nCino Adds Pinwheel for Enhanced Direct Deposit Switching

NEW YORK – nCino, Inc. (NASDAQ: NCNO), a cloud banking solutions provider with a market capitalization of $2.63 billion and robust revenue growth of 13.45% over the last twelve months, has partnered with Pinwheel, a fintech company specializing in streamlining account activation processes for financial institutions. According to InvestingPro analysis, nCino appears undervalued at its current trading price of $22.83, despite experiencing a significant 46% decline over the past six months. This collaboration integrates Pinwheel’s Direct Deposit Switching (DDS) technology into nCino’s Consumer Banking Solution, aiming to improve deposit switch conversion rates for banks and credit unions.

The partnership allows nCino’s customers to utilize Pinwheel’s deposit switch service, which has been shown to deliver 30% more successful switches compared to other providers. With a healthy gross profit margin of 60.07% and operating with moderate debt levels, nCino maintains a strong financial position to support this strategic initiative. This service is critical as over 40% of new bank accounts remain inactive due to the cumbersome process of changing direct deposit information. Pinwheel addresses this issue by simplifying direct deposit switches within the account opening process, leveraging its network that reaches all U.S. workers paid through direct deposit.

Pinwheel’s innovation, PreMatch, introduced in late 2023, has further streamlined the DDS experience. Unlike traditional methods that require locating payroll providers and using login credentials, PreMatch proactively identifies users’ payroll records, allowing an instant switch with a one-time passcode. This advancement has reduced the process to a quick, two-click action.

Brian Karimi-Pashaki, Head of Revenue at Pinwheel, highlighted the consumer demand for effortless direct deposit transfers, with 70% indicating a willingness to switch banks for such convenience. Law Helie, General Manager of Consumer Banking at nCino, echoed this sentiment, emphasizing the partnership’s role in modernizing financial operations and improving customer experiences.

Currently, Pinwheel stands as the sole DDS provider integrated with the nCino platform. Further details on how nCino customers can benefit from Pinwheel’s services will be presented at nCino’s annual conference, nSight, taking place on May 19-21 in Charlotte, NC. Investors should note that nCino’s next earnings report is scheduled for May 28, 2025. For deeper insights into nCino’s financial health and growth prospects, including 8 additional exclusive ProTips and comprehensive valuation metrics, visit InvestingPro.

Pinwheel supports a range of financial services, including income and employment verification, and bill management, by connecting to a vast network of payroll providers and employers. This partnership marks a significant step for nCino in enhancing its digital offerings and for Pinwheel in expanding its reach within the financial sector. This news is based on a press release statement.

In other recent news, nCino Inc. has been the subject of several analyst updates following its fiscal year 2026 guidance and recent earnings release. UBS has revised its price target for nCino to $30 from $43, maintaining a Buy rating, despite the company’s revenue guidance falling below expectations. The guidance indicated subscription and total revenue projections approximately 6% below Street estimates, with challenges in mortgage and international bookings contributing to a more cautious outlook. Meanwhile, Keefe, Bruyette & Woods adjusted their price target from $40 to $28, yet retained an Outperform rating, suggesting potential upside due to a conservative revenue guide and margin expansion opportunities. BofA Securities also raised its price target to $26 from $22, maintaining a Neutral rating, citing confidence in nCino’s growth strategy despite previous soft outlooks. In contrast, Goldman Sachs downgraded nCino from Buy to Neutral, reducing the price target to $24, due to slower-than-expected performance in the core commercial business and integration challenges. Despite these mixed evaluations, analysts acknowledge the potential for nCino’s new product suite and a possible recovery in the lending environment to spur future growth.

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