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MX Technologies Inc. continues to grow its ecosystem of open-banking partners, announcing Monday it is partnering with Pinwheel, provider of an application programming interface for payroll applications. The deal will provide financial-technology service providers with expanded coverage of income verification and improved underwriting models for better lending decisions, which in turn could provide better financial guidance for their customers.
Using MX’s financial-data platform, fintechs can verify accounts and check eligibility for automated clearing house and real-time payments by accessing such consumer financial data as income, employment, paystubs, identity, and time and attendance. The data can be used to identify high-value customers and cross-selling opportunities, as well as enable earned-wage access.
Access to such data is a key component of open banking, which allows third-party financial services companies to access a consumer’s personal financial data, with the consumer’s permission. via an API. As a result, consumers can more easily share their financial information with a lender or financial institution, which can use the data to ensure sufficient funds are in a consumer’s account to pay for a transaction, for example.
Pinwheel, which has access to account data for more than 100 million consumers in the United States, says that partnering with MX, one of the larger players in data aggregation and account connectivity, will “supercharge” its offering.
“We all know that a leading indicator of a user’s lifetime value is the direct deposit,” Don Parker, executive vice president of partnerships for MX, says in a prepared statement. “With Pinwheel, customers have the ability to set up direct deposits, or when necessary, a direct-deposit transfer to remove friction, facilitate financial guidance, and for better lending decisions.”
