Whether it be for medical research or natural disasters, among many other charitable causes, people want to give back to the causes they hold dear. However, often people don’t know how to, where to, or don’t trust the channels claiming they are sending donations to organizations. The lack of trust creates a gap between intentions and making donations which keeps much-needed resources out of the reach of essential causes.
Banks can provide the trusted channel consumers want
Customers, brands, and charitable organizations all trust highly scrutinized and regulated banking institutions that provide the everyday services that consumers and businesses alike need to shop and conduct business. Banks can leverage the trust they’ve built with their clients and provide a means to facilitate the donation process for all parties involved.
Banking applications present the ideal channel for organizations that want to be visible in the minds of consumers and a means for bank clients to make donations in a trusted environment. From within banking applications, banks can control the donation journey from A to Z. In the near future clients will be able to choose a charity of their choice, select the amount they would like to donate, and send the funds with a single click, without ever leaving their banking portal or sharing card details.
Going one step further, financial institutions should consider matching the donations of their client base. Nothing speaks louder than actions, and the charitable actions of banks certainly play a part in customer satisfaction. In a report conducted by Elan and PYMNTS.com, 93% of consumers who said their financial institution made generous charitable contributions were very satisfied with their principal banking provider.
Donating without the risk
The trusted environment is one concern on the mind of altruistic consumers looking to give back, but being able to trust certain charitable organizations is another thought weighing on their minds before making a decision.
Banks can bridge the gap in trust consumers have when donating by creating partnerships with organizations and causes recognized worldwide. Financial institutions have brands with considerable weight and their own charitable interests to consider when striking partnerships with causes looking to participate in this two-sided ecosystem that brings consumers and causes closer together.
How about consumers wanting to donate to local charities? Banks should intend to help clients make donations to local causes, facilitate the process, and remove the risk of phishing sites and fraudulent organizations. With a payment infrastructure in place, banks can also ensure clients don’t share sensitive bank card information with potentially untrustworthy websites and allow for payments to be made directly from their accounts. Internalizing this process not only protects bank clients but ensures that local causes get more attention and funds directly from consumers without intermediaries taking service fees from charitable donations.
Leveraging loyalty and cashback to make donations
Reward and cashback programs could provide a means for bank customers to redeem their points or donate cash earnings directly to causes. This not only simplifies the process of supporting charities but also allows consumers feeling the pinch of inflation to give without burning a hole in their pocket.
PayLead’s automatic cashback technology has been integrated into more than 30 banking and fintech applications across Europe and continues to create cashback earnings funded by leading merchants. With the means to earn cashback built into the purchasing and banking experience, banks can give their clients a choice to redirect these earnings to charities and keep the altruism of their clients within the trusted hands of financial institutions.
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