The financing round was led by Blue Lion Global and Renegade Partners with participation from Bain Capital Ventures (BCV), Box Group, and Kraken Ventures. Rightfoot has been building and testing Connect Magic with financial institutions, lenders, and technology companies across the United States, and will use the funds to launch and expand access.
Understanding the customers' complete financial profiles is important for financial institutions. Currently, these institutions often impose cumbersome tasks on customers, such as manual uploading of financial statements or using login credentials to access bank data. Rightfoot, following discussions with 150+ financial service providers, has discovered a 40% average drop in data collection engagement. This drop negatively impacts conversion rates and revenue.
Instead of requiring bank username and password, Rightfoot Connect Magic requires only the consent of the customer in order to securely retrieve data. As a substitute, Connect Magic leverages basic customer data that financial services providers already have on file, shared with Connect Magic through API, ultimately improving conversion and reducing drop-off.
Rightfoot Connect Magic surfaces customer-permissioned and up-to-date banking and credit data, such as bank account balances, deposits, and withdrawals, credit card balances, and more. This critical data enables financial services providers to:
Monitor accounts and enact early intervention: Avoid NSF fees and lower collections costs by knowing when to reach out to customers who need help;
Mitigate fraud and disputes: Make better decisions with enhanced visibility into chargebacks, payment disputes, customer identity, and more;
Increase personalisation: Leverage up-to-date financial data to tailor product offerings, including proactively identifying customers eligible for refinancing.
Executives from Rightfoot said their vision is to create a world where every person in the US has access to equitable financial services, starting with offerings that enable a true reflection of credit worthiness, and help obliterate predatory lending. Their proprietary technology eliminates the customer burden of manually connecting accounts across the breadth of their financial footprint. With their latest product, Connect Magic, and a new round of funding, their team will tackle an unmet need in the market, equipping financial service providers with the data they need to better serve their customers.
With a comprehensive and up-to-date financial picture of customers, lenders and financial institutions can now make confident, data-driven decisions to lower operational costs and drive growth through improved customer outcomes — increased borrowing power, greater ease-of-use, tailored repayment plans in times of need, fewer insufficient funds fees, proactive identification of customers eligible for refinance, and more.
Speaking on the usefulness of ConnectMagic, officials from tech venture capital fund Blue Lion Global said taht Rightfoot is solving an unmet challenge in a massive market. Getting access to actionable customer data has been a known problem for financial institutions across sectors and product offerings. Rightfoot is solving one of the biggest issues in financial technology with unique technology, expertise, and commitment.
Rightfoot is building the standard API connection for consumer-permissioned data and payments. The company has raised USD 21 million from fintech VCs, as well as executives and founders of companies like Plaid, Venmo, Block, Marqeta, Eventbrite, and more. Rightfoot’s expansion to zero-login data unlocks value for financial institutions to embed up-to-date and consumer-permissioned banking and credit data into any application, without requiring a customer to log in.
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