Galileo Financial Technologies, LLC, a financial technology company owned and operated independently by SoFi Technologies, Inc. (NASDAQ: SOFI), announced the launch of Galileo Direct Deposit Switch.
Powered by Atomic, the infrastructure provider for connecting with payroll accounts, Galileo’s Direct Deposit Switch functionality “gives the company’s fintech clients an opportunity to better serve consumers by offering faster access to their wages and a more streamlined approach to redirecting part or all of their paychecks into a financial services accounts of their choice.”
With Galileo Direct Deposit Switch, customers can quickly and easily “set-up and update their payroll direct deposit information, specify how much of their wages to deposit in their accounts, create accounts for specific purposes, including a vacation or education fund, and make recurring deposits to multiple accounts.”
The new financial feature also “eliminates processing delays, gives users peace of mind by instantly verifying requests, and empowers workers with greater control over where they route their funds.”
Approximately 93% of U.S. consumers “receive their paycheck by direct deposit.”
However, the direct deposit experience is laden “with manual friction that commonly occurs during onboarding when workers join a new employer or request to update their disbursements, such as changing their primary account on file or splitting their paycheck routing across two or more accounts.”
These are simple everyday scenarios but can be “complicated because they often rely on sending instructions to HR or payroll providers.” These processes are “still dated, despite heavy venture investment in the HR technology sector, but are also a prime target for account verification fraud and unforced human errors.”
For workers, it can also “delay getting paid in their desired financial accounts by up to four weeks — or two bi-weekly pay cycles.” All are key pain points Atomic and Galileo “have heard from customer feedback and aligned this partnership to solve.”
David Feuer, Chief Product Officer at Galileo, said:
“Recent Galileo research shows people are keeping money in more accounts, and they want fast, flexible ways to move and manage their money. We are proud to partner with Atomic to help our bank and fintech clients simplify direct deposit onboarding, drive higher customer lifetime value and boost access to financial services that will enhance everyone’s financial future. As we continue to accelerate digital banking, Galileo Direct Deposit Switch will be the best way to drive value for our clients’ ledgers.”
Galileo Direct Deposit Switch “integrates Atomic’s automated payroll connectivity to offer the ease and convenience that consumers expect from their financial services provider today.”
By embedding the new functionality directly into the customer onboarding experience, customers can “boost direct deposit adoption by up to 50% while also increasing customer lifetime value (LTV).”
Banks and fintech firms working with Galileo can also “further maximize customer value and retention by offering highly relevant new products to direct deposit customers.”
Lindsay Davis, Head of Markets for Atomic, remarked:
“For financial institutions and fintech firms, a steady deposit stream is key to account profitability. These benefits extend to businesses as they look to leverage digitized and automated direct deposit payroll processes that present enormous financial opportunities. Clients leveraging payroll connectivity solutions, such as direct deposit switching, have seen as high as a 3-4X lift on direct deposit acquisition when benchmarked to other solutions.”
Galileo Direct Deposit Switch is “available for most top employers and incumbent payroll providers, bespoke enterprise solutions, modern HR tech providers, gig-economy platforms and government systems via Atomic’s network of payroll coverage.”