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Perspectives

Instant payments for US regional financial institutions

Accelerating adoption of instant payments

Instant payments are on the rise. With platforms such as RTP® from The Clearing House (TCH) and FedNow® from the Federal Reserve offering instant payments infrastructure, US regional financial institutions must act quickly to adopt instant payments to stay relevant in the market. Discover the adoption challenges involved—and the steps to overcome them.

The landscape of instant payments

Most financial institutions have adopted or are considering adoption of instant payments. TCH RTP® reaches 65% of demand deposit accounts (DDAs).1 FedNow® aims to connect with more than 10,000 financial institutions through the Federal Library and Information Network (FEDLINK).2 Instant payments are becoming table stakes, and financial institutions risk losing customers and market share if they do not offer these services.

 

Three challenges to instant payments adoption

Despite the evident customer demand, only 18%–20% of US regional financial institutions are either TCH RTP® network participants or part of the FedNow® pilot program.3  The hesitation to adopt instant payments is primarily due to challenges on three fronts:

  • Prioritization of relevant use cases for rollout in the short, medium, and long term
  • Technology and operations modernization requirements
  • Effective mitigation of the expected rise in fraud rates

 

Instant payments: Now is the time to adopt

Discover how these challenges can be addressed with a phased approach for instant payments adoption. Leading financial institutions have started to adopt instant payments, and US regional financial institutions need to start considering it as well—instant payment offerings are anticipated to be table stakes in the next 12–18 months. For financial institutions to adopt new technologies and streamline operations in this window of opportunity, they must move quickly. The time is now—download the full report to get started.

Accelerating adoption of instant payments for US regional financial institutions

Get in touch

Zachary Aron
Principal
Deloitte Consulting LLP
zaron@deloitte.com

Vishal Kalsi
Senior Manager
Deloitte Consulting LLP
vikalsi@deloitte.com

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Endnotes

1 The Clearing House, “RTP: Frequently asked questions,” accessed July 2023.
2 Board of Governors of the Federal Reserve (FRB), “FedNow® Service: Frequently asked questions,” last updated July 20, 2023.
3 Deloitte research

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