(Y: 2021 - 2022)
Mercado Credito®
Thousands of sellers in Mexico, Argentina, and Brazil have trusted us to address their business needs
2019 ・Mobile UX/UI
Turn your dreams into reality
Mercado Crédito is a business unit operating in Latin America (LATAM) under Mercado Libre. It specializes in offering loan products to customers in both Mercado Pago and Mercado Libre platforms throughout the region.
Overview
Currently in Mexico, Mercado Credito do not offer a loan that meets the needs of their users based on their business type, desired loan amount, and interest rate preferences.
Ignoring this issue would lead users to seek better conditions from other financial institutions, which would adversely affect their sales momentum as it would take them more time to secure the desired financing.
Business objective
Increase lead generation 20%
Increase 24% adoption rates.
Ensure a positive user experience.
Product objective
Reduce the number of inquiries required to request an offer improvement
Achieve 12% adoption rates.
Reduce the incoming request cases by 24% for offer inquiries.
Improve NPS by enhancing product reliability and security.
Market size
Mercado Libre's market place in Mexico has over 2 million sellers operating on the platform. Notably, approximately 200,000 of these sellers are classified as small and medium-sized enterprises.
Research
Our research process involves conducting interviews and surveys to gather insights from participants. Through these interactions, we aim to understand their motivations, frustrations, objectives and behaviour related to our loan offerings and onboarding process.
Segments
Independent sellers, self-employed sellers who operate on their own and are not directly tied to a company or brand.
Retail sellers, who have physical stores and need credit to improve their infrastructure, renovate their commercial space, or implement point-of-sale marketing strategies.
2M
Merchants in ML
+5,000
Surveys
500
Responses
20
Interviews
Findings
Pain Points
No dedicated storage space for stock
Lack of immediate funds to purchase products already promised to customers
Running out of products and revenue due to relying on suppliers' lead time
Missing out on immediate profit by offering credit to wholesalers
Behaviour
When seeking a loan, individuals pay attention to the interest rate, the amount, the term, the prepayment, and the speed.
They do not agree to share their information due to confidentiality concerns because they are unaware of the destination of the information and consider it to be something private.
Objectives
Investing in working capital.
Growing your business by increasing the quantity of products to meet the demand of your buyers and maintain stock in fulfillment.
Problem statement
In Mexico, our loan offerings do not align with users' business types, desired loan amounts, and interest rate preferences. This drives them to seek better conditions elsewhere, impacting their sales momentum and delaying their financing.
Current situation
Our goal from business perspective was to optimize lead generation and increase conversions. We recognized that a significant percentage of users visiting the enrollment page were dropping because the offer does not meet your needs.
Offer
Enrollment
User drop off
Ideation
To tackle this challenge, we've introduced an open banking system to enhance our data collection from financial behaviors, enabling us to provide more accurate offers. In Mexico, Open Banking isn't as widely adopted, which may present a significant friction for our customers.
Here's what the process would entail:
Increase loan offer
NEW PROCESS
Offer
Enrollment
Improve offer
Open Banking
Manual
underwriting
New offer
Design
I had two clear objectives: the user must understand that income verification is required for the upgrade and they must know the steps to follow.
Mockups
We want answer three main questions:
What are the benefits of upgrading my loan?
What are the eligibility requirements for the loan upgrade?
How does the loan upgrade process work, and how long will it take?
Entry point
Upsell landing page
Testing
As we concluded the initial design stage, we recognized the importance of ensuring our designs aligned with the user's needs. To achieve this, we created a prototype to test and gather feedback from Mercado Credito target audience, which helped us to fill in any gaps from our research and gain insight into the user's behavior.
Our research indicated that users highly value the offer tu upgrade their loan. However, there remains a significant concern about the security aspects of opening their bank accounts to open banking. We recognize the need to enhance the landing page's information by introducing vlogs that delve into open banking and security. Once users overcome this initial concern and choose to upgrade, the overall user flow is straightforward and seamless.
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