FinTech Pinwheel has partnered with account opening solutions company Candescent (formerly Terafina).
The partnership will bring Pinwheel’s direct deposit exchange solution to Candescent’s bank and credit union customers, according to a Wednesday (October 30) press release.
“Today’s consumers have more accounts than ever before and are banking with multiple financial institutions to meet a variety of financial needs,” the release states. “Simplifying the direct deposit switching process will help banks compete for account supremacy to capture a larger share of consumers’ wallets and ultimately become customers’ primary financial institution. It will be a key differentiator.”
Switching to direct deposit has traditionally been a tedious and time-consuming process, requiring customers to manually enter payroll credentials, leading to high attrition rates, according to the release.
Pinwheel removes barriers through a digital credentialless process called Pinwheel PreMatch, eliminating the need for consumers to know and enter their payroll credentials, according to the release. This facilitates onboarding using the bank’s mobile application.
By simplifying the direct deposit switching process, Pinwheel will help Candescent customers earn more deposits, reduce churn and build stronger customer relationships, the release states.
In other banking news, devices such as smartphones are serving as a key conduit for the evolution of banking beyond the boundaries of branches and ATMs.
The PYMNTS Intelligence Report, How CUs Can Drive Engagement in Self-Service Banking Innovation, released earlier this year, found that across all demographics surveyed, consumers use the most The service banking options turned out to be mobile banking and online banking. More than 6 in 10 credit union members say they rely most on mobile and online banking.
About one-quarter of Gen Z consumers say they choose a relationship with a financial institution based on the convenience of self-service banking.
Additional research from PYMNTS Intelligence shows that 90% of top-performing credit unions saw member satisfaction with their mobile apps increase in the last year, and 83% recorded an increase in mobile app downloads.
“For banks, the benefits include increased customer loyalty and satisfaction, as well as lower operating costs (fewer visits to ad-hoc inquiries and calls to call centers),” PYMNTS wrote this week.
See more: Banks, Incandescent Lights, Credit Unions, Digital Banking, Fintech, Mobile Applications, Mobile Banking, News, Partnerships, Windmills, PYMNTS News, Terafina, Latest News
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