A case study: How Wonderful leveraged open banking to support Cafod’s charitable initiatives.

Confronted with the burdens of high fees, intricate administration, and security hurdles in traditional donation methods, Cafod embarked on a journey to discover a solution that would simplify the donation process, enhance the impact for donors, and respond to the demands of the modern digital landscape.

Wonderful emerged as the perfect partner, offering an open banking-based platform that removed transaction fees, ensured real-time fund availability, and delivered unparalleled security. This partnership not only improved Cafod’s operational efficiency but also fostered trust with donors, enabling them to contribute more meaningfully to Cafod’s mission. Through the use of Wonderful’s innovative technology, Cafod demonstrates how charities can break free from conventional financial obstacles and step into a new age of effective, transparent, and meaningful fundraising.

Let’s take a closer look at an inspiring study of how modern technology is propelling an age-old philanthropic drive.

Cafod’s mission

The Catholic Agency for Overseas Development (Cafod) serves as a guiding light for countless individuals globally. Cafod, the official aid agency of the Catholic Church in England and Wales, is committed to fighting poverty, tackling social injustices, and empowering communities around the world. Established with a commitment to assist the most compromised, Cafod partners with local organisations in more than 30 countries to promote sustainable development, provide disaster relief, and advocate for social change.

Cafod’s continuous humanitarian initiatives—from healthcare support and emergency relief to education and climate action—are made possible by the remarkable generosity of its donors. However, in an evolving landscape, conventional fundraising models encountered significant challenges. With rising expectations for clarity, efficiency, and ease in charitable contributions, Cafod acknowledged the necessity to refine its donation processes to align with contemporary practices. This pursuit of innovation prompted Cafod to research open banking, a transformative development in financial technology, and to collaborate with Wonderful, a payment provider leading the charge in the field.

How did the traditional fundraising approach hinder Cafod’s mission?

Typically, the donation process at the charitable organisation encountered a number of obstacles that are typical in the charitable sector:

• High transaction costs: Conventional payment systems frequently imposed substantial transaction fees, reducing the disposable net funds that Cafod could accumulate for its initiatives.
• Lengthy processing times: It could take several days for donor cash to arrive in Cafod's accounts, which caused a delay in providing essential assistance to communities in need of immediate funds.
• Complex administrative protocols: The complexities of traditional payment systems require extensive administrative resources to monitor donations and manage cash across a variety of payment channels. With charitable organisations tasked with the critical challenge of mobilising human resources for various initiatives, this becomes an unnecessary burden to manage.
• Donar expectations: In this day and age, when digital transactions are almost instantaneous and the level of security is extremely high, donors expect that their donations will be received by charities in a timely and transparent manner. Cafod ran the danger of losing vital support from donors who were looking for simpler and safer ways to donate.

These problems highlighted the fact that Cafod needed to research alternatives. The organisation wanted a solution that would not only coincide with the expectations of donors but would also serve the purpose of the charity without burdening it with excessive costs and ineffective procedures.

Open banking: A transformation in charitable donations

What is Open Banking?

Open Banking, which was launched in 2017 in the United Kingdom and became mandatory for the nine largest banks (CMA9) in 2018, enables consumers and businesses to exercise more autonomy over their financial data. Users can manage their finances and make payments directly through authorised third-party providers by securely connecting to their bank accounts. The regulated ecosystem ensures that consumers have greater control over their financial information, thereby facilitating transactions that are more transparent, secure, and expedited.

Open banking presents a clear opportunity for charities such as Cafod. It eliminates the intermediaries that frequently impede and confound financial transactions, thereby establishing a more cost-effective and efficient method of managing donations. Open banking enables the establishment of direct connections between the charity and the bank accounts of donors, thereby:

• Reducing transaction fees: By circumventing conventional card networks, open banking decreases transaction expenses, allowing 100%  of each donation to directly benefit Cafod’s initiatives.
• Augmenting security: Through stringent security standards and user verification, open banking cultivates confidence by ensuring the safety of donations and sensitive payment information of the donors.
• Expediting transactions: Donations are processed instantaneously, ensuring that Cafod receives funds promptly and may allocate resources without hesitation.
• Expanding donor reach: By presenting a comfortable platform to digital-native donors, open banking has increased Cafod’s reach of potential donors who were hitherto sceptical about making contributions due to security concerns and cumbersome processes of conventional payment methods. Further, open banking facilitates international fund transfers, thus enhancing donation possibilities from overseas.

Wonderful: Adding a new dimension to Cafod’s fundraising mission

Wonderful is a payment solutions provider with a remarkable vision: to uplift charitable organisations through affordable, groundbreaking financial technology. Renowned for its dedication to openness and no-cost processing for donations, Wonderful has emerged as a reliable ally for charities striving to enhance the effectiveness of their donor contributions. Wonderful’s platform, designed with open banking at its foundation, provides a seamless, secure, and donor-centric experience that aligns seamlessly with contemporary giving trends.

Cafod acknowledged the harmony between its aspirations and Wonderful’s contributions. Wonderful’s open banking solution equipped Cafod with a digital infrastructure designed specifically for its needs—a streamlined, cost-effective donation process free from the administrative burdens and hidden fees that typically come with conventional payment systems.

A perfect solution: Wonderful’s open banking-powered donation collection

Cafod's partnership with Wonderful focused on utilising open banking to enhance the efficiency, security, and accessibility of charity donations. They maximised Wonderful’s platform to:

• Simplify the donation process: Wonderful's platform facilitated Cafod in providing a one-click donation feature via open banking, resulting in a streamlined experience for contributors. By minimising procedures and providing an intuitive user interface, Wonderful facilitated effortless and assured contributions from contributors.
• Eliminate transaction fees: Wonderful’s no-fee model ensured that the entirety of each donation was directed to Cafod’s coffers, thereby optimising the effect of every contribution. In contrast to conventional payment providers that impose a percentage fee on donations, Wonderful's approach prioritises the reduction of overhead costs, enabling Cafod to maximise its financial resources.
• Enhance donation security: Wonderful’s open banking platform incorporates Strong Customer Authentication (SCA) inherently - and this is vital in promoting trust among Cafod's supporters, assuring them that their donations are processed securely and settled instantly.
• Facilitate immediate fund accessibility: Through open banking, donations handled via Wonderful’s platform became accessible to Cafod nearly instantaneously. This speed was especially advantageous for Cafod's emergency relief efforts when urgent funding was crucial for swift action.

By fulfilling these requirements using Wonderful’s platform, Cafod could concentrate more on its goal and diminish the administrative load associated with managing donations.

The high-impact outcome of Wonderful’s open banking integration

The adoption of open banking with Wonderful yielded tangible advantages for Cafod's operations, fundraising efficiency, and donor engagement:

a) Enhanced donor satisfaction

The streamlined procedure increased the likelihood of donors completing their transactions. The long-term fundraising capacity of Cafod was improved by the user-friendly platform and cost benefits offered by Wonderful.

b) Increased impact per donation and cost savings

Ultimately, the elimination of transaction fees enabled Cafod to allocate a greater portion of each donation to its humanitarian endeavours, thereby increasing the available resources. The cost savings were considerable, enabling Cafod to broaden its reach without the necessity of additional funds for operational expenses.

c) Improved transparency and trust among donors

The additional security provided by Wonderful's open banking feature was appreciated by Cafod's supporters. The technology's transparency and reliability promoted trust, thereby increasing donor confidence in Cafod's dedication to the secure and effective management of funds.

Long-term lessons: The future of fundraising

Cafod's collaboration with Wonderful paves the way for other nonprofits wishing to implement open banking. The partnership highlighted some key insights.

• Meeting donor expectations is crucial: The transition to a more easy and transparent donation approach met the expectations of Cafod's modern donors. Embracing open banking payments increased gift numbers while also strengthening donor relationships, demonstrating the necessity of changing to meet supporter expectations.
• Digital transformation requires trustworthy partners: Working with Wonderful demonstrated the value of engaging with a service provider who knows the charitable sector's particular needs. Wonderful's dedication to no-fee and secure processing makes them an excellent ally for philanthropic entities like Cafod, illustrating how strong cooperation can achieve meaningful change.
• Sustainability through technology: Cafod's use of open banking demonstrates the power of technology in developing sustainable operating models for charities. By streamlining its donation processes, Cafod has established a precedent for efficient, secure, and donor-friendly fundraising, establishing itself as a forward-thinking charity organisation.

A Wonderful feat in Cafod’s digital transformation tale

Cafod’s partnership with Wonderful signifies not just a change in donation processing but a remarkable evolution in how charities can utilise technology to elevate transparency, foster donor trust, and optimise operational efficiency. By embracing open banking through Wonderful’s platform, Cafod has significantly enhanced its fundraising toolset while establishing a benchmark for digital evolution in the charitable sector.

For Wonderful, collaborating with Cafod has underscored the essential influence that technology can exert in enhancing social impact. By providing an effective, secure, and donor-centric solution, Wonderful has enabled Cafod to concentrate on its mission and enhance the impact of each contribution.

As Cafod continues to inspire transformation worldwide, its collaboration with Wonderful showcases how cutting-edge payment solutions can empower charities to achieve remarkable success, cultivate deeper connections with supporters, and generate enduring social change. With this foundation established, Cafod and Wonderful are elegantly positioned to delve into even more extraordinary opportunities for harnessing digital technology in the pursuit of a better world.

The future of open banking: Broadening the horizon for charitable organisations

As open banking continues to evolve, it unveils thrilling opportunities for charitable organisations, revolutionising the way they connect with donors and oversee funds. The future of open banking holds the promise of enhanced efficiency, security, and personalisation in the realm of charitable giving.

A remarkable advancement is the probable emergence of personalised donation experiences, where open banking data empowers charities to customise giving options in alignment with donors’ financial preferences and behaviours. This has the potential to inspire ongoing support by providing tailored giving options that align with each donor's unique profile, empowering charities to create more reliable and consistent funding sources.

A further potential innovation is real-time impact tracking, allowing donors to immediately observe the effects of their contributions through open banking. By utilising integrated reporting features, charities can effectively demonstrate the allocation of funds, enabling donors to connect with the impact of their contributions, thereby enhancing engagement and fostering loyalty.

Ultimately, enhanced accessibility via online payment systems will render charitable giving more inclusive, enabling charities to connect with a wider audience. With the integration of open banking APIs across platforms, donors will have the ability to contribute effortlessly through a range of apps and digital wallets, creating a smooth, mobile-friendly donation experience that resonates with digital-native generations.

As open banking keeps evolving, Wonderful is at the forefront of this revolution, updating its platform continuously to provide significant benefits to charitable institutions like Cafod.