Reducing financial application abandonment in 4 steps

Reducing application abandonment in Fintech

At an average of 79.3%, abandonment is higher in finance than in most other sectors, according to SaleCycle. This is mostly due to the fact financial application forms, such as mortgage or loan applications are notoriously long and complex.

Formisimo found that consumers, on average, are expected to spend 147 seconds completing a financial application form – which, when we consider that most people are pretty short on time, is a considerable amount. And some forms can even be known to take as long as 251 seconds, with users required to fill out approximately 33 fields, during the onboarding process or further down the line.

However, there are several things finance companies can do to minimize application abandonment. To help you make significant improvements to your business, here are 4 simple and effective tips to help you reduce financial application abandonment.

Cut the jargon

A key thing to remember when you’re labelling forms and providing the content for your application pages, is that users completing your finance forms are ordinary people. If they are faced with overwhelming amounts of content that they don’t understand, chances are, they’ll give up. Instead, ensure you limit the amount of finance jargon you are using, and instead, use content that will help guide them through the process without giving them a headache.

Reduce form length

Users are busy people, and they likely have little time to sit down and complete an application form, so to ease their frustration, reduce form fields to what you consider absolutely essential. Of course, some information is vital, and without it, the application process can’t be completed, but research by Quicksprout found that reducing form fields helps increase conversions. In their study, they found that a form with 3 fields has a 10% better chance of converting compared to one with twice as many fields.

Optimize your UX

Consumers are becoming increasingly impatient when it comes to poor UX, which means finance companies must stay ahead with tools that will help improve the user experience. Type-ahead address verification is a great example of a tool that helps improve UX. Aided by fuzzy matching technology, this type of tool reduces the amount of typing required of the consumer, keeping their concentration on completing the form, while making sure the data they enter is accurate.

Show user progression

The form filling process can be a daunting one, especially if you have no idea how much more is required of you. A simple yet effective way to combat this issue is by adding progress indicators to your application form process. This is a great way for users to understand where in the process they are and gives a good indication of how much longer it will take them. This is really useful for keeping users motivated to continue with their application form, meaning higher conversions for your company.

Find out how Addressy can help you reduce financial application abandonment  

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