Frost Bank Offers Early Pay as Old-School Lenders Ape Fintechs

Cullen/Frost Bankers Inc. will allow customers to access deposits two days early as traditional lenders look to drum up business by mimicking their financial-technology rivals.

Frost said its clients with direct deposit will be automatically enrolled in the new “Early Payday” feature when it rolls out July 13. Frost will fund their accounts as soon as it receives a notice of payment from the Automated Clearing House Network. When those deposits arrive, the bank will pocket them to cover the amount floated ahead of time.

“Everyone doesn’t always need it all the time, but there are times when customers need ...