Applying for LOAN during MIDDAY More Likely to be REJECTED, Study Claims

Applying for LOAN during MIDDAY More Likely to be REJECTED, Study Claims

Applying for LOAN during MIDDAY More Likely to be REJECTED, Study Claims
Photo: Seleksie

A study claims that bank credit officers rejected loan applications processes during midday due to “decision fatigue.”

READ: Bank Issues Unverified DEATH Notices to Credit-Reporting Agencies

Scientist said officers suffer in this kind of fatigue during midday; this make them more likely to default to the safer option of saying no.

Daily Mail explained that processing loan requests includes considering the applicant’s financial strengths against their risk factors; such activity therefore cognitively demanding.

UK psychologists studied the officers’ decisions on 26,501 loan restructuring requests over the course of a month. They found that “how having regular breaks amid long periods of intense work can make employees more productive overall.”

Study author Simone Schnall also said credit officers make difficult decisions of granting a customer more lenient loan repayment terms in the morning.

“But by midday they showed decision fatigue and were less likely to agree to a loan restructuring request,” he said.

He also added that officers are probably more refreshed after lunchtime and can make better decisions again.

Applying for LOAN during MIDDAY More Likely to be REJECTED, Study Claims
Photo: phys.org

This study helped the team to provide the first calculation of the economic impacts of decision fatigue in a specific context. Further, the bank could have collected an additional $500,000 in loan repayments if all decisions had been made in the early morning.