What factors are causing the increased abandonment rate for Truist's online mortgage application process this quarter?

Introduction

The increased abandonment rate for Truist's online mortgage application process this quarter is a critical issue that demands immediate attention. As we analyze this product challenge, I'll employ a systematic framework to identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

To tackle this problem effectively, I'll start by clarifying the context, then rule out external factors before diving deep into the product journey, metric breakdown, and data analysis. From there, I'll form and validate hypotheses, conduct root cause analysis, and propose a comprehensive resolution plan.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has there been any significant change in the mortgage market or interest rates this quarter?

Why it matters: Seasonal trends or market shifts could explain the increased abandonment rate. Expected answer: Interest rates have remained stable, but there's been a slight downturn in the housing market. Impact on approach: If confirmed, we'd need to consider how market conditions are affecting user behavior and potentially adjust our product strategy.

• I'm curious about the user segments affected. Are we seeing this increased abandonment rate across all user demographics, or is it more pronounced in specific groups?

Why it matters: Understanding which users are most affected can help pinpoint the root cause and tailor solutions. Expected answer: The abandonment rate has increased more significantly among first-time homebuyers and millennials. Impact on approach: This would suggest we need to focus on the needs and pain points of these specific user groups in our analysis and solutions.

• Considering recent changes, have there been any updates to the application process or UI in the past quarter that might correlate with this increase?

Why it matters: Recent changes could directly impact user experience and abandonment rates. Expected answer: A new credit check step was added to the process about six weeks ago. Impact on approach: If confirmed, we'd need to closely examine this new step and its impact on user flow and decision-making.

• I'm wondering about our definition and measurement of the abandonment rate. Has there been any change in how we track or calculate this metric recently?

Why it matters: Ensuring consistent measurement is crucial for accurate problem identification. Expected answer: No changes to the metric definition or tracking system. Impact on approach: This would confirm that the increase is real and not a result of measurement inconsistencies.