Sydney | New York, 13 April 2022 – Douugh Ltd (ASX: DOU) & (OTCQB: DOUUF), 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 to facilitate automatic direct deposit switching for its US customers.
Douugh’s customers 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 big 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.
Commenting on the Company’s partnership with Pinwheel, 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.”
“We’re thrilled that Douugh has selected Pinwheel as their income connectivity platform of choice,” said Kurtis Lin, co-founder, and CEO of Pinwheel. “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.