The Pittsburgh-headquartered bank is partnering with DailyPay and The Clearing House to help the fintech facilitate its real-time payments offering to a wider base, per PR Newswire. DailyPay’s solution enables its customers to receive their earned wages instantly—instead of waiting the typical 1–3 business days for funds to clear, which could lead to customers paying high fees or interest rates due to cash flow issues.
PNC’s involvement in enabling instant wage access aligns with its other recent initiatives geared toward underserved consumers—a key neobank audience.
If PNC brought instant wage access to its own retail customers, it would bolster its ability to help customers avoid fees, making it a more attractive choice as a user’s primary bank. According to Insider Intelligence’s September 2020 US Mobile Banking Competitive Edge survey, fees are far and away the most important factor customers would consider before choosing a new bank. Other banks have lessened their reliance on overdraft fees, but PNC has taken one of the most active approaches to separating itself from controversial practice. An instant paycheck solution would further cement that position.
Note: This article was updated on June 17, 2021, to clarify that PNC is not introducing an instant wage feature itself, but is instead helping DailyPay facilitate its own real-time payments feature.