For all those who work in the financial services sector this is a great article which explains form/application abandonments from the financial services/product pages.
In a study conducted with Forrester Research, Inc. that examined consumer motivations in abandoning applications for online financial products, including checking accounts, savings accounts, credit cards, auto insurance, brokerage accounts, mortgage loans, home equity loans, and personal loans.
The study, which revealed that 54 percent of online financial product applicants abandon applications prior to submitting, examines some of the reasons why these abandoners chose not to complete the application online. The study was based on behavioral data from comScore’s panel of more than 2 million people worldwide, plus an email survey of 568 applicants who had abandoned an application for a financial product online.
Of those who initiated an online financial application but did not submit it, 49 percent said that they had no intention of completing the application. This percentage was higher for deposit product applicants (58 percent) and substantially lower for credit card applicants (32 percent).
The top reasons cited by those who did not intend to complete the application included:
Wanted more product information (23 percent)
Not ready to apply (19 percent)
Wanted to see if they qualified for the product (14 percent)
Those who started an application with the intention of completing it, but who ended up abandoning the application cited the following reasons for not completing the application:
Changed their mind about applying online (12 percent)
Had privacy/security concerns (11 percent)
Wanted to speak to a sales person regarding the product (11 percent)“As more consumers research and purchase financial products on the Web, the importance of understanding application abandonment will increase,”
said Forrester Research Senior Analyst Brad Strothkamp. “This study provides clear evidence that today’s financial services sites have a ways to go at both understanding and solving this important issue.”
Content Courtesy: Comscore
Complete article with full report link Here
Wednesday, September 19, 2007
online financial product applications - abondonment
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4 comments:
Nice study wrapup !!
The real problem with financial product application it's the transposition of the financial institution (FI) complexity to application process. FI's website merge all its services (insurance, credit card, funds...) and present those as a whole one stop shop, but in reality they are from different branches with different process and database. So, when users make products applications online they are confront to this reality in there application process: too many step, too many blank to fill, different form application, non-linear process evolution. That's too much to someone who has average knowledge of financial products.
FI should K.I.S.S (keep it simple stupid) like when you meet your financial counselor : all blank are filled and just have to sign at th bottom of the application form!
Hey Jean - Sebastien
thanks for the Comment, appreciate your thoughts
however when you say "FI's website merge all its services (insurance, credit card, funds...) and present those as a whole one stop shop"
dont you think that's a standard practice for any of FI? Just curious what can be other options ?
and about FI keeping it simple! totally agree with that!
Thanks again!
Anil
It is a almost a standard in Canada. The problem is more about branches management. They can't share they database, they are working in silo, so data don't thru all branches. To prevent that, they show their own form in an product application process. At the end, user is confront to many unstandardized forms in ONE process!
JS
oh i see ok
indeed confrontation in this situation exists, thanks again for your insight, really helpful
Thanks again, appreciate it
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