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Veridian launches early direct deposit service

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Veridian Credit Union recently announced it has begun offering early direct deposit services, by releasing members’ electronic payroll up to two days sooner than the members’ payday. The new service, which started last week, is provided free and automatically for Veridian members enrolled to receive direct deposits. An estimated 169,000 of the Waterloo-based credit union’s 300,000 members are currently enrolled for direct deposit of their pay. “We’re always looking for ways to make our members’ financial lives simpler to manage,” said Veridian President and CEO Renee Christoffer. “Releasing direct deposits up to two days early is one way we can achieve that.” Veridian officials are not aware of any other financial institutions in Iowa currently offering the service, said Andrea Hudnut, public relations strategist for Veridian. No regulatory approval is needed for banks or credit unions to offer the service. According to a June 2021 article in American Banker magazine, “a small number of banks have begun offering early direct deposit — a move that will cost them revenue in the short run but could help them preserve market share and strengthen their public image over the long term.” Several online banks, among them Axos Bank, Chime and Varos, offer the service as a competitive feature. Wells Fargo announced in January that it will begin offering early access to direct deposits starting in the third quarter of 2022 as part of a number of ways to give customers “new options to better manage their financial well-being.”

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