Why has NAB's home loan application completion rate dropped by 15% over the past month?

Introduction

The recent 15% drop in NAB's home loan application completion rate over the past month is a significant issue that demands immediate attention. As we analyze this product challenge, we'll employ a systematic framework to identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

Our approach will involve a thorough examination of internal and external factors, data analysis, hypothesis generation, and validation. We'll also develop a comprehensive plan to resolve the issue and prevent similar occurrences in the future.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a recent change in the application process. Has there been any update to the home loan application flow in the last 1-2 months?

Why it matters: Recent changes could directly impact completion rates. Expected answer: Yes, there was a minor update to the credit check step. Impact on approach: If confirmed, we'd focus on that specific change and its effects.

• Considering user segments, I'm curious about the distribution of this drop. Is the 15% decrease uniform across all customer segments, or are certain groups more affected?

Why it matters: Helps identify if the issue is universal or segment-specific. Expected answer: The drop is more pronounced in first-time homebuyers. Impact on approach: We'd tailor our solution to address the needs of the most affected segment.

• Given the current market conditions, I'm wondering about external factors. Have there been any significant changes in interest rates or housing market conditions in the past month?

Why it matters: External factors could be influencing applicant behavior. Expected answer: Interest rates have remained stable, but housing prices have increased slightly. Impact on approach: If confirmed, we'd need to consider market factors in our analysis.

• Thinking about the application journey, I'm interested in where users are dropping off. Do we have data on which stage of the application process is seeing the highest abandonment rate?

Why it matters: Pinpoints the specific part of the process causing issues. Expected answer: There's a significant increase in dropoffs at the document upload stage. Impact on approach: We'd focus our investigation on the document upload functionality and user experience.