Pinwheel Launches Direct Deposit 2.0 to Offer the Industry’s Highest Coverage Rate, Allowing 100% of the United States Workforce to Update their Deposit Settings Easily

Pinwheel’s original Direct Deposit Switch product has already helped customers grow their direct deposits by up to 75%. Now that Pinwheel has the universal highest direct deposit coverage rate, banks and fintechs who work with Pinwheel are optimized to provide seamless digital experiences to grow direct deposits and overall customer lifetime value.

NEW YORK, March 20, 2023 /PRNewswire/ — Today, Pinwheel, the market-leading provider of income and employment data engineered for next-generation fintech innovation, announced the launch of Deposit Switch 2.0 (DDS 2.0). DDS 2.0 offers the highest coverage rate in the industry so that up to 100% of US workers who are paid via direct deposit can have an easy, digital way to update their direct deposit settings.

The most important part of a person’s financial life is their income — whether they earn a biweekly salary, receive irregular gig-work payments, get pension or unemployment benefits, or any type of income in between — all consumers need a way to seamlessly connect their direct deposits to their financial providers of choice.

Pinwheel’s DDS 1.0 has been a critical tool for financial service providers to grow their deposits by as much as 75%. With the coverage increase from ~80% to 100%, banks and fintechs can expect even more growth. Per Pinwheel’s research, customers who direct deposit into an account have a 32x greater lifetime value than those who don’t.

DDS 2.0 enables every user to utilize the direct deposit switching user experience to drive maximum conversion through Pinwheel’s intelligent case detection, regardless of how they receive their paycheck. Deposit-switching solutions must accommodate all income profile types to deliver maximum value. With the consumer’s permission, Pinwheel automatically offers the best switching options for each customer profile.

• Direct: An automated, no-credentials-required switch via direct payroll platform partnerships.

• Automated: The customer uses their payroll credentials to log in via the Pinwheel flow and update their deposit settings.

• Guided: An assisted flow where Pinwheel uses the information provided by the customer to complete the switch.

• Form-based: Customers who opt out of sharing their payroll credentials can use an intelligently generated form to switch.

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“Automated direct deposit switching has been a core offering for Pinwheel since its inception,” said Robert Reynolds, Head of Product, Pinwheel. “Naturally, we’ve been increasing our coverage over time, working toward a 100% connectivity rate, and we’re excited to offer our customers this level of coverage. Our goal has always been to make it easier for consumers to access the financial products and services they need, and this tool is a critical part of helping financial institutions bring this vision to life. Banks can now automate the direct deposit process for anyone receiving income via direct deposit in the United States. Not only does this streamline the process for consumers, it allows banks to tap into a higher level of personalization, leveling up the pivotal customer experience and strengthening their customer relationships.”

DDS also has the added benefit of offering deeper insights for banks and fintechs so that they can better understand their financial picture to provide them with more products that best meet their needs:

• With a manual deposit switch, gaining additional customer visibility is impossible. DDS 2.0 features real-time deposit allocation monitoring, which allows Pinwheel’s customers to understand which portions of a customer’s paycheck go to their business versus other institutions and to receive real-time alerts when these allocations are changed.

• Direct deposit setup is the most valuable mobile account opening feature, so by removing the friction of a manual deposit setup, banks and fintechs can offer customers a fast and easy experience right from the start.

• With the consumer-permissioned data provided by consumers who connect to their payroll accounts, banks and fintechs can support new products. Payroll connectivity supports consumer-demanded services such as earned wage access, automatic credit line management, better fraud detection, new digital lending solutions, and more.

“Pinwheel’s Deposit Switch 2.0 will allow us to expand the reach of our trusted online banking services and allow us to increase our relationship with our customers significantly,” said Anton Chakhmatov, Director of Product at Varo. “Not only can Varo Bank now support automated switches of direct deposit for 100 percent of the population receiving income via direct deposits, this solution also strengthens our ability to hone in on the unique needs of our customers and offer more tailored solutions.”

To find out more about Pinwheel’s Direct Deposit 2.0 visit https://learn.pinwheelapi.com/deposit-switch-2.0

About Pinwheel: Pinwheel is the market-leading income and employment API. With Pinwheel, fintechs and financial institutions are empowered to build the next generation of financial products that will help create a fairer financial system. Pinwheel provides access to consumer-permissioned income & employment accounts and actionable insights that help them make sense of the data they need to tailor their tools and services for consumers. Pinwheel’s platform has enterprise-grade security protocols to power connections to over 1,600 platforms (covering 80% of US workers), over 40 time & attendance (T&A) platforms, and over 1.5 million employers. From that point of connectivity, leading fintechs and financial institutions (such as Block, formerly Square) leverage us to power direct deposit switching, earned wage access, income & employment verification, and build innovative new products. Pinwheel is also a Consumer Reporting Agency (CRA), making the company the only provider in the space offering Fair Credit Reporting Act (FCRA)-compliant income and employment data that lenders can use actively in decisioning. Pinwheel is trusted and funded with $77M by top-tier investors such as GGV, Coatue, First Round Capital, and more.

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SOURCE Pinwheel