Pinwheel Collaborates with Jack Henry to Streamline Access to the Industry's Top Performing Direct Deposit Switching Solution

Rhea-AI Summary

Pinwheel, a fintech company, has announced a collaboration with Jack Henry to offer a seamless digital direct deposit setup experience for community and regional financial institutions. Pinwheel's direct deposit switching solution is now accessible through the Jack Henry digital banking platform, allowing for easy integration and providing a seamless banking experience. The collaboration aims to empower consumers to move their money to a financial institution of their choice in mere seconds, with Pinwheel's market-leading coverage and innovative next-generation Direct Deposit Switching product. This partnership allows existing Banno customers to install and activate Pinwheel's solution within hours, unlocking benefits such as increased customer lifetime value and deposit growth.

Insights

Financial Analyst

The collaboration between Pinwheel and Jack Henry represents a significant advancement in the digital banking sector, particularly for community and regional financial institutions. By integrating Pinwheel's direct deposit switching (DDS) solution into Jack Henry's digital platform, these institutions are positioned to enhance customer retention and attract new accountholders. The ability to switch direct deposits instantly and cover 100% of the US workforce, including gig workers and those receiving various benefits, is a substantial competitive advantage.

From a financial perspective, the integration is likely to drive deposit growth and improve customer lifetime value for participating institutions. Given that half of potential customers drop off due to the complexity of entering credentials, the streamlined process could materially impact conversion rates. For investors, the key metrics to watch following this announcement would be the adoption rate of Pinwheel's DDS among Jack Henry's client base and any subsequent changes in deposit levels and customer acquisition costs.

Market Research Analyst

The partnership highlights a growing trend in the fintech industry towards creating seamless user experiences and the importance of digital banking solutions in achieving customer satisfaction and loyalty. By offering a frictionless direct deposit setup, Pinwheel and Jack Henry are addressing a significant pain point in the customer journey. This move is likely to set a new standard for user experience in digital banking, potentially influencing customer expectations and behaviors across the sector.

Market research indicates that ease of use is a critical factor in customer decision-making for financial services. Therefore, this collaboration could serve as a catalyst for broader industry innovation, prompting competitors to seek similar enhancements to their digital offerings. The long-term impact may include a shift in market share towards institutions that prioritize user-friendly digital interactions, which would be an important consideration for stakeholders and investors evaluating the performance and potential of financial institutions.

Technology Integration Specialist

The technical aspect of integrating Pinwheel's DDS into Jack Henry's digital banking platform is noteworthy. The use of Banno Digital Toolkit's APIs enables a streamlined integration process, which is critical for the rapid deployment and scalability of the solution. For financial institutions, the ability to activate Pinwheel's DDS within hours is a testament to the agility of modern fintech solutions.

In terms of technology adoption, the ease of integration could lead to a higher uptake rate among Jack Henry's existing customer base, facilitating a quicker realization of the benefits associated with the DDS solution. This integration serves as a case study for how API-driven partnerships can rapidly enhance digital banking services, potentially influencing future technology strategies within the financial sector.

Community and regional financial institutions can offer accountholders a seamless, near-instant digital direct deposit setup experience with Pinwheel.

NEW YORK, Jan. 18, 2024 /PRNewswire/ -- Pinwheel, the fintech helping banks win primacy by making direct deposit switching easy, announced today that its top-performing direct deposit switching (DDS) solution is now accessible through the Jack Henry™ digital banking platform.

Pinwheel Collaborates with Jack Henry

Pinwheel leveraged the Banno Digital Toolkit™, the same set of APIs the Banno Digital Platform™ is built on, to embed its technology into the digital experiences offered by community and regional financial institutions. Access to Jack Henry's API, design, and authenticated frameworks has enabled Pinwheel to integrate directly into the digital banking platform, providing a seamless banking experience. This integration contributes to Jack Henry's growing ecosystem of over 950 fintechs, providing approximately 7,500 financial institutions with relevant financial products and services for their account holders.

Pinwheel's next-generation DDS product is powered by our payroll partner network and is unlike other industry offerings for several reasons, but a few key differentiators paramount to its partnership with Jack Henry start with Pinwheel's market-leading coverage. Pinwheel's DDS is the only product available that covers 100% of the US workforce, enabling any US worker to move their direct deposit within seconds, regardless of whether they're a full-time employee, a gig worker, receiving unemployment benefits or SSI payments or some combination of these options.

Additionally, Pinwheel is pioneering the creation of a payroll partner network, including providers such as OneSource Virtual (OSV), to bring an innovative next-generation Direct Deposit Switching product to market that instantly identifies and authenticates U.S. workers' payroll records within the bank account application workflow. This frictionless process eliminates the need for consumers to know and enter credentials (a barrier that is responsible for 50% of the drop-off points along the customer journey). Pinwheel customers, such as American Express, Cash App, and Citizens, optimize their conversion, increase customer lifetime value, and enjoy deposit growth. With this collaboration, existing Banno customers can install and activate Pinwheel's DDS solution to their digital suite within hours and begin unlocking these benefits.

"Accessibility is a core value to Pinwheel, and one we carefully considered when embarking on our collaboration with Jack Henry," said Brian Karimi-Pashaki, Partnerships Lead of Pinwheel. "This collaboration with Jack Henry allows our full-coverage direct deposit solution to reach a broader population of community and regional financial institutions, in turn, giving their consumers greater agency and freedom to move their money to a financial institution of their choice in mere seconds. Partnerships with leading companies such as Jack Henry allow us to continue working towards a fairer and more innovative financial future."

Pinwheel is powering the next generation of finance and prioritizes partnerships that foster innovative customer experiences. "As financial institutions of every size intensify their focus on digital banking to enhance customer service, our collaboration with Banno empowers them to provide a smooth, integrated direct deposit experience to their customers," added Michael Cowart, Business Development & Partnerships of Pinwheel.

About Jack Henry & Associates, Inc.
Jack Henry™ (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For more than 47 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,500 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at http://www.jackhenry.com

About Pinwheel
Pinwheel helps banks win primacy by making switching direct deposits easy. Through exclusive and first-of-its-kind partnerships with payroll providers, Pinwheel can instantly authenticate consumers without credentials. This new product provides best-in-class conversion, greater security, better insights, and a seamless UX for switching direct deposits at the world's leading financial institutions. Pinwheel's platform has enterprise-grade security protocols to power connections to over 1,800 platforms (covering up to 100% of US workers paid via direct deposit) and over 1.5 million employers. From that point of connectivity, leading fintechs and financial institutions (such as Block's Cash App, Citizens Bank, Acorns, Credit Karma, and more) leverage us to power direct deposit switching, earned wage access, income & employment verification, and build innovative new products. 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

FAQ

What is the collaboration announced in the PR?

The PR announces a collaboration between Pinwheel and Jack Henry to offer a seamless digital direct deposit setup experience for community and regional financial institutions.

What is the key differentiator of Pinwheel's direct deposit switching solution?

Pinwheel's direct deposit switching solution covers 100% of the US workforce, enabling any US worker to move their direct deposit within seconds, regardless of their employment status.

What is the goal of the collaboration between Pinwheel and Jack Henry?

The goal of the collaboration is to empower consumers to move their money to a financial institution of their choice in mere seconds, with Pinwheel's market-leading coverage and innovative next-generation Direct Deposit Switching product.

How can existing Banno customers benefit from the collaboration?

Existing Banno customers can install and activate Pinwheel's direct deposit switching solution within hours, unlocking benefits such as increased customer lifetime value and deposit growth.