Modernizing Mortgages: How One Credit Union Transformed UX

Facing inefficiencies with 28-year-old mortgage software, a major Alberta credit union embarked on a modernization journey.

By integrating modern solutions and engaging power users, they reduced mortgage application times from 60 minutes to 15 minutes, achieving 90% user satisfaction. This transformation not only streamlined workflows but also set a new standard for operational excellence and customer experience.

Background

A leading credit union in Alberta, like many banks, relies heavily on loans as their largest income source, with mortgages being one of the most common types.

The credit union faced significant challenges due to their reliance on outdated software for most loan origination processes, particularly mortgage pre-approvals.  The software, designed 28 years ago, lacked a dedicated workflow for pre-approvals, forcing users to develop inefficient workarounds. A previous attempt to address this with an out-of-the-box solution led to low adoption rates.

Recognizing the negative impact on revenue and increasing user frustration, the credit union sought to reduce application time and improve efficiency. As a trusted long-time client, they partnered with Lantern to identify areas of improvement and streamline the mortgage pre-approval process.

The Challenge

The legacy software posed several challenges:

• Limited Support and Developer Familiarity: The outdated system had limited support and few developers who understood its intricacies, making continuous maintenance difficult.
• Inefficient Workflows: The process required extensive manual data entry and frequent switching between multiple applications, leading to inefficiencies.
• Low Adoption Rates: Previous attempts to improve the system failed due to lack of user engagement, resulting in continued low adoption and user frustration.

The Solution

To address these issues, we focused on:

• Engaging Power Users: We conducted extensive user interviews to understand the specific pain points and needs of those who used the system daily. Throughout the project, we committed to keeping users updated on our progress–meeting with them monthly to encourage valuable and open feature discussions with our team.
• Integration Strategy: The new solution merged the old app with modern software and included crucial third-party integrations. This was essential for handling credit checks during the pre-approval application, ensuring data security and maintaining customer trust.
• User Interface Redesign: The interface was overhauled to be more intuitive and visually appealing. Our redesign aimed to update and simplify interactive components, therefore reducing cognitive load, and making it easier for users to navigate and complete tasks efficiently.

The Implementation

Key steps in the implementation included:

• Simplifying the Workflow: By reducing manual data entry and minimizing app switching, the new system made it easier for users to complete mortgage pre-approvals.
• Ensuring Data Security and Compatibility: We prioritized data security and ensured that the new system was compatible with their existing tech stack. This involved addressing third party integrations, protecting data privacy and conducting thorough QA testing.
• Automating Data Entry: Automation reduced the risk of errors and improved the accuracy of the information entered, which is critical for mortgage pre-approvals.

Benefits Realized

The new system delivered significant benefits:

• Reduced Application Time: The time required to complete mortgage pre-approvals was cut from 60 minutes to 15 minutes or less, greatly enhancing efficiency.
• Improved User Adoption: With a 90% user satisfaction rate and an intuitive interface, users adopted the new system quickly and with minimal training.
• Streamlined Workflow: Integrating core applications reduced redundant data entry and minimized the need to switch between different apps, making the process more efficient.
• Enhanced User Experience: The clean, visually appealing interface reduced cognitive load, allowing users to focus on providing a better experience for applicants.

Pilot Testing and Feedback

The credit union conducted a branch pilot across the province, gathering feedback from 20 respondents. The results were overwhelmingly positive:

• Intuitive Functionality: 90% of users found the new system intuitive, even without additional training.
• Interface Appeal: 95% of users praised the clean and visually appealing interface.
• Application Efficiency: Application times were significantly reduced, confirming that the new system met the project’s main objectives.

Conclusion

The credit union’s modernization journey demonstrates the power of user engagement and system integrations.

By listening to their users and addressing their pain points, we developed a solution that met their needs and improved overall efficiency.

This transformative project not only enhanced user satisfaction but also positioned the credit union for future growth-highlighting the importance of understanding user workflows, integrating core applications, and simplifying interfaces to achieve successful outcomes.