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Instant Payments May Give Credit Unions a Deposit Growth Advantage

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Instant Payments May Give Credit Unions a Deposit Growth Advantage

Business accounts at Amplify Credit Union that received at least one instant payment grew 25% faster.

Consumer accounts receiving instant payments grew 12% faster than the credit union’s overall portfolio.

Business account growth associated with instant-payment recipients added roughly $1 million in deposits in one quarter.

Banks have generally measured instant payments by transactions: how many customers use them, how much money moves and how quickly payments arrive.

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Business accounts that received at least one instant payment grew 25% faster after Amplify enabled receive-only capabilities on The Clearing House RTP network, according to the October Real-Time Payments Tracker, produced by PYMNTS Intelligence in collaboration with The Clearing House.

The growth added roughly $1 million in deposits over a single quarter.

Consumer accounts that received instant payments also grew faster, expanding 12% more quickly than Amplify’s overall portfolio. For a financial institution, that creates another question to measure: what happens to the account after the payment arrives?

The Amplify results give banks another way to evaluate the economics of instant payment adoption.

Payment volume measures use of the rail. Deposit growth measures what that use means for the account relationship.

PYMNTS Intelligence found that 76% of surveyed financial institutions enable the RTP network for commercial customers, while 40% offer FedNow to those clients.

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