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It’s Time to Refactor Refinance

It’s Time to Refactor Refinance
August 26, 2022 | 8mins Read

Where refinance is at today

The Covid-19 pandemic changed a lot of things for a lot of people, but it was also filled with opportunities. One of those opportunities being revitalization of the affordability of debt across liabilities. Meaning with the right refinancing, many borrowers saw a massive drop in APR/APYs, a lower monthly payment, and a shot of adrenaline to their bank accounts. 

We’ve seen lenders reporting year-over-year growth of 10x in volume and customers. This massive uptaking in an outdated process has driven a keen review of the user experience in this process to help simplify, speed up, and increase conversion rates of users entering and finishing with the refinance monolith experience. 

To put it simply, authenticity and relational understanding of users is rarely a top priority within the world of banking. Refinancing is no different, and we see constant proof of this in multiple avenues:

  1. Impersonal and endless offer walls filled with high level data that lacks finesse and relevancy to end users who are actively searching to improve their financial situation. 
  2. Slow communications, lack of supporting education and resources, and old-fashioned banker first personalities
  3. Low-tech, hard to maneuver paperwork and written-check balance transfers to finalize the process

This much needed review of depression-era refinancing is changing an age-old ideology and process. It’s about time. 

It’s time to refactor refinance

Personalize the experience

Data exists at every turn of every corner. It is a low-effort uptaking for a business to offer their users a simple to complete, low-churn experience to connect to their liabilities and make their data readily available at a tap of the screen or a click of the mouse. This allows for a seamless and quick presentation of available offers from the industry’s top lenders – and they’re all personalized to the borrower. No more hunting. No more guessing. No more waiting. Offer walls are a thing of the past, let’s leave them there. 

Users deserve offers that make sense, and they should have access to reliable and relevant information at a glance that fits snugly in their debt landscape. Imagine, you can quickly determine savings on your current loans, look at offers within your price range and in-line with your financial goals, and maneuver quickly through the experience from initial investigation through final payment directly to your loan. 

Incentivize the borrower

Borrowers today are not only some of the most educated, but they have endless resources at their fingertips. Setting yourself apart from the competition product wise means leveraging not just the personalization of a streamlined and easy to use experience, but it also requires some incentivization. Shiny objects draw attention because they hold value – do everyone a favor and make sure your shiny objects also provide value.

Connections and data to the borrower also means you can offer explicit and personal incentives to help with their other forms of liabilities. Hop on the bandwagon and digitally gamify an experience that’s typically buried in mountains of paperwork. Take a bite out of creativity and have some fun building an experience that makes everyone happy. Offer business points off of interest for speed to finalization. Hook somebody up with an Amazon gift card for getting one of their liabilities safe and sound in your hands. 

Build revenue generating business for your partners

Ahhh, the most beautiful part of the whole process – GET PAID to add value and increase end-user satisfaction. Driving volume through the funnel doesn’t just mean happy borrowers with better debt and more manageable loans, it also means you have the chance to add some cash to your bottom line. 

Extra cash per user could be that office pizza party you’ve been waiting for – and at a 10x growth year-over-year maybe even an office pool party or a cruise giveaway. You can literally be net positive on a process that improves the borrower experience. Do yourself a favor, give your budget a nice little boost and make life easier across the board. OH, and did I mention you can integrate in a day? A single day. And that integration unlocks some pretty large doors. 

Here at Spinwheel, we’ve built our debt API technology to enable you to refactor refinance in a way that’s painless, easy to implement, and designed with user experience at the forefront. If you’re excited about improving the refinance experience, we’d love to help. 


About the author: Spinwheel is on a mission to make it easier to manage debt. Our Loan APIs make it easy to embed consumer loan data, including credit card debt, student loans, personal loans, auto loans, and mortgages, directly into your app or product. With just one connection, you'll be able to help your business and your users improve financial outcomes. We call this Better Debt. Read More >

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