Why Millions of New Accounts Never Turn Into Real Banking Relationships

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.

Download the Tracker Instant Account Activation: Why Funding Speed Is the New Battleground for Deposit Growth

About “Instant Account Activation: Why Funding Speed Is the New Battleground for Deposit Growth”

The “Money Mobility Tracker®,” a PYMNTS Intelligence collaboration with Ingo Payments, examines how instant account funding is influencing deposit competition and why activation speed has become critical to converting new accounts into active relationships.