Activation Delays Crimp Banks’ Deposit Growth

Banks and credit unions are opening millions of accounts, but acquisition does not guarantee deposits or a primary customer relationship. Delays between account opening, funding and actual usability can cause customers to abandon onboarding or leave accounts dormant. FinTech providers have raised expectations by enabling instant funding and transactions within minutes, exposing the limitations of batch processing, legacy core systems and fragmented payment tools at traditional financial institutions. The competitive issue has therefore shifted from simply opening accounts to activating them for everyday payments.

PYMNTS Intelligence and Ingo Payments said on March 25, 2026, that more than one-third of financial institutions report digital-onboarding abandonment rates above 40%, while 34% of new checking accounts become inactive within a year. Among institutions offering instant payments, 93% reported a positive effect on retention. A follow-up report on April 16 said 55% of community-bank decision-makers considered their technology stacks fully modernized, though 26% cited fraud as a barrier to faster payments. More than 70% of small and midsize businesses said they would prefer community institutions. The reports disclosed no dollar value for deposits affected.