But early paycheck is more than just a cool feature.
Early paycheck is a free, automatic feature of all Capital One checking accounts signed up for direct deposit. Benefits of early paycheckĪs you might expect, customer feedback has been overwhelmingly positive. The partnership across many business and tech teams was exemplary. Business partners from across Capital One provided our tech teams with excellent support – tracking down information, answering regulatory questions and making necessary trade-off decisions – to keep this project on track. Without help from other parts of our business, early paycheck never would have become a reality. Reimagining long-established banking processes meant that we had to strike a balance - enacting an innovative technical solution, while addressing risk and ensuring compliance. More than a year later, many of the technologists that helped shape early paycheck still feel a deep sense of pride for the impact their work has had on our customers.Īs all technologists know, large-scale, tech-backed change doesn't happen in a day (even when the solution is relatively straightforward).
A national advertising campaign launched alongside the introduction of early paycheck, touting the benefits of the new feature. We created new touchpoints to promote the early paycheck feature with existing customers and streamlined setup processes for new direct deposits to encourage greater adoption. Our team rounded out early paycheck by rethinking the entire customer experience around direct deposits. As a rule, our tech teams advocate for the solution that best fits into the technology ecosystem, and we try not to overcomplicate solutions as we build them. The beauty of early paycheck lies in its relative simplicity. Rather than follow this legacy operation, we simply input a flat file into the payment process that helped identify which deposits were paychecks and route these transactions for faster posting.
Typically, when a company sends payroll to its bank, ACH (or direct deposit) files are used to organize payment instructions and route payments to the correct employee bank accounts. Our tech teams identified a straightforward solution that streamlined processing of direct deposits. Without this flexibility built into our business, we never could have implemented early paycheck. We rely on a scaled, flexible approach to development across Capital One, ensuring teams across our business remain aligned as we work to unlock new ways of serving our customers. When it comes to innovation, our teams have a significant advantage. We set out to develop a technology solution, and the project was dubbed “early paycheck,” alluding to our ultimate goal: post customer paychecks so quickly that they could hit accounts before payday even arrived. While we weren’t the first bank to develop this kind of technology, we sought to become the first bank to bring such a feature to the market at scale. In late 2020, we noticed that certain neo-banks and a few regional banks and credit unions had begun to experiment with features that provided faster access to paychecks. With more than half of Americans living paycheck to paycheck, speeding up direct deposits could make a real difference in the lives of millions of customers.ĭecades-old processes left room for improvement No matter what you do for a job, everyone looks forward to payday. While direct deposit isn’t new, legacy direct deposits still require time-consuming processes - such as ACH file reviews and data transmissions during transfers - which typically take a few days to complete. Since then, customers have enjoyed the speed and ease of direct deposit over paper paychecks. (Don't we all choose "direct deposit" when we fill out payroll forms for precisely that reason?) Direct deposit, or the Automated Clearing House Network (ACH), was designed by banks more than 40 years ago to reduce overhead related to processing paper checks. A quick history of direct depositįor decades, direct deposit has been the fastest way to access your paycheck. This is the story of how our teams leveraged technology, problem solved, and collaborated to make early paycheck a reality. But whether you're a back-end developer or a data scientist, all technologists can agree that implementation of new processes always requires a team effort. This feature is a big win for those who matter most – our customers – and it clearly illustrates the benefits that well-implemented technology can offer. bank to offer early paycheck, a feature that allows customers to access direct deposit paychecks up to two days sooner than traditional direct deposit processes. In March 2021, Capital One became the first major U.S.
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