How Payments Gaps Are Limiting Deposit Growth at Community Banks

“Instant Payments Are Winning. Why Are Some Consumers Still Saying No?”, a collaboration between PYMNTS Intelligence and Ingo Payments, looks at a simple but increasingly important issue in modern money movement: When consumers are offered the option to receive funds instantly, why do some still pass? The data shows that instant delivery has become the preferred choice for most recipients across a wide range of payout situations. Whether the money comes from wages, gig work, winnings, insurance claims or another source, consumers generally respond positively when speed is on the table. Across survey waves from July 2024 to November 2025, the share of recipients choosing instant rose as access expanded, while the share opting out stayed relatively small and stable. That matters because it suggests that demand is already there. The bigger challenge is making sure the option is available in more situations and addressing the concerns that still hold some people back. The report also makes clear that the remaining holdouts aren’t a single group. Some consumers decline instant because they don’t need the money right away. Others hesitate because they’re uneasy about sharing their bank details or worried about security. The reasons also shift depending on the type of payout and how important that money is to a household’s finances. Consumers who rely on payouts as core income are especially likely to choose instant, while recipients of insurance and investment payouts are less likely to be offered that option at all. That creates a meaningful opportunity for payers and providers that want to improve the payout experience and capture stronger engagement from recipients who already value speed. In “Instant Payments Are Winning. Why Are Some Consumers Still Saying No?” learn how: Urgency shapes payout behavior. Consumers who need funds immediately are far more likely to choose instant delivery when it is available. When money matters in the moment, faster access becomes a practical decision, not just a convenience. Security concerns are influencing adoption in surprising ways. Younger consumers are among the most likely to cite security as a reason for opting out. That finding challenges the idea that digital familiarity automatically leads to trust in new payment experiences. Access gaps are creating missed opportunities across payout types. Some categories, especially insurance and investment payouts, still lag in offering instant delivery. Expanding availability in those areas could unlock stronger adoption without needing to convince consumers that speed has value.

“The Preference Match Imperative: Aligning Payout Delivery With Recipient Expectations,” a PYMNTS Intelligence and Ingo Payments collaboration, examines a simple yet increasingly important issue in modern disbursements: whether people receive funds the way they want. Using the Preference Match Rate, or PMR, the report measures how often recipients get payouts through their preferred method and shows that this alignment has become a major driver of satisfaction. The findings suggest that payout performance is no longer defined solely by speed. Choice matters, and in many cases, it matters just as much as timing. Recipients who consistently receive funds through their preferred method are significantly more likely to report a positive experience, making PMR a useful lens for understanding where payout systems meet expectations and where they still fall short. The report also shows that the gap between preferences and reality is uneven. Some of the biggest mismatches appear in the payout categories with the highest urgency, including payroll and borrowing. Six in 10 transactional payroll recipients say they have never received payment in the way they prefer, while three-quarters of borrowing recipients report a zero preference match rate. Younger consumers face added friction. Among Gen Z, 44% say they never receive payouts through their preferred method. The data further shows that slower payout experiences often come with fewer choices. When payouts take three days or more, nearly half of recipients say they have never received funds in their preferred way. At the same time, instant delivery environments tend to support better alignment, suggesting that faster systems can also create greater flexibility for recipients. Overall, the report makes the case that organizations that treat PMR as a strategic measure, rather than just an operational detail, will be better positioned to improve satisfaction, reduce friction and build stronger recipient loyalty. In this report, learn how: Rising consumer expectations are reshaping payout performance. The report finds that Preference Match Rates have declined over the past six years, but says this reflects higher consumer expectations rather than weaker payout execution. Before 2020, 34% of recipients fell into the very high match group, compared with 17% today. Payout urgency changes how recipients evaluate the experience. The more urgently consumers need funds, the more pronounced any mismatch between the preferred and actual delivery methods becomes. That helps explain why payroll and borrowing stand out as categories with especially low alignment. Instant-capable payout environments can improve both flexibility and speed. The report finds that when instant delivery is available, alignment improves materially, with more than one in four recipients achieving very high alignment. This suggests that organizations offering faster payout options may also be better able to give recipients meaningful choice.

Banks and credit unions are opening millions of new accounts, yet too many fail to become active relationships. As FinTechs deliver instant funding and immediate usability, traditional financial institutions (FIs) are facing a shift. Deposit growth now depends on how quickly new accounts move from opening to activation. The problem isn’t acquisition—it’s momentum. Customers expect to fund and use accounts immediately, but many institutions still rely on processes that introduce delays between account creation and usability. That gap creates friction at the most critical moment in the customer journey, when engagement should be taking hold. More than one-third of FIs report digital onboarding abandonment rates exceeding 40%, underscoring how quickly momentum can break down. When funding is not immediate, activity can stall before it begins. Some accounts remain unused, while others are abandoned entirely. In fact, 34% of new checking accounts become inactive within their first year. For FIs investing heavily in digital acquisition, these stalled relationships represent missed opportunities to capture deposits, drive transactions and establish primacy. At the same time, competition is intensifying. Consumers now maintain multiple financial relationships, and FinTech platforms are setting the standard for speed and simplicity. By enabling customers to move money instantly and begin transacting within minutes, these providers are converting onboarding into immediate engagement, raising expectations across the industry. This is where instant funding is emerging as a decisive differentiator. Real-time payment capabilities eliminate delays, accelerate activation and create immediate value for customers. Among FIs offering instant payments, 93% report a positive impact on customer retention. This reinforces how faster funding increases the likelihood that a newly opened account becomes a customer’s primary financial relationship. The implication is clear: Account opening is no longer the finish line—activation is. Financial institutions that cannot deliver immediate usability risk losing deposit relationships before they begin, while those that prioritize instant funding are better positioned to turn new accounts into lasting growth.