Minimal disruption and big transformation
An obstacle to digital transformation for many charities is the perception around high cost and disruption to day-to-day processes and tasks. However, the reality is that most open banking applications are free to use and can be operational within a few hours.
All that’s required is an internet-ready device and an internet connection.
Perhaps more pressing though is that the shift to digitisation is now becoming a much-needed lifeline for charities.
Today’s tough terrain
Maintaining share of wallet has always been a central challenge but in the last year in particular, fundraising methods altered, purses have tightened and event participation has fallen, meanwhile demand for services continue to skyrocket.
Macmillan’s Mighty Hikes sponsored walk saw 50% reduction in participants, predicting a £38m shortfall in donations due to less in-person events.
The Royal British Legion’s 2020 Poppy Appeal fell short on its target as door-to-door collections were cancelled for the first time in its 99-year history.
Despite a loss of income for most charities, 63% saw an overwhelming increase in demand for their services in 2020 from the previous year.
These trends are reflected in the 2020 ProBono Economics survey, which found that 83% of charities forecast a decline in their income over the next 12 months, and 69% believed it would take more than a year to return to pre-crisis income levels.
Considering these multi-faceted and unwavering challenges, adapting and embracing a full-circle digital strategy is critical to faster recovery and true sustainability for the third sector.
With open banking, charities gain quick access to a raft of time- and cost-saving functionalities and higher revenue helping to meet the growing demand for their much-needed services.
