MX, Dwolla Team To Automate Bank Account Verification

MX, a financial data platform, has partnered with Dwolla, which is a software platform working with funds transfers, to help customers more easily connect to depository accounts, according to a press release.

“We give organizations the ability to deliver modern, tokenized, open banking [application programming interface (API)] connections for customers to access their financial data through the MXconnect widget,” said MX Co-Founder and Chief Technology Officer Brandon Dewitt in the release. “Customers will now have access to an improved modern connectivity experience for their institutions.”

MX touted in the release that its services can help with customer retention by helping with slow connections.

Dewitt said in the release that while micro-deposits have had a poor reputation, for much of the population using community credit unions (CUs) or mid-size intuitions, “it comes down to either using a micro-deposit or not having the ability to connect them to their accounts.”

“Every user should have the ability to connect to their account, no matter where they bank, which is what makes this partnership so exciting,” he said in the release. “MX is offering all users the ability to easily connect accounts for origination, money movement and more.”

Dwolla President and Chief Operating Officer Dave Glaser said in the release: “Partnering with MX will automate the verification experience and make it that much easier to verify a bank account.”

He also said in the release that the combination will make it easier “to ensure that millions of payments occur smoothly and easily each day.”

In January, MX raised $300 million in a Series C funding round, with a $150 million investment from TPG Growth as part of it, along with participation from numerous previous and new backers.

That money was said to be going toward an effort to help organizations digitize payments, with the idea being to make “interacting with money as intelligent and personalized as shopping on Amazon, streaming music on Spotify or driving a Tesla.”