Banking Super App Douugh Teams Up with Pinwheel for Automated Direct Deposit Switching

Douugh Ltd, the banking ‘Super App’ on a mission to help customers budget, save and invest their money “to live financially healthier lives,” is pleased to announce a partnership with Pinwheel in order to facilitate automatic direct deposit switching for its US clients.

Douugh’s clients are currently “limited to manual direct deposit switching, a solution that has a lot of friction.”

Working with Pinwheel increases Douugh’s chances of “becoming the primary bank account for many of its customers.”

It’s a significant opportunity, “considering 21% of consumers1 have their primary bank account in a neobank which is expected to increase to above 45% in the next two years.”

Douugh’s Founder and CEO Andy Taylor said:

“We are excited about partnering with Pinwheel to be able to make it effortless for US customers to switch their payroll to Douugh. Our efforts to date have been focused around making it easier for people to switch their primary banking relationship to Douugh in order to unlock the platform revenue opportunities.”

Kurtis Lin, co-founder, and CEO of Pinwheel, remarked:

“We’re thrilled that Douugh has selected Pinwheel as their income connectivity platform of choice. With consumer permissioning, Pinwheel covers over 1,500+ platforms and nearly 80% of anyone receiving a paycheck in the US, unlocking the power of the income layer so that Douugh can grow their share of wallet and also build new and innovative products to deepen customer engagement. We look forward to partnering with Douugh to drive the next wave of fintech innovation.”

On average, neobanks see a direct deposit of $1,000 per customer each paycycle, “meaning even just 1,000 customer switches can result in an increase of $26 million in deposits in a year.”

Consumers are “switching to fintech solutions because they efficiently deal with clients’ needs and are convenient.” However, manual direct deposits are “an obsolete feature and a source of friction for the end-user.”

Pinwheel has “helped Fintechs by automating their direct deposit switching, setting them up to increase revenue and better serve customers.” Using Pinwheels API, Douugh is set “to become a one-stop-shop for all its users’ money management needs.”

One of Pinwheel’s customers (a top 10 neobank by volume) “saw a 20% increase in direct deposit penetration after implementing automated direct deposit switching in the first month.”

In fact, consumers’ second-most requested mobile banking feature “is the ability to set up direct deposit electronically, with 44%2 saying the feature is ‘extremely valuable’.”

Apart from capturing more deposits, the API “sets up a secure, consumer-permissioned point of connectivity to a user’s payroll account, which opens doors to launching other products.”

By leveraging consumer income and employment data, and more, Douugh “can look to expand into lending or offer earned wage access.”

Douugh’s ultimate goal is to assist users “in effortlessly depositing their money so they can automatically organise their income – helping them to budget, save and invest. “Douugh will then be able “to deliver the full value of its autonomous banking solution, helping all customers to become financially healthier.”

As noted in an update shared with CI, Douugh is “developing a banking super app, on a mission to help customers autonomously manage and grow their money to live financially healthier lives.”

Douugh was “launched in November 2020 by Andy Taylor, Co-founder of SocietyOne.”

As mentioned in a release, Pinwheel claims to be “the market-leading consumer permissioned income data layer.”

Fintechs and financial institutions alike “trust Pinwheel to access the data and controls within traditional and non-traditional payroll platforms to update direct deposits, streamline income and employment verification, improve underwriting, power earned wage access, and build innovative new products.”

With consumer permissioning, Pinwheel “connects to the majority of these providers, covering over 1,500+ platforms and nearly 80% of anyone receiving a paycheck in the US, to enable leading companies, like Block (formerly Square), to easily access and update the payroll data of more than 100 million US-based employed people.”

Pinwheel’s platform “is enterprise grade with best-in-class security protocols.”

Pinwheel is “a Consumer Reporting Agency (CRA), making the company the only provider in the space offering Fair Credit Reporting Act (FCRA)-compliant income and employment data.”



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