SAN FRANCISCO, August 10, 2023–(BUSINESS WIRE)–Today Rightfoot announced the launch of its zero-login consumer-permissioned data product, Connect Magic, and a $15 million Series A fundraise. The financing round was led by Blue Lion Global and Renegade Partners with participation from Bain Capital Ventures (BCV), Box Group, and Kraken Ventures. Rightfoot has been building and testing Connect Magic with financial institutions, lenders, and technology companies across the United States, and will use the funds to launch and expand access.
Financial institutions need to understand the full financial picture of their customers. The primary way financial institutions receive this information today is by requiring their customers to overcome burdensome tasks, including manually uploading financial statements or logging in with usernames and passwords to gain access to bank account information. After speaking with over 150 financial service providers, Rightfoot found these companies experience an average 40% dropoff rate at the data collection point, significantly decreasing conversion and revenue.
Instead of requiring bank username and password, Rightfoot Connect Magic requires only the consent of the customer in order to securely retrieve data. As a substitute, Connect Magic leverages basic customer data that financial services providers already have on file, shared with Connect Magic through API, ultimately improving conversion and reducing dropoff.
Rightfoot Connect Magic surfaces customer-permissioned and up-to-date banking and credit data, such as bank account balances, deposits, and withdrawals, credit card balances, and more. This critical data enables financial services providers to:
- Monitor accounts and enact early intervention: Avoid NSF fees and lower collections costs by knowing when to reach out to customers who need help
- Mitigate fraud and disputes: Make better decisions with enhanced visibility into chargebacks, payment disputes, customer identity, and more
- Increase personalization: Leverage up-to-date financial data to tailor product offerings, including proactively identifying customers eligible for refinancing
“Our vision is to create a world where every person in the U.S. has access to equitable financial services, starting with offerings that enable a true reflection of credit worthiness, and help obliterate predatory lending,” said Dani Pensack, CEO and Co-founder of Rightfoot. “Our proprietary technology eliminates the customer burden of manually connecting accounts across the breadth of their financial footprint. With our latest product — Connect Magic — and a new round of funding, our team will tackle the biggest unmet need in the market — equipping financial service providers with the data they need to better serve their customers.”
With a comprehensive and up-to-date financial picture of customers, lenders and financial institutions can now make confident, data-driven decisions to lower operational costs and ultimately drive growth through improved customer outcomes — increased borrowing power, greater ease-of-use, tailored repayment plans in times of need, fewer insufficient funds fees, proactive identification of customers eligible for refinance, and more.
“Rightfoot is solving an unmet challenge in a massive market,” said Manu Gupta, founder of Blue Lion Global. “Getting access to actionable customer data has been a known-mammoth of a problem for financial institutions across sectors and product offerings. Rightfoot is solving one of the biggest issues in financial technology today with unique technology, expertise, and an unparalleled commitment.”
Rightfoot is headquartered in San Francisco and is hiring across engineering, marketing, and more.
Rightfoot is building the standard API connection for consumer-permissioned data and payments. The company has raised $21M+ from leading fintech VCs, as well as executives and founders of companies like Plaid, Venmo, Block, Marqeta, Eventbrite, and more. Rightfoot’s expansion to zero-login data unlocks value for financial institutions to embed up-to-date and consumer-permissioned banking and credit data into any application, without requiring a customer to log in. Rightfoot was named a 2021 Forbes Cloud 100 Rising Star, and has won awards such as Will Reed’s 2023 Top 100.
Image by: Rightfoot