Loan Renegotiation
Designing a Seamless Debt Renegotiation Tool for Nubank Users
Company
Nubank
Field
Fintech
Date
January 2020
overview
Design a self-service debt renegotiation tool to empower users to resolve financial challenges independently within the Nubank app.
Research and Discovery
The Business Problem
High loan default rates and poor results from phone-based collection efforts highlighted a gap in the current process.
Analysis of existing workflows revealed:
Phone collections were unsuccessful due to lack of trust and time commitment.
Many borrowers avoided discussing their financial struggles due to emotional and logistical barriers.
Understanding User Needs
Through stakeholder interviews, data analysis, and desk research, I uncovered key insights:
Preferred Digital Channels: Users wanted a solution that avoided direct conversations with agents.
Varied Motivations: Reasons for renegotiation ranged from unemployment to unexpected expenses, each requiring tailored solutions.
Emotional Relief: Users sought transparency and control to reduce financial stress and stigma.
Research and Discovery
The Business Problem
High loan default rates and poor results from phone-based collection efforts highlighted a gap in the current process.
Analysis of existing workflows revealed:
Phone collections were unsuccessful due to lack of trust and time commitment.
Many borrowers avoided discussing their financial struggles due to emotional and logistical barriers.
Understanding User Needs
Through stakeholder interviews, data analysis, and desk research, I uncovered key insights:
Preferred Digital Channels: Users wanted a solution that avoided direct conversations with agents.
Varied Motivations: Reasons for renegotiation ranged from unemployment to unexpected expenses, each requiring tailored solutions.
Emotional Relief: Users sought transparency and control to reduce financial stress and stigma.
Research and Discovery
The Business Problem
High loan default rates and poor results from phone-based collection efforts highlighted a gap in the current process.
Analysis of existing workflows revealed:
Phone collections were unsuccessful due to lack of trust and time commitment.
Many borrowers avoided discussing their financial struggles due to emotional and logistical barriers.
Understanding User Needs
Through stakeholder interviews, data analysis, and desk research, I uncovered key insights:
Preferred Digital Channels: Users wanted a solution that avoided direct conversations with agents.
Varied Motivations: Reasons for renegotiation ranged from unemployment to unexpected expenses, each requiring tailored solutions.
Emotional Relief: Users sought transparency and control to reduce financial stress and stigma.
Defining the Solution
Jobs to Be Done Framework
Two key user scenarios were identified:
Proactive Users: Individuals seeking to adjust their loans before defaulting to maintain credit scores and reduce anxiety.
Defaulting Users: Borrowers wanting to clear their names, avoid debt collectors, and regain financial stability.
These insights shaped the hypothesis: a self-service renegotiation flow could eliminate barriers and increase the likelihood of successful repayment plans.
Defining the Solution
Jobs to Be Done Framework
Two key user scenarios were identified:
Proactive Users: Individuals seeking to adjust their loans before defaulting to maintain credit scores and reduce anxiety.
Defaulting Users: Borrowers wanting to clear their names, avoid debt collectors, and regain financial stability.
These insights shaped the hypothesis: a self-service renegotiation flow could eliminate barriers and increase the likelihood of successful repayment plans.
Defining the Solution
Jobs to Be Done Framework
Two key user scenarios were identified:
Proactive Users: Individuals seeking to adjust their loans before defaulting to maintain credit scores and reduce anxiety.
Defaulting Users: Borrowers wanting to clear their names, avoid debt collectors, and regain financial stability.
These insights shaped the hypothesis: a self-service renegotiation flow could eliminate barriers and increase the likelihood of successful repayment plans.
Ideation and Prototyping
Collaborative Workshops
Workshops with stakeholders, including product managers, engineers, and customer service representatives, were conducted to explore potential solutions. Ideas were prioritized based on impact and feasibility.
Addressing Complexity Through Simplicity
A key challenge emerged: how to design a flow that adhered to business rules and regulatory requirements—such as mandatory down payments for late borrowers—without overwhelming users with complexity. The goal was to balance transparency and simplicity, ensuring that even users with little financial knowledge could confidently navigate the process.
Low-Fidelity Prototypes
Early wireframes and prototypes were created to test potential flows, focusing on:
A clear step-by-step process for selecting loans to renegotiate.
Flexible options for down payments and installment plans.
Transparent communication of new terms and total repayment amounts, while embedding compliance rules seamlessly.
Ideation and Prototyping
Collaborative Workshops
Workshops with stakeholders, including product managers, engineers, and customer service representatives, were conducted to explore potential solutions. Ideas were prioritized based on impact and feasibility.
Addressing Complexity Through Simplicity
A key challenge emerged: how to design a flow that adhered to business rules and regulatory requirements—such as mandatory down payments for late borrowers—without overwhelming users with complexity. The goal was to balance transparency and simplicity, ensuring that even users with little financial knowledge could confidently navigate the process.
Low-Fidelity Prototypes
Early wireframes and prototypes were created to test potential flows, focusing on:
A clear step-by-step process for selecting loans to renegotiate.
Flexible options for down payments and installment plans.
Transparent communication of new terms and total repayment amounts, while embedding compliance rules seamlessly.
Ideation and Prototyping
Collaborative Workshops
Workshops with stakeholders, including product managers, engineers, and customer service representatives, were conducted to explore potential solutions. Ideas were prioritized based on impact and feasibility.
Addressing Complexity Through Simplicity
A key challenge emerged: how to design a flow that adhered to business rules and regulatory requirements—such as mandatory down payments for late borrowers—without overwhelming users with complexity. The goal was to balance transparency and simplicity, ensuring that even users with little financial knowledge could confidently navigate the process.
Low-Fidelity Prototypes
Early wireframes and prototypes were created to test potential flows, focusing on:
A clear step-by-step process for selecting loans to renegotiate.
Flexible options for down payments and installment plans.
Transparent communication of new terms and total repayment amounts, while embedding compliance rules seamlessly.
Design and Development
Iterative Design Process
The final design offered a seamless flow:
Loan Selection: Users could choose which loans to include in the renegotiation.
Payment Flexibility: Options for down payments and installment terms, tailored to the user's financial situation.
Transparent Summary: A breakdown of repayment terms, including due dates and monthly installments.
Balancing Transparency and Ease of Use
To address the challenge of explaining legal and regulatory rules:
Visual aids and simplified language were used to clarify terms like "down payment" and "monthly rates."
Legal constraints, such as splitting late and current loans differently, were integrated into the flow without requiring users to explicitly understand the backend complexity.
Animations illustrated the renegotiation process step-by-step, reducing the cognitive load.
Design and Development
Iterative Design Process
The final design offered a seamless flow:
Loan Selection: Users could choose which loans to include in the renegotiation.
Payment Flexibility: Options for down payments and installment terms, tailored to the user's financial situation.
Transparent Summary: A breakdown of repayment terms, including due dates and monthly installments.
Balancing Transparency and Ease of Use
To address the challenge of explaining legal and regulatory rules:
Visual aids and simplified language were used to clarify terms like "down payment" and "monthly rates."
Legal constraints, such as splitting late and current loans differently, were integrated into the flow without requiring users to explicitly understand the backend complexity.
Animations illustrated the renegotiation process step-by-step, reducing the cognitive load.
Design and Development
Iterative Design Process
The final design offered a seamless flow:
Loan Selection: Users could choose which loans to include in the renegotiation.
Payment Flexibility: Options for down payments and installment terms, tailored to the user's financial situation.
Transparent Summary: A breakdown of repayment terms, including due dates and monthly installments.
Balancing Transparency and Ease of Use
To address the challenge of explaining legal and regulatory rules:
Visual aids and simplified language were used to clarify terms like "down payment" and "monthly rates."
Legal constraints, such as splitting late and current loans differently, were integrated into the flow without requiring users to explicitly understand the backend complexity.
Animations illustrated the renegotiation process step-by-step, reducing the cognitive load.
Testing and Feedback
Guerrilla Testing
With limited access to borrowers, guerrilla testing was conducted with Nubank employees simulating user scenarios. This provided quick, actionable insights while minimizing bias.
Iterative Improvements
Testing revealed that:
Simplifying terminology (e.g., avoiding terms like "edit loan") reduced confusion.
Adding a "Reasons for Renegotiation" screen at the end allowed data collection without creating psychological barriers.
Visual explanations of regulatory requirements helped users trust and understand the renegotiation process.
Testing and Feedback
Guerrilla Testing
With limited access to borrowers, guerrilla testing was conducted with Nubank employees simulating user scenarios. This provided quick, actionable insights while minimizing bias.
Iterative Improvements
Testing revealed that:
Simplifying terminology (e.g., avoiding terms like "edit loan") reduced confusion.
Adding a "Reasons for Renegotiation" screen at the end allowed data collection without creating psychological barriers.
Visual explanations of regulatory requirements helped users trust and understand the renegotiation process.
Testing and Feedback
Guerrilla Testing
With limited access to borrowers, guerrilla testing was conducted with Nubank employees simulating user scenarios. This provided quick, actionable insights while minimizing bias.
Iterative Improvements
Testing revealed that:
Simplifying terminology (e.g., avoiding terms like "edit loan") reduced confusion.
Adding a "Reasons for Renegotiation" screen at the end allowed data collection without creating psychological barriers.
Visual explanations of regulatory requirements helped users trust and understand the renegotiation process.
Results and Impact
Business Outcomes: The tool reduced dependency on phone collections, saving operational costs and increasing the number of successful renegotiations.
User Satisfaction: Users praised the intuitive interface and transparency, leading to higher engagement and trust.
Scalability: The solution was scalable, addressing multiple user scenarios with minimal additional effort.
Results and Impact
Business Outcomes: The tool reduced dependency on phone collections, saving operational costs and increasing the number of successful renegotiations.
User Satisfaction: Users praised the intuitive interface and transparency, leading to higher engagement and trust.
Scalability: The solution was scalable, addressing multiple user scenarios with minimal additional effort.
Results and Impact
Business Outcomes: The tool reduced dependency on phone collections, saving operational costs and increasing the number of successful renegotiations.
User Satisfaction: Users praised the intuitive interface and transparency, leading to higher engagement and trust.
Scalability: The solution was scalable, addressing multiple user scenarios with minimal additional effort.
Key Takeaways
Show, Don’t Tell: Balancing regulatory transparency with usability was a cornerstone of this project. Simplified visual communication—such as animations and concise text—enabled users to understand key rules without being overwhelmed.
Empathy-Driven Design: By understanding both the emotional and practical needs of users, I created a tool that instilled confidence and encouraged re-engagement.
Key Takeaways
Show, Don’t Tell: Balancing regulatory transparency with usability was a cornerstone of this project. Simplified visual communication—such as animations and concise text—enabled users to understand key rules without being overwhelmed.
Empathy-Driven Design: By understanding both the emotional and practical needs of users, I created a tool that instilled confidence and encouraged re-engagement.
Key Takeaways
Show, Don’t Tell: Balancing regulatory transparency with usability was a cornerstone of this project. Simplified visual communication—such as animations and concise text—enabled users to understand key rules without being overwhelmed.
Empathy-Driven Design: By understanding both the emotional and practical needs of users, I created a tool that instilled confidence and encouraged re-engagement.