How would you measure the success of Lending Club's personal loan application process?

Introduction

Measuring the success of Lending Club's personal loan application process is crucial for optimizing user experience, improving conversion rates, and ultimately driving business growth. To approach this product success metrics problem effectively, I'll follow a structured framework that covers core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context

Lending Club's personal loan application process is a critical component of their online lending platform. It's the primary funnel through which potential borrowers enter the system, submit their information, and receive loan offers. The process typically involves:

1. Initial application: Users provide basic personal and financial information.
2. Soft credit check: Lending Club performs a preliminary credit assessment.
3. Loan offer presentation: Users receive potential loan terms based on their profile.
4. Verification: Applicants submit additional documentation to verify their information.
5. Final approval and funding: Loan is approved, and funds are disbursed.

Key stakeholders include:

• Potential borrowers seeking personal loans
• Lending Club (business and shareholders)
• Investors funding the loans
• Regulatory bodies overseeing lending practices

The application process is central to Lending Club's peer-to-peer lending model, directly impacting loan originations and revenue. It competes with traditional banks and other fintech lenders, differentiating itself through a streamlined online experience and potentially lower interest rates.

In terms of product lifecycle, the personal loan application process is in the mature stage, with ongoing optimization efforts to improve efficiency and user experience.