Pinwheel and Candescent Launch Direct Deposit Switching Partnership

Pinwheel

FinTech Pinwheel teamed with account opening solutions firm Candescent, formerly Terafina.

The partnership brings Pinwheel’s direct deposit switching solution to Candescent’s bank and credit union clients, according to a Wednesday (Oct. 30) press release.

“Consumers today have more accounts than ever before, banking at multiple institutions to satisfy their varying financial needs,” the release said. “As banks fight to win greater shares of consumers’ wallets and ultimately battle for account primacy — to become a customer’s primary financial institution — simplifying the direct deposit switching process becomes a critical differentiating factor.”

Direct deposit switching has traditionally been a cumbersome, friction-filled process, requiring customers to manually enter their payroll credentials, leading to high drop-off rates, according to the release.

Pinwheel removes the barrier via a digital, credential-less process called Pinwheel PreMatch, doing away with the need for consumers to know and enter their payroll credentials, per the release. This makes it easier for them to onboard using a bank’s mobile application.

By simplifying the direct deposit switching process, Pinwheel allows Candescent’s customers to capture more deposits, reduce churn and create stronger customer relationships, the release said.

In other banking news, devices such as smartphones are serving as the chief conduit for banking’s evolution beyond the boundaries of branches and ATMs.

Earlier this year, the PYMNTS Intelligence report “How CUs Can Drive Engagement With Self-Service Banking Innovation” found that among all demographics surveyed, mobile and online banking is the self-service banking option consumers use the most. More than 6 in 10 credit union members said they rely on mobile and online banking the most.

Roughly a quarter of Generation Z consumers said they choose their financial institution relationships based on self-service banking convenience.

Additional PYMNTS Intelligence research shows that 90% of top-performing credit unions saw a jump in member satisfaction with their mobile app over the last year, while 83% recorded an increase in the number of mobile app downloads.

“For banks, there are benefits in the form of increased customer loyalty and satisfaction, as well as reduced operating costs (fewer walk-ins into the branch for ad hoc queries and calls into call centers),” PYMNTS wrote this week.