Digital Grasshopper Bank will roll out an improved check-clearing process this year to streamline the time between depositing a check and gaining access to the funds. 

Check deposits are “a complicated process in the industry,” Grasshopper CEO Mike Butler told Bank Automation News, noting, Grasshopper is “working toward giving people access to their money a little bit quicker.” 

The tool, designed to benefit the small business market, will give clients immediate access to their money and reduce the time and risk associated with the backend of clearing the check, Butler said. 

According to data analytics and credit reporting company Experian, a check typically clears within two business days, but the process can take longer depending on a bank’s policies, the size of the check and when the check is deposited. 

Some banks, like $1.9 trillion TD Bank, make $100 available immediately upon deposit and the rest of the money available the next day, according to Experian.  

Other banks look to fintechs to help speed up their check-clearing processes. For example, fintech GoCardless helps automate administrative tasks and speed access to funds. 

Companies using GoCardless services include DocuSign, Plum and Epson. 

Grasshopper Bank’s Director of Product Luther Liang will speak at Bank Automation Summit U.S. 2024 on Monday, March 18, at 3:15 p.m. CT, in Nashville, Tenn.

Get ready for the Bank Automation Summit U.S. 2024 in Nashville on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.