Pinwheel partners with Q2 to simplify account activation for banks

This partnership, facilitated through the Q2 Partner Accelerator Program, will allow financial institutions to access Pinwheel's data network of payroll providers. This network covers up to 100% of US workers paid via direct deposit, drawing from over 1,800 platforms.

This integration aims to simplify the direct deposit switching process, a key feature in account onboarding journeys. By embedding Pinwheel’s 1-click deposit switching technology, financial institutions can offer their customers a smoother and faster transition, removing barriers that typically hinder account activation. With the new functionality, banks and credit unions can reduce the friction that often leads to account abandonment during the onboarding process.

Addressing account activation challenges

Research indicates that 40% of newly opened accounts are never activated, often due to frustrations with traditional direct deposit switching. The integration of Pinwheel with the Q2 Digital Banking Platform provides a solution to this challenge by enabling deposit switching. This aims to increase customer engagement and help financial institutions secure primary banking relationships.

The Q2 Partner Accelerator Program allows financial institutions to leverage a wide range of pre-integrated solutions from fintech companies like Pinwheel. Through the Q2 Innovation Studio, partners can integrate their technology into the Q2 Digital Banking Platform, enabling rapid deployment and providing a more standardised experience for customers.

The banking sector has been undergoing a rapid digital transformation in recent years, with a focus on improving user experience and making banking processes more seamless and efficient. One of the key areas of focus has been the account onboarding journey, which is often the first and most critical touchpoint between financial institutions and new customers.

As part of this broader digital push, fintech solutions like Pinwheel are emerging as valuable partners in helping financial institutions reduce friction in key processes like direct deposit switching. By leveraging automation and data integrations, fintech companies are providing banks and credit unions with the tools they need to offer smoother, faster account activations, leading to higher engagement rates and improved customer satisfaction.