CheckAlt Report: 75% of Banks Target Receivables Modernization as Commercial Competition Heats Up

Quick Summary

New research from CheckAlt reveals that 75% of financial institutions are entering a critical receivables modernization window over the next 18 months. Driven by the need for commercial client retention and seamless core integration, banks are shifting focus from simple cost reduction toward strategic revenue growth and treasury competitiveness.

Why is Receivables Modernization a Priority for Banks Now?

The receivables modernization trend is no longer just about back-office efficiency; it has become a critical defensive strategy for U.S. banks and credit unions. According to the CheckAlt and Datos Insights report, 75% of financial institutions are currently evaluating or planning to upgrade their payment technology within the next year and a half. This urgency is fueled by evolving commercial expectations as businesses demand real-time visibility and automated workflows.

• 67% of institutions plan to increase technology spending specifically for receivables.
• 88% of respondents believe enhanced capabilities directly support commercial banking revenue.
• 30% of banks fear losing clients to more technologically advanced competitors.

“The data shows a concentrated evaluation window for receivables and payment processing technology,” said Benjamin Nestor, Strategic Advisor, Commercial Banking & Payments at Datos Insights. “For banks and credit unions, the decision is increasingly tied to commercial client expectations, operational efficiency, revenue opportunity, and the practical realities of integration and execution.”

What are the Main Barriers to Upgrading Payment Technology?

While the desire for receivables modernization is high, financial institutions face significant internal hurdles. The study highlights that 80% of FIs view seamless core integration as the absolute priority when selecting a vendor. Without deep integration, banks struggle with manual reconciliation errors and fragmented data visibility that frustrates commercial treasury clients.

• 60% of FIs cite competing IT priorities as the primary barrier to progress.
• Internal resource constraints often stall the deployment of integrated payment platforms.
• Operational complexity remains a challenge for banks with under $30 billion in assets.

“Receivables and payment processing decisions are becoming more strategic for banks and credit unions,” said Patrick Law, president and CEO of CheckAlt. “The findings reinforce that modernization is no longer only about operational efficiency. It is increasingly tied to how institutions retain commercial clients, compete for treasury relationships, and support long-term revenue growth.”

How Does Modernization Impact Commercial Revenue Growth?

Investing in receivables modernization is increasingly viewed as a revenue-generating activity rather than a cost center. By providing integrated lockbox solutions and digital payment channels, banks can capture a larger share of the treasury management wallet. The research indicates that the next 18 months will define the competitive landscape for the next decade of commercial banking.

• 88% of FIs see a direct link between payment tech and top-line growth.
• Treasury competitiveness is now the primary driver for vendor selection.
• Faster information access is the top demand from modern business clients.

“The next 18 months represent an important planning window for financial institutions evaluating how receivables can support commercial client relationships, treasury growth, and long-term revenue strategy,” said Jason Schwabline, chief commercial officer at CheckAlt. “The decisions made during this period will shape how institutions compete for commercial business in the years ahead.”

FF NEWS TAKE:

This report confirms that receivables modernization has moved from the 'nice-to-have' list to a 'survival requirement' for mid-tier banks. As fintechs and Tier-1 banks offer increasingly frictionless treasury experiences, smaller FIs risk a mass exodus of commercial deposits if they don't act within this 18-month window. The shift from cost-saving to revenue-defense marks a significant turning point in how banks value their payment stacks.