MoneyLion

Personal Loan Segmentation Case Study

Problem:

Users weren't taking out personal loans at the rate we expected. Our analysis showed that loan application completions were stuck at 12%, with 67% of users dropping off after seeing their initial offer. The problem was that we focused too heavily on our value proposition, rather than differentiating why someone might need a loan in the first place. As a result, our approach didn’t align with user intent, making it harder for customers to see how a personal loan could meet their specific financial needs.

Solution:

To better align with user intent, I:

  • Implement a more customer-centric approach to our loan application flow.

  • A segmentation strategy based on income and credit score, mapping users into two personas:

  • Hackers (lower income, poor credit)

  • Climbers (moderate income, fair credit)

By matching lifecycle messaging to each segment's financial behaviors and loan motivations, I refined product positioning and personalized engagement. This included tailored email sequences, in-app nudges, and targeted campaigns that spoke directly to why each segment might need a loan.

Result:

Leveraging A/B testing and consumer behavior analysis, I identified key growth opportunities, optimized product messaging, and refined the loan application journey. This led to:

  • 35% increase in quarterly revenue over two quarters (from $6.4M to $8.67M)

  • 20% QoQ growth

  • 31% boost in ARPU

  • Loan application completion rates increasing from 12% to 26%

  • Higher engagement rates, with a 48% email open rate and an additional $40K in weekly revenue

This data-driven approach not only improved conversion rates but also enhanced user trust in the loan process by making it more relevant and accessible to their financial situation.

Loan application flow (UX)

Before

The problem:

  • Too much content upfront (slider, buttons, tooltip)
    → Problem: Overwhelms the user with choices and information before they know what to do.

  • Partner logo shown even when user doesn’t qualify for a loan
    → Problem: Confusing and potentially frustrating — why show a partner if there’s no offer?

  • Header and subcopy don’t align with why customers are looking for a loan
    → Problem: Doesn’t speak to user’s goal or motivation, making the experience feel disconnected from their needs.

LIFECYCLE EMAIL (Hackers)

In-App Pop Up (Hackers)

LIFECYCLE EMAIL (Climbers)

In-App Pop Up (Climbers)

Whitepaper (download via PDF)

After

GENERIC EMAIL (Before Segmentation)

The problem:

  • Too many CTA buttons upfront
    → Problem: Customers already know how much they need — multiple loan amount buttons added noise without helping them decide.

  • Generic value proposition
    → Problem: Focus on "comparing lenders" felt disconnected from why customers seek a loan (e.g., covering bills, emergencies).

  • Header and subcopy misaligned with user needs
    → Problem: Phrasing like "An offer from our partners" felt cold and didn’t speak to the user's immediate goal (getting funds quickly).

  • Lack of real personalization
    → Problem: Aside from using the name, the email felt generic — missed chance to make offers feel tailored and relevant.

Changes:

  • Rewrote the header to focus on the customer’s goal
    → Makes the experience feel more relevant and user-centered.

  • Added a “What do you need a loan for?” screen
    → Helps users connect the loan to their specific needs, creating a more personal and relatable experience.

  • Introduced a loan preview screen summarizing amount and reason for borrowing
    → Gives users confidence and clarity before moving forward, making the process feel transparent and supportive.

  • Structured the flow to guide users step by step
    → Creates a more intuitive and seamless borrowing journey aligned with how users think about getting a loan.

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