Why has Santander Bank's mortgage application completion rate declined by 15% compared to the same period last year?

Introduction

Santander Bank's 15% decline in mortgage application completion rate compared to last year is a significant issue that requires immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term and long-term implications for the bank's mortgage business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this decline been consistent across all months, or is it more pronounced in certain periods?

Why it matters: Seasonal patterns could indicate external market forces rather than internal issues. Expected answer: The decline is consistent across months. Impact on approach: If seasonal, we'd focus on market trends; if consistent, we'd look more closely at internal factors.

• Considering user segments, I'm wondering if this decline is uniform across all applicant types. Are we seeing any differences in completion rates between first-time homebuyers and those refinancing or purchasing second homes?

Why it matters: Different user segments may be responding to different factors, helping us narrow down the cause. Expected answer: The decline is more pronounced among first-time homebuyers. Impact on approach: If segment-specific, we'd tailor our solutions to address the needs of the most affected group.

• Thinking about recent changes, have there been any significant updates to the mortgage application process or system in the past year?

Why it matters: Recent changes could directly impact user experience and completion rates. Expected answer: A new online application system was implemented six months ago. Impact on approach: If recent changes are involved, we'd focus on usability and technical issues related to the new system.

• Considering data integrity, I'm curious about our measurement methods. Has there been any change in how we define or calculate the completion rate metric?

Why it matters: Ensures we're comparing apples to apples and not facing a data anomaly. Expected answer: No changes in metric definition or calculation. Impact on approach: If changes occurred, we'd need to recalibrate our analysis based on the new methodology.