Funding Circle's Big Leap
The challenge
Funding Circle was the first to facilitate peer-to-peer business financing in the UK, Funding Circle now operates in the US, Germany, and the Netherlands. I was the 83rd employee.
Investors crave a clear path to their financial goals. But navigating the often-complex world of investments can feel like trekking through a tangled jungle. Simplification, then, becomes the holy grail, but it can be difficult balancing friction against confidence and engagement.
Oversimplification risks infantilizing savvy investors, while excessive complexity can overwhelm newcomers. The challenge lies in striking a balance, offering a clear, intuitive experience that caters to both seasoned veterans and curious novices.
Ultimately, simplifying the investor experience is about creating a welcoming space where everyone, regardless of experience, can confidently navigate the journey towards financial prosperity. It's a challenge worth pursuing, for in doing so, we empower individuals to take control of their future and unlock the true potential of their investments.
Product design
Workshopping
Qualitive research
Mobile design
Web design
What I did
Launching the Innovative Finance ISA
A Seismic Shift for Peer-to-Peer Lending happened in 2014.
A ripple of excitement surged through the industry as the Chancellor declared peer-to-peer lending's entry into the ISA arena. Funding Circle, at the forefront of this revolution, saw a golden opportunity to empower investors and fuel small businesses. The Innovative Finance ISA, was a game-changer in online lending. This revolutionary product allowed FC customers to grow their wealth tax-free while supporting thriving businesses.
Figure 1: Account switch prompt
3 areas of focus, critical user journeys..
The methodology
Education and communication:
"Providing clear and comprehensive education and communication" emphasises the platform's focus on informing users about its services and keeping them updated on important changes.
Terms and conditions:
"User-friendly terms and conditions" indicates that the platform's terms are easy to understand and accessible to users.
Existing ISA transfers:
"Dedicated support for existing ISA transfers" signifies that the platform provides specialised assistance to users transferring existing ISAs.
The methodology
Communication and emphasis on education
Introducing the Innovative Finance ISA to new and existing users was fundamentally important and an emphasis on education was identified as critical focuses on all our communication. I created a dynamic landing page, listing key features and a clear call to action, empathise on conversation and account curation. Before release users could register interest in the new product which helped us retain business confidence in the product.
Figure 3: when talking to new investors, copy “proven track record” targeting new customers, “Tax-efficient lending” targeting existing customers.
Figure 4: As a new financial product the language we used was closely monitored and a lot of work was done reviewing the experience with the FCA both directly and through the compliance team internally.
Conquering Paperwork Mountains: Streamlined Onboarding & T&Cs:
Stage 1: Content Strategy Scaffolding
The first stage laid the groundwork for a robust content strategy. I designed and built a framework that mapped user journeys, identified content pillars, and established clear voice and tone guidelines. This foundational structure ensured all subsequent content would be cohesive, user-centric, and aligned with our overall brand voice.
A UX Workshop on Core Pages utilizes a collaborative approach to define the most critical website or app pages. This workshop delves into user needs, business objectives, and optimal user journeys, ultimately ensuring core pages are laser-focused on achieving both user satisfaction and business success.
Figure 5+6: Notes from Core pages workshop
Figure 7+8: Images from initial flow
Conquering Paperwork Mountains: Streamlined Onboarding & T&Cs:
Stage 2: Building Interactive Elegance
With the content strategy firmly in place, Stage 2 shifted focus to the interactive and visual elements. We meticulously crafted interactions that were intuitive, engaging, and seamless, guiding users through their tasks with effortless ease. Simultaneously, we honed the visual styling, applying intentional design principles to create an interface that was both aesthetically pleasing and functional.
By prioritising the content strategy first, we ensured our interface was built on a solid foundation of understanding user needs and objectives. The subsequent focus on interaction and styling then brought that foundation to life, creating an experience that was both informative and enjoyable.
Figure 9: Early version of form
Figure 10: Later version of same form
The mobile app team from left; James, Jinden, myself and Edu
A critical user journey: Optimising for those with existing ISAs.
The methodology
The biggest opportunity was to facilitate transfers from other ISA pots into Funding Circle. tackling the existing archaic ISA transfer system.
Creating an online transfer form, automating a lot of the admin, paving the way for smoother transitions. At the time, transferring an ISA required the owner to notify the current provider via a government central department. Which could be time consuming. Our online form generated a form which once printed we could share and manually verify via HM Revenue & Customs.
Figure 5: WRIGLE example
From Marketplace to Automation
Streamlining Investment at Funding Circle:
Witnessing the surge in investor interest was exciting, but it also exposed inefficiencies in the pick-and-choose marketplace. Navigating a vast pool of loans presented challenges for new and casual investors, potentially hindering platform growth.
To address this, I spearheaded a design initiative focused on automation and simplification. We envisioned a streamlined experience where investors could define their risk tolerance and investment goals, allowing the platform to automatically match them with suitable loans. This shift aimed to:
Reduce cognitive load:
By eliminating the need to manually sift through hundreds of loans, investors would invest with greater ease and confidence.
Optimise portfolio diversification:
By eliminating the need to manually sift through hundreds of loans, investors would invest with greater ease and confidence.
Improve accessibility:
Improve accessibility: Automation would cater to a wider range of investors, particularly those with less time or financial expertise.
Targeting WR account holders
The NEW challenge
While some investors receive higher than median returns others receive below average returns. While Funding Circle returns were competitive, the returns the business communicates could be disconnected from an individual investor experience. How could we mitigate the risk of this and generate fairer returns which better match the experience for everyone investing.
Figure 9: Image 1: Image highlighting return percentages across investor portfolio.
Project Overview
White label variant of a popular mobile money products
Indigo was the name given at Funding Circle to this user migration initiative. Migrating all our retail investors from a complex "pick and choose" marketplace lending system to a simplified "plug and play" investment product. This shift aimed to improve the investing experience for our retail base by offering a more streamlined and automated approach. Diversifying our investors portfolio over the broader suite of business lending.
Figure 13: Example of Views
Figure 12: Sign In prompt targeting users who have not met recommended diversification targets. Previous “soft touch” initiatives had not been successful in impacting returns.
Moving Away from Micro-Transactions:
Process
Previously, investors navigated a labyrinthine table interface to manually select individual businesses to lend to. This "pick and choose" model, while offering granular control, proved cumbersome and time-consuming, often resembling more of a chore than an investment strategy. Some engaged but inexperienced investors selected riskier investment strategies, choosing a small number of businesses to lend all their funds to.
Figure 14: My nemesis, the "pick and choose" tables. Filled with rows of businesses and lending details, it overwhelmed investors and hindered efficient investing.
Process
A new focus
The focus on the account experience settles on the performance on the total account rather than individual loans. Shifting the narrative around bad debt away from specific listing but focuses on impact on return.
Figure 14: Wireframes from dashboard prototype. Testing was conducted in house with candidates selected via agency.
Process
Informing Investors:
To ensure a smooth transition, we kept our investors informed throughout the process. We sent out a detailed email outlining the upcoming changes, timelines, and the rationale behind the new "plug and play" model. We actively encouraged feedback, which poured in from concerned investors eager to understand the impact on their existing investments.
Figure 15: The email outlining the changes to the services. Working in a fast paced environment means turning your hand to a wider number of things. This is an email I built in html.
Automatic Migration & Choice:
Process
Investors were asked to select an option based on their risk appetite, Conservative or Balanced. While Balanced lent money across the entire risk spectrum, Conservative investors could opt to lend exclusively to businesses underwritten at lower risk. Here default rates are lower however returns on lending were also proportionately smaller.
For those who hadn't actively chosen an option within a set timeframe, their investments were automatically migrated to the new system via our automated lending tool. Those who preferred retaining manual control were first encouraged to select an automated option or liquidate their holdings each time they signed in to their account.
Figure 17: The automatic migration process flow, illustrating how investors were seamlessly transitioned to the new system.
Figure 17: Screenshot from the iPhone app
Thankfully, the majority of our investors embraced the change. Over 75% opted for automatic migration, demonstrating trust in the curated options and the simplified approach. Only a small percentage (less than 5%) chose to liquidate their investments.
Impact
Indigo's success went beyond mere migration. It transformed the investment experience for our retail base:
Increased Accessibility: The "plug and play" model lowered the barrier to entry, attracting new investors who found the previous system too complex.
Improved Efficiency: Automation streamlined the investment process, saving investors time and effort.
Enhanced Transparency: The pre-defined options offered clear risk/return profiles, enabling informed investment decisions.
Greater Diversification: The curated options provided access to a broader range of investment opportunities, reducing risk concentration.
Impact and Benefits:
Debrief
Overall, Indigo proved to be a resounding success, paving the way for a more accessible, efficient, and transparent investment experience for our retail base.