Direct Deposit Innovators Target the Power of the Paycheck
- Date:November 03, 2022
- Author(s):
- Dylan Lerner
- Report Details: 6 pages, 3 graphics
- Research Topic(s):
- Digital Banking
- Mobile & Online Banking
- PAID CONTENT
Overview
Innovative newcomers and an evolving consumer finance culture are turning the traditional outlook on direct deposit on its head. Where once it was a staple in measuring customer loyalty, the rise of open banking and the fragmentation of consumers’ financial lives demand a reconsideration of the role of direct deposit in a primary banking relationship.
Financial institutions will need to be innovative in matching the selling points of neobank and fintech challengers, who have moved beyond such offerings as early direct deposit access and are now pushing features like on-demand wage access. This will require FIs to be nimble and smart and expand the value proposition for customers who are increasingly willing and able to mix and match financial products and services across multiple companies.
Companies Mentioned:
Chase, DailyPay, Earnin, Even, PayActiv, Pinwheel, PNC, U.S. Bank
Learn More About This Report & Javelin
Related content
Mobile Deposit: A Success Story With Three Caveats
In 2023, mobile deposit became the most frequent way consumers chose to deposit a check. It is by far the preferred deposit method, and it is a winner among younger consumers. None...
Mapping Out the Generative AI Future at Three Large Fintechs
Over the past five years, Javelin Strategy & Research has persistently raised the alarm about the escalating influence of three dominant fintech platforms—Intuit, Block, and PayPal...
Three Mobile Banking Priorities for Smaller FIs
Small FIs don’t have the resources to compete with the largest banks in developing mobile banking features. Instead, community banks and credit unions outside the top 20 must count...
Make informed decisions in a digital financial world