To enable and simplify the contribution of funds directly into a child’s savings account, Kidfund launched as an application to allows parents, friends and family to contribute in growing kids’ funds. The app aims to help parents increase the number and frequency of transfers to their child’s account to build a larger fund while enabling family and friends to give cash gifts directly to the child’s savings account.
But with limited developer support, Kidfund needed to overcome user on-boarding concerns by creating a fluid experience when users are connecting a funding source and sending gifts to children’s savings accounts.
With two developers and Dwolla’s dedicated support team, Kidfund was up and running in five months—within their projected timeline.
Aided by an integration with Dwolla, Kidfund outpaced its transferred funds projection by 20%. Dwolla helped Kidfund create a seamless user experience, leading Kidfund to exceed their projected account balances by 20% due to 94% of their users taking advantage of Dwolla’s Instant Account Verification to add a funding source.
The primary challenge Kidfund faced was providing a clean and easy experience when transferring funds. They recognized that a smooth payments integration enabling immediate donor activity would optimize the experience and increase retention rates.
According to Appboy, after opening an app for the first time 75% of people fail to return the next day. However, consistent early engagement results in a 90% retention after one month.
In the Kidfund app, families can also extend financial empowerment across communities by donating a percentage of their child’s incoming funds to college savings accounts for kids living in low-income households through Kidfund’s non-profit partner, the 1:1 Fund.
A donor on Kidfund’s application is asked to connect a bank account and then proceeds to actually transfer funds from their donor’s bank account into a Kidfund savings account.
Understandably, users can be tentative when providing banking information, so demonstrating security during the onboarding process is the key to overcoming this challenge. Kidfund wanted to make sure the transfer of funds into a savings account was simple for donors and accomplished in just a few clicks.
So on top of a secure onboarding process, Kidfund needed to provide an enjoyable transaction experience to encourage growth and adoption of the application.
These challenges were successfully tackled by Kidfund, with only two developers on staff.
A Delightful User Experience
Any application that requires a user to link a bank account must be thoughtfully designed around user experience. If not, users will simply delete the app before they even get started.
Optimizing the conversion from app download to linking a donor bank account can make all the difference in growth and adoption. To do this, Kidfund utilized Dwolla’s Instant Account Verification (IAV) to link a donor bank account easily and securely.
Kidfund saw that 94% of accounts with funding sources connected had instantly verified using Instant Account Verification.
Transferring funds from a donor account to a child’s savings account is a key functionality of Kidfund and being able to take a variable percentage of the transfer and donate it to kids in need is part of their mission. Building a solution that brought both of these pieces together was necessary for maintaining customers.
After integrating with Dwolla, Kidfund ensured that the process of transferring funds was as simple as tapping a button in their app, while also providing the necessary functionality of both recurring transfers and taking a percentage of each transaction.