Evaluating the Impact of Layout Design on Cognitive Load and User Efficiency in Loan Term Selection
Context
Choosing a loan term is one of the most important decisions users make during the Discover Personal Loan application process. This project focused on improving the loan term selection experience to make it easier for users to understand how different repayment lengths impact their monthly payments.
To support better comprehension and decision-making, the Discover Personal Loan design team explored two layout options—horizontal and vertical—to determine which design more clearly communicates tradeoffs and reduces friction.
The objective of this study was to identify which layout reduced cognitive load, shortened task completion time, and improved ease of use—ultimately driving higher submission rates.
Tools: UserZoom
Method Used: Click Test
Participants: 200 participants
Timeline: 1.5 weeks
Vertical
Horizontal
Results
Vertical
Horizontal
2 click tests were administered with 100 participants seeing the Vertical Condition and 100 participants seeing the Horizontal Condition. Upon viewing the design, participants were asked to choose the loan term that best suits their needs:
Most participants were able to complete the task of selecting a loan offer correctly in both conditions (77% and 80%), with no significant differences across conditions.
Key Takeaways
UI Layout
Finding: Participants in the Horizontal Condition appeared to show more variety in their loan term choices than those in the Vertical Condition.
Why it Happened: The layout of the loan term options influence decision-making behavior, with the Horizontal Condition encouraging more deliberate evaluation across all choices, while the Vertical Condition may prompt top-heavy selections.
Time on Task
Finding: Participants, on average, completed the task over 4 seconds quicker in the Horizontal Condition than in the Vertical Condition.
Why it Happened: Participants were able to more quickly evaluate and decide on a loan option due to the concise nature of the horizontal design.
Consumer Preference
Finding: Participants were more likely to select the Horizontal Loan Selector as the design they thought would provide them with the best experience.
Why it Happened: Participants who preferred the Horizontal Selector appreciated the side-by-side design, the lack of scrolling necessary, and the intuitiveness of the horizontal design.
Final Recommendation
Consider moving forward with the Horizontal Loan Selector as this design allows consumers to make a more intentional and efficient decision about their personal loan.
Impact
Results from this experiment directly influenced the design decision, leading to adoption of the recommended layout. The selected design is now in production, improving clarity and usability for loan applicants at a critical decision point.