Tracing the Impact of Payment Convenience on Deposits: Evidence from Depositor Activeness

We thank Jules van Binsbergen, Juliane Begenau, Jonathan Berk, Markus Brunnermeier, John Cochrane, Fernando Cirelli, Itamar Drechsler, Wenxin Du, Darrell Duffie, Thomas Eisenbach, Mark Egan, Paul Goldsmith-Pinkham, Itay Goldstein, Urban Jermann, Arvind Krishnamurthy, Lu Liu, Hanno Lustig, Yiming Ma, Aurel Mäder, Camelia Minoiu, David Musto, Jonathan Parker, Jonathan Payne, Jonathan Pogach, Monika Piazzesi, Nick Roussanov, Sergey Sarkisyan, Christoph Schiller, Philipp Schnabl, Antoinette Schoar, Phil Strahan, Adi Sunderam, Quentin Vandeweyer, Olivier Wang, Jinyuan Zhang and Haoxiang Zhu for helpful comments. We thank participants at Bank of Canada Workshop on the Future Monetary System, Deutsche Bundesbank International Conference on Payments and Securities Settlement, EFA, FDIC Annual Banking Conference, Fed Board-Maryland Short-Term Funding Conference, FIRS, Gerzensee Conference on Financial Intermediation, Georgia Tech-Atlanta Fed Household Finance Conference, IRMC, OCC Bank Research Symposium, PNWFC, Princeton Macro-Finance Conference, SFS Cavalcade, SITE, WAPFIN at Stern; Boston Fed, Columbia, Copenhagen Business School, CUHK, Harvard, Iowa State, LSE, MIT, New York Fed, Peking University, Philadelphia Fed, Tsinghua, and Wharton. We thank Ding Ding, Kourosh Ghobadi, Hossein Poorvasei, Xinyi Wang, and in particular, Xinrong Yao for excellent research assistance. An earlier version of this paper was titled “The Making of an Alert Depositor: How Payment and Interest Drive Deposit Dynamics.” The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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