The End of Waiting: Real-Time Funding Becomes Banking Imperative
Financial institutions that delay implementing real-time account funding capabilities risk significant customer attrition, according to reports from industry leaders. Sources indicate that what was once considered a premium feature has rapidly evolved into a competitive necessity, with consumer patience now measured in seconds rather than days.
“I don’t think real-time account funding is the future,” said Jakub Petri, Vice President of Global Sales and Partnerships at Visa Inc.‘s Visa Direct division. “I think it’s the present.” The comment emerged during a panel discussion featuring executives from Visa, money-movement processor TabaPay, and OneUnited Bank, the nation’s largest Black-owned bank.
Consumer Expectations Reshape Financial Services Landscape
Analysts suggest the shift toward immediacy reflects broader changes in consumer behavior across financial services. Visa’s research from the “Banking and Brokerage Consumer Study 2020″ surveyed 1,957 U.S. consumers and revealed a clear “cost of inaction,” with 74% of consumers reportedly willing to switch banks for real-time payments capability.
“Nobody wants to wait for their money anymore. In fact, nobody wants to wait for anything anymore,” Petri stated, emphasizing that the demand for speed extends beyond initial account funding to recurring deposits, peer-to-peer payments, and various real-time computing applications.
How Real-Time Account Funding Actually Works
The report states that account funding transactions (AFTs) function similarly to supercharged purchase transactions. When a customer enters debit card credentials to fund an account, the system pings the issuing bank in real-time to verify the account status and available funds. If authorized, funds are temporarily blocked, and the receiving institution can immediately update the customer’s balance.
Jim Slocum, SVP and CIO at OneUnited Bank, explained that for their customers, many of whom live paycheck to paycheck, “cash flow and availability of funds is really important to them in their daily life.” This understanding prompted the bank to prioritize real-time solutions, particularly for customers historically excluded from mainstream banking.
Operational Benefits Beyond Customer Satisfaction
According to the analysis, institutions implementing real-time funding experience tangible operational improvements. OneUnited began using card funding in 2017 and saw immediate transformation. “All of a sudden 95% of our accounts were funding through the card,” Slocum recalled. The bank reportedly experienced fewer “Where’s my money?” calls and fewer operational dead ends where applications passed identity checks but failed at funding.
Tim Astanov, Chief Product Officer at TabaPay and previously known for industry developments, noted that AFTs now comprise a large share of their growth. The practical reason is simple: most consumers already have cards in their pockets, and using them to fund accounts is both familiar and nearly instantaneous.
Building Successful Real-Time Funding Programs
The panel identified several critical factors for implementing effective real-time funding:
Dual Message Approach: Both Astanov and Slocum championed authorizing first and capturing later. This “secret sauce” lets banks personalize messaging, avoid wasted downstream work, and still deliver immediate funding once decisions are finalized.
Layered Security: Financial institutions can selectively use value-added services like Visa’s Account Name Inquiry, which compares the name on the funding card to the application name. When combined with address verification and Visa Secure 3D Secure protocols, these create layered defenses without requiring additional steps for every transaction.
User Experience Optimization: While authorization occurs instantly, settlement typically posts the next day. Many banks effectively “front” funds to deliver real-time experiences, then receive settlement later. Processors can help optimize these flows to maintain both customer satisfaction and treasury hygiene.
Operational Reliability: Astanov stressed the importance of direct connections to multiple networks and sponsor banks to maintain “five nines” uptime while managing back-office heavy lifting like settlement, reporting, and exception handling.
Reduced Friction: Emerging technologies like “tap-to-add card” allow customers to tap physical cards on phones to securely load credentials instead of typing 16-digit numbers. Slocum described seeing this feature as “so fast…so impressive…and so futuristic.”
Strategic Implementation Advice from Industry Leaders
Panelists offered clear guidance for financial institutions considering real-time funding implementation:
“Don’t wait,” Petri urged. “If you are customer-centric and you care about your consumers…turn on real-time account funding.” According to the executive, clients typically start with new account funding and quickly expand to recurring deposits, real-time withdrawals, and additional account types.
Astanov recommended choosing partners that can scale alongside institutional needs. “You want a partner to grow with,” he said, noting that many institutions begin with single flows like me-to-me transfers before expanding to additional use cases.
Slocum emphasized keeping customer experience as the primary focus. “The reason you’re doing it is to get your customer a better experience,” he stated, noting that the approach results not just in speed but fewer dead ends, fewer support calls, and smoother first impressions that set positive relationship tones.
The consensus suggests that while real-time account funding alone may not win customers, slow funding can definitely lose them. With technology ready, consumer expectations set, and operational playbooks available, the future of instantaneous financial services has reportedly already arrived. As the industry continues to evolve with related innovations and market trends, the clock on “real time” now starts at customer signup.
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