing your conversion rates, and workflow is an ongoing process. From making sure your user journey is optimized reducing friction for changing borrower’s needs, to the inevitable bobbing and weaving required to stay up with the nature of the lending industry. Which as you know changes with the economy, season, new technologies, banking standards, compliance regulations and a whole host of other things. It’s a full-time job, but if you have the right vendor partners who help look out for your business needs, it’s a whole lot easier.