As banks vie for customer primacy, Pinwheel and OSV created a solution that gives financial institutions a competitive edge: a new payroll partner-based experience that instantly identifies and authenticates U.S. workers’ payroll records within the new bank account application workflow.
This completely frictionless experience will power easy direct deposit switching for millions of US workers at approximately 1,000 employers across America. Now, US workers can seamlessly move their money to the financial institution with the best rates and products, including popular Pinwheel customers such as American Express, Cash App, and Citizens.
NEW YORK, Nov. 29, 2023 /PRNewswire/ — Today Pinwheel, the fintech helping banks win primacy through automated direct deposit switching and instant account funding, and One Source Virtual (OSV), a top 5 payroll provider and one of the fastest-growing payroll providers in the United States, formed the industry’s first announced partnership between an API company and a payroll company. The partnership is the start of Pinwheel’s creation of a first-of-its-kind network of payroll providers, which will power a frictionless, login-free DDS experience. This alliance marks a significant inflection point for financial services and responds to growing consumer demand for more transparency, control, and portability over their banking relationships.
Mainstream adoption of seamless, near-instant deposit switching gives consumers new agility to freely move around the financial system and ushers in a new era of healthy competition among banks and fintechs. As detailed in the recent 1033 Rule Making, the CFPB expects increased competition from open banking practices to result in higher savings rates, lower borrowing rates, and easier-to-use product experiences for all U.S. consumers.
Pinwheel and OSV created a solution that gives financial institutions vying for customer primacy a competitive edge.
OSV is an official Workday partner and one of the fastest-growing business process-as-a-service (BPaaS) providers in the country, transacting over $150 billion dollars annually and removing the administrative burdens associated with payroll, taxes, benefits, and accounts payable. The partnership makes it easy for millions of employees at a wide variety of businesses, including a national grocery chain, a national airline, and a national convenience store chain, to switch their direct deposit with a couple of clicks, powering a frictionless and paper-free way to move money to the bank best capable of serving their needs. Employees do not need to use login credentials, and they can allocate all or a portion of their earnings to the new destination account in seconds.
“OSV has a history of championing fintech and a demonstrated track record of success working with innovators such as Wagestream and Boost Payment Solutions. Like earned wage access and verification of income or employment in our myFlexWallet product, seamless deposit switching helps users meet their financial wellness goals and move money to the places it will work hardest for them. Folks want banks to be on their side, and our new partnership with Pinwheel gives them a powerful, combined ally,” said John Bax, Chief Financial Officer of OSV.
On average, consumers stay with their bank for nearly two decades, largely due to the arduous deposit-switching process banks have relied on to retain customers. This barrier to exit is a point of leverage for institutions: they can easily retain these deposits without offering incentives in the form of better products and services. Today, the addition of OSV to Pinwheel’s Partner-Based Direct Deposit Switching network frees nearly 30M U.S. workers from these constraints.
“I founded Pinwheel on the premise that unlocking consumer-permissioned income data would help create a fairer financial system. Our next-generation product, powered by our payroll partner network, enables seamless and instant direct deposit switching to bring us significantly closer to attaining that goal,” said Kurtis Lin, co-founder and CEO of Pinwheel. “Our network of partnerships with OSV and other leading payroll providers will free consumers from the confines of their legacy financial institutions and put the power over their financial futures back in their hands.” With the help of OSV and Pinwheel, millions of consumers now have a simple way to move their money to banks offering the best rates and products, as encouraged by personal finance experts.
“The financial ecosystem is nothing without partnerships, especially groundbreaking ones which signify a wave of positive, transformational change,” said Brian Karimi-Pashaki, Partnerships Lead of Pinwheel. “By announcing this first-of-its-kind partnership, we’ve set a new precedent for consumer experience expectations. Together with our payroll partners like OSV, who move trillions of dollars throughout the U.S. economy, we’re ushering in a new era of financial freedom. I’m proud of our work at Pinwheel and excited to announce the continued expansion of our payroll partnerships network.”
Pinwheel’s mission is to create a fairer financial system, and allowing consumers to easily move money to the bank or fintech of their choice in seconds is paramount to that goal, something we grow closer to achieving with the help of our stellar partners such as OSV, Plaid, and Visa.
About PinwheelPinwheel 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.
About OneSource VirtualFounded in 2008, OSV pioneered Business Process as a Service (BPaaS) and has become the leading provider of automated solutions for organizations of all sizes using Workday, delivering services to nearly 1,000 employers with unparalleled choices, unwavering commitment, and uncompromising care. OneSource Virtual’s global headquarters is located in Dallas, Texas, with additional locations across North America and Europe. Find your company’s solution at http://www.onesourcevirtual.com
SOURCE Pinwheel
