April Demands for Mobile Tax Filing with Self-Guided Instructions
Recent findings from AI-powered tax-filing product April’s 2023 customer impact study reveal that customers are highly receptive to a self-guided, mobile-first tax filing process, according to Fintech Nexus News. The study highlights significant benefits, including substantial time savings, convenience, and maximized refunds.
April partners with banks, fintechs, and payroll providers to assist taxpayers in filing, estimating, and optimizing their taxes within existing financial apps. Designed to be white-labeled and seamlessly integrated, April’s solutions are supported by notable investors such as Treasury, QED, Nyca Partners, Team8, Euclidean Capital, and Atento Capital. Clients benefit from year-round tax insights and optimization opportunities, which prevent tax season shocks and accelerate the filing process.
In preparation for filing season, April partnered with over 20 financial services, fintech, and payroll companies, including Gusto, Dayforce Wallet, Rain, and Zenledger. Co-founder and CEO Ben Borodach emphasized that April looks for three key elements in partners: brand trust and affinity, data-in capabilities, and strong marketing and product communication.
“We specifically seek out partners who have developed innovative, category-defining products,” Borodach said. “Being leaders in their fields, they enjoy strong brand and product affinity, which is crucial for our collaborative efforts.”
Nearly half (47%) of taxpayers completed their returns in under an hour, with the average return taking 43 minutes, compared to the IRS-reported average of 13 hours. Additionally, 95% of users filed for free, thanks to April’s commitment to a flat fee or free filing structure. Borodach explained that this pricing model responds to frequent complaints about other solutions’ complex and unclear pricing models.
“We simply built the product so there was no opportunity for dynamic pricing based on your tax situation,” he said. “We get paid a flat fee per file from our partners – no revenue implications exist in not offering a more complex user-facing pricing model.”
Almost all users (98%) filed via their mobile devices, and 51% of inquiries were resolved by a specially-trained AI chatbot. Borodach noted that limiting the bot’s source content to expert-written help center articles improved the accuracy and relevance of responses.
April attracted a significant number of new and switching users, with 27% of customers filing for the first time and 34% switching from TurboTax. Borodach attributed this to the ability to import data from partners and the transparency of April’s pricing model. Many users appreciated the convenience of pre-filled forms and the straightforward, upfront pricing.
“In contrast, April’s transparent, flat-fee or free pricing model, along with the convenience of filing through an app they already use, made the choice clear,” Borodach concluded.