Instalpay - from zero to hero

What

InstalPay, a project for interest-free instalment plans for renewable energy products my team and I crafted from zero. 

Instalpay offers CommBank customers transition to renewable energy by allowing them to buy and install products such as solar panels and batteries. Our approach was fuelled by extensive customer feedback, thorough data analysis, and a dedication to improving user experience while meeting the changing demands of users and businesses alike.

The problem

Multiple buy now pay later (BNPL) products in the Australian market catering for low value transactions and short-term fixed instalment repayments. 

Few competitors in the market providing customers interest free solutions for mid-high value transactions repaid over a longer time period. 

Analysis indicates that ~39k CommBank customers make a monthly repayment amounting to ~$21.7M each month to Plenti or Brighte who provide interest free propositions to customers for green loans.

How

A non-traditional interest-free, fee-free instalment plan providing customers with instant access to funds for mid-high value transactions ($1K-$30K) over longer terms (6-60 months).

Team: Lead UX-UI Designer (Victor Beltrame), Senior Product Manager, Senior Business Analyst, Senior Tech Lead, Native Developers, Junior UX designer

Client: Commonwealth Bank of Australia

Discovery - Understanding the problem

Why

The big4 currently do not offer customers interest-free solutions for mid to high-value transactions that customers can repay over a longer period. Currently, the Australian market boasts multiple BNPL products tailored for low-value transactions with short-term fixed instalment repayments, creating a competitive landscape often referred to as the ‘red ocean’.

This competitiveness is evident due to the plethora of BNPL options available on the market, particularly for transactions under $1000, within an 18-month timeframe. Contrastingly, the ‘blue ocean’ above this competitive space offers only a handful of options for mid to high-value transactions that cover a longer repayment period.

Customer problem

Customers in Australia face a challenge when seeking BNPL solutions tailored to their needs. With numerous options available for low-value/short-term fixed, and a notable gap in the market for interest-free/mid to high-value/extended period choices, customers are struggling to find suitable payment plans for larger purchases without accruing interest.

Business problem

Analysis revealed a substantial financial obligation carried by around 39,000 CommBank customers who diligently make monthly repayments. These repayments collectively amass approximately $21.7 million each month, a staggering sum indicative of the significant investment and commitment these customers have made. Their payments are directed towards Plenti or Brighte, two companies renowned for interest-free solutions specifically tailored for green loans. The data underscores the widespread adoption of sustainable financing options and the growing demand among customers for environmentally conscious financial products.

Stakeholder interviews

Why

Stakeholder interviews provided a comprehensive understanding of the challenges and opportunities within the BNPL and sustainable financing sectors in Australia. Addressing these challenges required collaboration between businesses, regulatory bodies, and other stakeholders to ensure the long-term viability and sustainability of these financial products while promoting consumer welfare and market stability.

The following is a summary of the key findings from the stakeholder interviews.

Volume and financial obligations

Stakeholders discussed the substantial volume of transactions generated by BNPL services, exemplified by the significant number of customers making monthly repayments totalling millions of dollars. This underscored the financial commitment and trust placed by consumers in these services, highlighting the need for efficient transaction management and robust risk management strategies.

Market demand and innovation

Stakeholders recognised the growing demand for environmentally conscious financial products, including interest-free solutions for green loans. They emphasised the importance of continuous innovation and expansion in the BNPL and sustainable financing sectors to meet evolving customer preferences and regulatory requirements while remaining competitive in the market.

Regulatory landscape

Regulatory bodies discussed the evolving regulatory landscape surrounding BNPL services and sustainable financing options. They emphasised the need for responsible lending practices, consumer protection measures, and transparency in product offerings to safeguard consumer interests and maintain market integrity.

Humm

Formerly known as Certegy Ezi-Pay and Oxipay, Humm offers BNPL services with various repayment options, including interest-free periods and longer-term payment plans.

Klarna

Originating from Europe, Klarna has made significant strides in the Australian market with its "Pay Later" option, which allows customers to defer payment or split their purchases into installments.

LatitudePay

LatitudePay offers customers the flexibility to split their purchases into 10 interest-free payments, making it suitable for both small and larger transactions.

Competitor analysis

In the dynamic landscape of BNPL services in Australia, several key competitors vie for market share, each offering unique features and targeting specific customer segments. Among the prominent players are Afterpay, Zip Co, Humm, Klarna, and LatitudePay. 

These competitors cater to different consumer preferences, offering varying repayment terms, interest structures, and merchant partnerships. Additionally, they continuously innovate to enhance user experience, expand merchant networks, and introduce new features such as rewards programs and financial management tools. As regulatory scrutiny increases in the BNPL sector, these companies are also focusing on responsible lending practices and ensuring transparency in their offerings to maintain consumer trust and regulatory compliance.

Who we are designing for

Creating a persona was crucial for this project because it helped the team understand the target audience's needs, behaviours, and goals. It guided design decisions, ensuring the product met user expectations and addressed their challenges effectively. Personas also aided in prioritising features and refining user experiences, resulting in a more successful and user-centric outcome.

Customer interviews

My team and I conducted customer (20x) interviews to uncover pain points related to Buy Now, Pay Later (BNPL) for large purchases, which is a strategic approach to gather insights for improving the user experience. Here's a breakdown of what we learned

Limited BNPL Options for Larger Purchases

Customers in Australia struggle to find suitable BNPL solutions tailored to their needs, especially for mid to high-value transactions over an extended period. This leaves them with limited options for financing larger purchases without accruing interest.

Regulatory Uncertainty and Compliance

Regulatory bodies emphasize the importance of responsible lending practices, consumer protection measures, and transparency in product offerings. Customers may feel uncertain about the regulatory environment surrounding BNPL services, potentially impacting their trust and confidence in these financial products.

Lack of Interest-Free Solutions for Green Loans

Customers demonstrate a preference for environmentally conscious financial products, such as interest-free solutions for green loans. The absence of such options within the BNPL market indicates a gap in meeting customers' desire for sustainable financing options.

Lengthy Journey from Merchant to CBA

The BNPL journey for customers begins with selecting products or services from the merchant, navigating through the payment process, and managing repayments, often facing challenges such as limited options and regulatory uncertainties, which can lead to dissatisfaction when repayments are directed to competitors; integrating this journey seamlessly with CBA, offering suitable BNPL options and green loan solutions, would enhance the user experience and address these pain points effectively.

Journey

The customer journey for InstalPay users involved several stages, from initial awareness of the service to the completion of a transaction. The following is an overview of the typical customer journey for InstalPay users. By understanding and optimising each stage of the customer journey, InstalPay provides a positive and user-friendly experience, fostering loyalty and satisfaction while driving growth and adoption of its BNPL service.

User journey insights

  • Merchant Availability: Limited acceptance of InstalPay at merchants can disrupt the user experience and limit choices for users.

  • Creditworthiness Checks: Lengthy or stringent credit checks during sign-up may deter potential users and prolong the onboarding process.

  • Unclear Repayment Terms: Lack of clarity regarding repayment terms can lead to confusion, missed payments, and unexpected fees.

  • Late Payment Fees: Penalties for missed payments can increase the overall cost of purchases and impact users' financial health.

  • Customer Support Issues: Ineffective customer support can lead to frustration and erode trust in the service.

  • Data Security Concerns: Worries about data security may deter users from using Instalpay or sharing personal information.

  • Limited Payment Flexibility: Users may feel constrained by rigid repayment schedules, especially during times of financial volatility.

Experience vision

Creating an Experience Vision was critical for InstalPay as it provided alignment with goals, guided design decisions, facilitated communication, inspired creativity, emphasised user-centricity, and enabled evaluation and iteration based on the desired experience. This holistic approach ensured the redesign delivered a compelling and effective user experience that met both business objectives and user expectations.

Simplicity

Reduced distractions – let users perform tasks in a few clicks

Designed easy-to-understand, effortless, and intentional interactions

Simple and common tasks were be frictionless and obvious; complex tasks felt efficient and delightful.

Make it personal

Don't make users remember information

Give customers access to features they needed when required. Designed for the ways people live think, and act. 

The result was an experience that feels like it was created for one person.

Accessible

The resulting experience is accessible to everyone, regardless of abilities. Accessible design is good design. Everything we build is as inclusive, legible and readable as possible. If we have to sacrifice elegance — so be it. We building for needs, not audiences.

The first impression matter

Making a solid first impression is fundamental in creating a trustworthy and credible customer relationship. We help users to eliminate the uncertainties of using a new service. 

Design ideation - Low Fi

Out of all the workshops, the one focused on improving the user experience of ‘Liabilities’ and ‘Your share of expenses’ screens was a standout. It was significant as we knew getting these screens right would have a huge impact on how users interacted with our product. It was a strategic move aimed at addressing identified pain points and enhancing the most challenging part of the user journey.

Recognising the complexity and potential drop-off points in these screens, the workshop was an opportunity to harness the collective expertise of our team. By involving key stakeholders such as the Senior Product Manager, Senior Business Analyst, Senior Tech Lead, Native Developers, and UX Junior Designer, I ensured a diverse range of perspectives and insights were considered throughout the ideation process.

At the workshop's close, we came up with some innovative ideas and different ways to make the two screens better. After robust debate, we nailed two solid design concepts that collectively solved the problem we we're facing.

The problem tackled in the workshop

The ‘Liabilities’ and ‘Your share of expenses’ blades were too long and complex, potentially creating a drop-off in the InstalPay journey.

How might we

How might we support our customers to efficiently complete the ‘Liabilities’ and ‘Your share of expenses’ screens?

  • Visual clarity: A key findings was the need to enhance visual clarity within the two screens. Participants highlighted areas where visual elements could be better organised and presented to improve comprehension for users.

  • Simplification of complex features: Participants recognised the need to simplify complex features within the screens to reduce cognitive load. This involved streamlining information presentation, minimising unnecessary elements, and providing clear guidance for user interactions.

  • Accessibility considerations: Accessibility emerged as a significant concern. Participants emphasised the importance of the UI design catering for diverse needs, including those with disabilities. This involved optimising colour contrast, providing alternative text for images, and ensuring keyboard navigation.

  • Mobile focus: With the increasing prevalence of mobile usage, the workshop highlighted the importance of optimising the UI design for mobile devices. Participants discussed strategies for ensuring the screens were responsive and provided an optimal experience across various screen sizes and resolutions.

  • Feedback mechanisms: Incorporating effective feedback mechanisms within the UI design was identified as a key area for improvement. Participants suggested integrating interactive elements such as tooltips, error messages, and confirmation dialogues to provide users with timely feedback and guidance.

  • Using customer data for autofill: Workshop discussions emphasised leveraging customer data to autofill information fields in the screens. This approach aims to enhance user convenience, reduce form-filling time, and optimise the overall user experience.

From low-fidelity to mid-fidelity designs

Why

Transitioning from low-fidelity to mid-fidelity designs is essential for detailed visualisation, squad engagement, feedback elicitation, iterative improvement, risk mitigation, enhanced communication, and stakeholder buy-in, ultimately contributing to the development of successful and user-centred products.

The mid-fidelity designs presented to the team served as a crucial milestone in the UX design process, gathering comprehensive feedback from stakeholders and ensuring alignment with development feasibility. These designs bridged the gap between initial low-fidelity concepts and final high-fidelity prototypes, offering a balanced level of detail and functionality for evaluation.

I extensively presented mid-fidelity designs to stakeholders to help them visualise the proposed solutions in greater detail, providing a more accurate representation of the final product's look and feel. By showcasing aspects such as layout structures and basic interactive elements, stakeholders gained deeper insights into the intended user experience and design direction.

Furthermore, involving developers in the feedback process ensured that the proposed designs were not only visually appealing but also technically feasible and aligned with the project's development constraints.

Usability test and incorporating feedback

The usability test provided valuable insights into customer interaction with the loan options selection process and their overall experience with the application journey.

I strategically tested on mobile devices to stress test designs and ensure ease of use, even on smaller screens.

This allowed us to simulate real-world usage scenarios and assess the application's performance under various conditions. By prioritising mobile testing, we identified potential usability issues specific to mobile platforms and addressed them proactively, validating designs, stress testing usability, and ensuring a seamless user experience across different screen sizes.

High-level questions before the usability test

  • Understand how customers want to select and check loan options

  • What are the customer mental models when exploring or selecting loan repayments and frequency

  • Uncover key experience pain points - is the length of the journey a problem

  • Uncover customer expectations after finishing the application

  • Do customers understand the next steps? How do they feel about them

  • What kind of language best resonates with customers

  • Understand if the content is straightforward and if it conveys a sense of trust 

  • Uncover if the amount of information presented is sufficient

What went well

  • Varied customer preferences: The usability test revealed that customers had diverse preferences when selecting loan options, indicating that the application caters to a wide range of user needs and preferences

  • Understanding mental models: By uncovering different mental models around loan repayments the test provided valuable insights into user priorities and decision-making processes

  • Identification of pain points: The test successfully identified key pain points, such as confusion around terminology and unclear next steps

  • Clarity in language use: Clear and concise language resonated well with customers, indicating that the application effectively communicated information in a manner that was easily understood by users.

What needs improvement

  • Clarity of next steps: There were mixed feelings regarding the clarity of next steps, once the application was completed. This highlighted the need for clearer instructions and guidance

  • Balancing information presentation: The perception of information overload underscored the challenge of striking the right balance between providing sufficient information and avoiding overwhelming users, calling for further refinement in information presentation.

Design - High Fi

The rationale

After analysing usability test results and identifying areas for improvement in UX and UI, I transitioned from mid-fidelity to high-fidelity designs to refine user interactions, improve usability metrics such as navigation and information hierarchy, ensure visual consistency and accessibility compliance, gather feedback from stakeholders on design elements, and provide detailed specifications for development, thereby aligning the design with user needs and project goals.

UI enhancements

The transition to high-fidelity designs incorporated refined, meticulous visual elements that aligned seamlessly with CommBank's design system and reflected the bank's brand guidelines.

Accessibility and responsiveness

High-fidelity designs place a strong emphasis on accessibility and responsiveness. Designers ensure that the interface is accessible to users with disabilities by adhering to WCAG standards.

Refinement Based on Feedback

High-fidelity designs place a strong emphasis on accessibility and responsiveness. Designers ensure that the interface is accessible to users with disabilities by adhering to WCAG standards.

Responsiveness optimised designs for various devices and screen sizes, including desktops, tablets, and smartphones.

Desktop examples

Loan term and expenses screens

Mobile flow

What see more?

Prototype

Feel free to explore the prototype for the InstalPay by clicking on the button below. 

Live project

Feel free to explore the Instalpay journey here

Measuring success

Why

In my opinion, measuring the success of a project is crucial because it provides valuable insights into its effectiveness, allowing stakeholders to evaluate whether the project has met its objectives and delivered the desired outcomes.

Customer & business goals

Customer commencing the application

Metric

An increase in customers starting the application indicates their understanding of the product.

What is the measure of success

Customer commencing application

Target

80%

Customers providing consent to bureau call

Successful document upload

An increase in customers consenting to a bureau call midway through the application indicates their understanding of the application process.

Customer consent

75%

Customers dropping off at employment, Income & expenses liability screens

Customers are expected to feel comfortable providing or updating their employment income, liabilities, and expenses to facilitate the application decision process. If they drop off before giving consent, it indicates their discomfort and potential lack of understanding in the respective section, presenting an opportunity for us to educate the customer by providing additional information or addressing any issues.

Successfully navigating through the Employment, Income, Liabilities, and Expense screens is crucial for completing the application process.

65%

Customers who encounter the document upload screen are expected to successfully upload their documents.

Successful uploading documents

40%

Successful customer submission

After completing the application, the customer is expected to submit it.

Successful submit of application

35%

Reflections - What I Learned

Balancing the user experience with competitive fees and rates was not a trade-off.

Users expected low or no fees on ‘green loans’. While ensuring a seamless user experience remained a priority, we understood that users also valued affordability, so struck a balance between delivering a high-end user experience with competitive fees and rates.

Agile adaptation is essential for established institutions like big banks to remain competitive and nimble.

In a fast-paced market, the ability to quickly adapt to changing user preferences and trends is crucial to maintain competitiveness. We adopted agile methodologies to produce flexible and responsive design processes.

Clear communication and transparency regarding fees and rates foster trust and loyalty among users.

Transparency is key to building trust with our users. By providing clear and upfront communication about fees and rates, we established a sense of trust and credibility, which fostered user loyalty and long-term engagement with our products.

Leveraging data analytics and user research informs strategic decision-making and product development priorities.

Data-driven insights are invaluable in guiding our strategic decisions and prioritising product development. By leveraging data analytics and conducting thorough user research, we gained valuable insights into user behaviour, preferences, and pain points, which informed our design decisions and product roadmap.