Despite heavy venture investment in the HR technology sector, the process for customers to update payroll accounts to switch direct deposits or set-up fractional disbursements is dated and laden with manual friction.
To give customers greater control over where they route their funds and to securely streamline payroll account updates, we partnered with financial technology leader Galileo Financial Technologies to launch Galileo Direct Deposit Switch. The Direct Deposit Switch is powered by Atomic’s infrastructure for digitally connecting with payroll accounts. Galileo’s Direct Deposit Switch functionality gives institutional and fintech clients an opportunity to better serve consumers. Its benefits include 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.
In this Insights brief, we share highlights from our joint press release on Business Wire including:
- The benefits of Galileo Direct Deposit Switch for clients and customers
- Customer’s problems our partnership aims to solve
- Where to learn more in Galileo’s report featuring Atomic, The Payments Growth and Activation Playbook
- How to get started with Direct Deposit Switch today
How Galileo Direct Deposit Switch reduces friction for customers
With Galileo Direct Deposit Switch, customers can quickly and easily set-up and update their payroll direct deposit information. They can 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. This provides peace of mind through instant request verification. It also empowers workers with greater control over where they route their funds.
The problems our partnership aims to solve
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. Such friction typically occurs when workers join a new employer or request to update their disbursements. These experiences are common when changing their primary account on file or splitting their paycheck routing across two or more accounts. These scenarios, though simple, can be complicated as they often rely on instructions sent to HR or payroll providers. Despite heavy venture investment, these processes remain dated and are vulnerable to fraud and errors. Workers may also experience delays in receiving their pay in their desired financial accounts. These delays can last 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.
“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.”
-David Feuer, Chief Product Officer at Galileo
How to boost direct deposit adoption and activate clients
Galileo Direct Deposit Switch integrates Atomic’s automated payroll connectivity for the ease and convenience consumers expect from financial services providers. 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.
“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.”
-Lindsay Davis, Head of Markets for Atomic
Want to start using Galileo Direct Deposit Switch today?
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 through our industry-leading payroll connectivity coverage
To learn more about embedding the Galileo Direct Deposit Switch feature as part of a broader approach to eliminating friction, activating newly onboarded clients, and giving existing customers simpler options for directing their payroll funds, download Galileo’s latest industry report featuring Atomic, “The Payments Growth and Activation Playbook.”
