Real-Time Payments Give Banks a Commercial Account Retention Tool
Business-account retention has traditionally depended on a web of services that become embedded in a company’s financial operations. Real-time payments (RTP) are giving banks another opportunity to deepen those ties, particularly when instant transactions become part of the treasury and payment processes businesses use every day. The retention case is beginning to show up in […] The post…
Real-time payments are emerging as a potent commercial account retention tool for banks. By integrating instant transactions into businesses' daily financial operations, banks can deepen ties with their client base. In financial institutions with growing business-client lifetime value, 92% view the return on investment from real-time B2B payments as high or very high.
However, among those experiencing declining client lifetime value, this figure drops to just 40%. Successful implementation of RTP leads to stronger customer relationships among institutions that have embraced this technology. While the data doesn't directly prove RTP reduces account churn, it does link successful instant-payment execution with growing business-client relationship value.
As RTP becomes more widely available, 76% of financial institutions already provide access to the RTP® network, with another quarter having enabled the FedNow® Service. For business customers, practical benefits include payment tracking and immediate payment confirmation, enhancing visibility into money movement and routine treasury operations.
However, implementing RTP can be challenging due to legacy technology, fragmented workflows, liquidity requirements, integration with core and treasury systems, and staffing for 24/7 payments. Banks can overcome these hurdles by focusing on use cases that improve payment visibility, reduce manual processes, and address specific customer pain points.
Additionally, banks should shift their success measurement from transaction volume to customer satisfaction, relationship growth, operational efficiency, and payment adoption. This approach creates a clearer retention test for real-time payments, determining whether it becomes an indispensable part of clients' everyday financial operations, contributing to stronger, longer, and more valuable business relationships.
Written by urgent.news from PYMNTS's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
