US Bank is the first large American bank to allow automatic direct deposit switching thanks to a partnership with payroll startup Atomic.
US Bank wants to make it dead-simple for new customers to deposit their paychecks into its checking accounts, as FinServs vie for loyalty and people pick up new gigs.
US Bank is partnering with payroll startup Atomic to save time for new customers (or those with a fresh side hustle).
Instead of manually filling out routing and account numbers to set up a direct deposit, US Bank clients will be able to automate the process from within the bank’s website and app by searching for and logging in with their payroll provider. This speeds up an otherwise tedious routine, according to the bank.
“Our new DIY direct deposit feature is yet another way we are helping our clients save time and simplify banking,” said vice chair of consumer and business banking Tim Welsh.
Beyond new US Bank clients, the tool is particularly useful for existing customers who are picking up gig work or have just landed a new job, and early data shows that it’s already a popular feature.
The bank evaluated several options before deciding to collaborate with Atomic, according to SVP and head of digital sales Jonathan Burns.
“We were confident from the beginning that our combined team talents, backgrounds, and agile culture would power us to jointly succeed in breaking down customer friction and barriers when it comes to payroll deposit switching,” he told Insights Distilled. The feature builds on US Bank’s larger account opening initiatives, which allow people to digitally apply for checking accounts in minutes.
Atomic is “actively working” with other large financial institutions on similar offerings, Atomic CEO Jordan Wright told Distilled, adding that there are clear benefits for banks of making deposit switching easy.
Lower friction can lead to “higher direct deposit conversion rates, cost savings from maintaining unfunded accounts, and increased active usage and product engagement across bill pay and auto-payment,” Wright said. “All leading to deeper customer relationships and higher life-time value.”