What are the common mistakes when designing a loan application form for a FinTech service?

1 Mistake 1: Asking for too much information

One of the main benefits of FinTech is that it can offer faster and easier access to financial services than traditional banks. However, if your loan application form asks for too much information, you are defeating this purpose and creating friction for your users. Users may feel overwhelmed, frustrated, or suspicious if they have to fill out a long and complex form, and they may abandon the process or switch to a competitor. Therefore, you should only ask for the essential information that you need to verify the identity, eligibility, and creditworthiness of your users, and use clear and concise language to explain why you need it.

4 Mistake 4: Not complying with regulations and standards

FinTech services are subject to various regulations and standards that aim to protect the rights, privacy, and security of users and providers. For example, you may need to comply with the General Data Protection Regulation (GDPR) in the European Union, the Fair Credit Reporting Act (FCRA) in the United States, or the Payment Card Industry Data Security Standard (PCI DSS) globally. If you fail to comply with these regulations and standards, you may face legal actions, fines, or reputational damage. Therefore, you should familiarize yourself with the relevant laws and rules in your target markets, and ensure that your loan application form follows them. For instance, you may need to obtain consent, disclose information, or encrypt data.

5 Mistake 5: Not testing or iterating your form

Designing a loan application form is not a one-time task, but an ongoing process that requires testing and iteration. You cannot assume that your form will work perfectly or meet the expectations and needs of your users. You need to test your form with real users, using different methods, such as usability testing, A/B testing, or analytics. You need to collect and analyze data, such as completion rates, drop-off rates, error rates, or feedback, to identify any problems, issues, or opportunities. You need to iterate your form based on the data and feedback, and make changes or improvements. You need to repeat this cycle until you achieve your desired outcomes and goals.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?