5 Best Practices for User Onboarding in Digital Lending Business

In digital lending, first impressions are everything. A smooth onboarding experience builds trust, reduces drop-offs, and sets the foundation for strong borrower relationships. But for many lenders, onboarding remains a bottleneck—too many steps, unclear instructions, or a lack of transparency can easily drive users away.

If you want borrowers to move from “interested” to “approved” without friction, here are five best practices for onboarding in the digital lending space.

1. Speak to Borrowers' Desires and Pain Points

Too many lending platforms focus their onboarding copy on features: fast approvals, mobile access, low interest rates. While important, what borrowers really care about is solving a problem—whether it’s getting capital to grow their business or covering a short-term personal expense.

Use your onboarding content to address real-life concerns, calm anxieties, and show how your product helps them reach their goal. If your platform helps small businesses access working capital within 24 hours, make that the story from the very first step.

Example: Instead of saying "Upload your business documents," say "Upload one document to get one step closer to your loan approval."

2. Show Progress and Build Momentum

Loan applications can feel long and tedious. To reduce abandonment, show users how far along they are in the process.

Add progress bars, checklists, or step indicators throughout the onboarding journey. This visual feedback not only motivates users to keep going but also gives them confidence that the end is in sight.

Platforms like Canva and GrowthHackers use this method effectively—and in lending, where multiple verification steps are often required, it's even more essential.

Tip: Break onboarding into smaller, digestible phases. Show progress after each milestone to maintain motivation.

3. Welcome and Reassure New Users

Lending is a trust-driven business. The moment a user signs up, your goal should be to build credibility and connection. A short welcome message—whether written or video—can go a long way in humanizing your product.

Explain what to expect in the process, how long it typically takes, and what support is available. This is especially useful in financial services, where users may feel uncertain or nervous about sharing sensitive information.

Example: “We’re here to guide you. Most borrowers complete the setup in under 10 minutes, and our team is ready to help if you need it.”

4. Use Visual Cues to Guide the Process

Most users don’t read everything—they scan. So when your onboarding involves multiple steps, identity verification, or financial document uploads, use visual cues to gently direct users.

These can include:

• Tooltips that highlight what to do next
• Arrows or animations that point to the primary action
• Contextual hints next to required fields
• Icons to indicate completed steps

Just be careful not to overwhelm users. Keep cues helpful and relevant. The goal is to keep users moving forward without confusion or hesitation.

5. Design Helpful and Encouraging Empty States

Many lending platforms forget what a new user sees before their application is fully submitted. Blank dashboards or pages with “No data yet” create a sense of uncertainty or failure.

Instead, use empty states as a teaching moment. Show users what will appear once they’re approved or verified. Use encouraging language and a clear call to action to guide their next step.

Example: “Once your application is approved, your loan dashboard will appear here. In the meantime, let’s finish your profile.”

Avoid fake data or placeholders that might confuse or mislead. Instead, be honest, helpful, and user-focused.

6. Meet Customers Where They Are with Omnichannel Onboarding

Borrowers today move across devices, platforms, and communication channels. Some discover your lending platform on mobile, others through social media or via referral links. If your onboarding experience only lives on one channel, you risk losing users who don’t convert immediately.

Omnichannel onboarding means enabling users to pick up where they left off—whether they started the journey on your website, mobile app, SMS, or even through WhatsApp. It also means using the right channels for nudges and follow-ups: email reminders, push notifications, or chatbot support during key steps like document uploads or KYC verification.

For example:

• A user starts filling out an application on desktop, then receives a link via SMS to finish it on their phone
• An automated WhatsApp message helps a user upload a missing document after dropping off
• A user browsing your loan calculator on mobile is prompted with a one-click way to start their application

This approach reduces drop-offs, builds trust, and gives users control over their journey—something that’s especially important in financial services.

👉 Curious how this works in practice? Explore our Omnichannel Solution to see how lenders are using it to increase conversion and engagement at every touchpoint.

To stay competitive in digital lending, onboarding needs to be personal, clear, and available wherever your customers are. From messaging and microcopy to channel flexibility and progress cues, each interaction matters.

By applying these six best practices—especially with an omnichannel mindset—you create an onboarding experience that not only drives completions, but builds lasting borrower relationships.