Fifth Third Bank announced the addition of Early Pay for federal tax refunds through its Fifth Third Momentum Checking digital banking platform as part of the bank’s ongoing tech modernization initiatives.

Web- and mobile-based Momentum Checking, which launched in 2021 and has more than 1 million customers, offers quick access to cash, avoidance of overdraft fees and financial management, according to a Fifth Third release.

Early Pay initially offered customers access to their paychecks up to two days earlier and will offer access to tax refunds up to five days early starting at the end of January, according to the release.

“Nearly 30% of Americans will rely on their tax refunds to make ends meet. Fifth Third wants to ensure its customers have access to their own money as soon as possible to pay bills on time and meet their everyday needs,” Ben Mendolsohn, director of product management at Fifth Third, told Bank Automation News.

Through the Cincinnati-based bank’s platform, when customers are filing their taxes, clients can select that they want their refund directly deposited to their Momentum Checking account, Mendolsohn said, noting, in-house “we’ve developed a proprietary capability Early Pay and continue to expand on it with this recent innovation.”

In the fourth quarter of 2022, the bank’s technology and communications spend increased 8% YoY to $111 million as it prioritized its digital efforts including the investment in Momentum Banking, Fifth Third Chief Executive Tim Spence said during the bank’s Q4 earnings call.

The early tax refund trend follows the 2021 launch of Tax Refund Unlock which was created by three fintechs: Atomic, Klover and Column Tax.

Fifth Third’s Chief Information Officer Jude Schramm will speak at the Bank Automation Summit US 2023, taking place March 2-3 in Charlotte, N.C. Learn more and register for Bank Automation Summit US 2023.