Tax season is a massive opportunity for banks and fintechs to strengthen relationships with their customers. And while tax filing might not seem like the most obvious way to build loyalty, the results and experiences of banks and fintech companies that use Column Tax tell a story of customer retention. It turns out, customers who file their taxes through their banking or fintech app are far more likely to stay engaged year after year.

‍

The retention power of in-app tax filing

When tax season rolls around, most people want to get their filing done quickly, easily, and with as little stress as possible. If their banking or fintech app can make that happen, they’re not just grateful — they’re more likely to stick around.

We’ve seen this play out with our partners. Users who filed their taxes with a banking or fintech app that offers Column Tax’s embedded tax filing are three times more likely to do it again using the same app the next year. (When you’re able to file six times faster than average via Column Tax’s in-app experience, there’s no reason to go back to the status quo.)

MoneyLion, a fintech platform that integrates Column Tax, found that embedding tax filing didn’t just make life easier for its users, it also drove business results. The company saw a jump in average revenue per user (ARPU), increased purchase volumes, and higher daily engagement — because when users know they can handle taxes, banking, and spending all in one place, they’re more likely to make that platform their financial home.

Users can talk to one another on the MoneyLion platform, which gives the leadership team insights into how their users feel about the tax filing experience. 

“We’re seeing the engagement,” said Cynthia Kleinbaum Milner, CMO of MoneyLion. “We’re seeing customers saying, ‘This is great! You should all do it!’”

‍

A better experience leads to stronger customer relationships

Offering in-app tax filing enhances the value your users get from your app, and that builds long-term trust.

Take Chime, for example. The company rolled out 100% free in-app tax filing in 2024 to help its members navigate tax season without the usual headaches or extra costs. Not only did it save Chime members money, but it also gave them early access to their federal tax refunds when they direct-deposited with Chime. That’s the kind of seamless, user-friendly experience that makes customers want to stick around.

Then there’s Everlance, a platform built for self-employed workers. Everlance was able to bundle embedded tax filing within its Professional plan, which gives users an effortless way to go from tracking their expenses to filing their taxes in the same app. This is a huge value-add for freelancers who often have complex returns and use multiple financial tools, and it’s unlocked a new service level for Everlance. 

“Providing in-app tax filing with Column Tax is allowing us to offer premium financial tools across the entire lifecycle of each Everlance user,” said Ashkan Motamedi, Business Lead at Everlance. 

With this premium experience, Everlance was able to attract and retain more engaged users who saw the platform as an essential part of their financial workflow.

‍

The financial impact of tax refunds

Beyond the convenience factor, tax refunds are a major financial moment for many people. And banks and fintechs that offer in-app filing are in a prime position to help their users make the most of that money.

One of the biggest benefits? Higher deposit rates. The average tax refund for people who file taxes in their mobile banking app lands between $2,300 and $2,700, and a staggering 98-99% of those funds go straight into the account they used to file. That’s not just great for users — it’s great for financial institutions looking to increase deposits.

And here’s an unexpected bonus: Even people who don’t file through their bank or fintech platform tend to deposit more money when they see tax filing being offered in-app. Just seeing the prompt results in a 10-15% increase in deposit activity from tax refunds from people who still choose to file elsewhere.

‍

Build in-app tax filing into your customer retention strategy

Adding in-app tax filing isn’t just about offering another feature — it’s about deepening customer relationships, driving engagement, and boosting deposits. When users see that their financial platform is making tax season easier, they’re more likely to trust that platform with more of their financial life. And that’s not just during tax time, but all year long.

For banks and fintech companies looking to increase retention and revenue, embedded tax filing is a clear win. It turns tax season from a one-time engagement spike into a lasting relationship driver. Customers walk away with a better, faster, and more stress-free tax experience — one they’ll want to repeat next year.