First Internet Bank Selected for FedNow Service Pilot Program
March 31 2021 - 10:15AM
Business Wire
First Internet Bank to shape the future of
instant payments
First Internet Bank today announced its participation in a pilot
program for the FedNow Service, the Federal Reserve’s instant
payments network. This collaboration further evidences a commitment
to digital banking and faster payments on the part of First
Internet Bank, the nation’s first state chartered, FDIC-insured
institution to operate entirely online.
Expected to launch in 2023 or 2024, the FedNow Service
alleviates pain points often associated with instant payments for
consumers, small businesses and financial institutions:
- Consumers will have more control over their personal
finances, with the ability to avoid late fees and overdrafts, as
payments and bills can be made on the due date, rather than days
ahead.
- With real-time payments, small businesses receive funds
immediately, increasing cash flow and significantly reducing the
cost of checks and payment processing fees.
- Financial institutions will derive benefits associated
with safe, efficient instant payments.
“Since its inception, First Internet Bank has sought to deliver
a more flexible banking model to meet the evolving needs of our
personal and small business customers,” said Anne Sharkey, SVP of
Operations. “Our participation in the FedNow pilot allows us to
bring two decades of leadership in the industry to foster change
within the instant payment sector.”
In its role, First Internet Bank will help shape the pilot
program’s features and functions, provide input into the overall
user experience and ensure readiness before the program debuts.
The Federal Reserve has direct connections with more than 10,000
banks allowing all parties, including smaller financial
institutions, to benefit from the FedNow Service. For more
information about the Federal Reserve and the FedNow Service, visit
www.frbservices.org/index.html. For more information about First
Internet Bank, visit firstib.com.
About First Internet Bank
First Internet Bank opened for business in 1999 as an industry
pioneer in the branchless delivery of banking services. With assets
of $4.2 billion as of December 31, 2020, the Bank provides consumer
and small business deposits, consumer loans, residential mortgages
and specialty finance services nationally. The Bank also offers
commercial real estate loans, commercial and industrial loans, SBA
financing and treasury management services. Additional information
about the Bank, including its products and services, is available
at www.firstib.com. The Bank is a wholly-owned subsidiary of First
Internet Bancorp (Nasdaq: INBK). First Internet Bank is a Member
FDIC.
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version on businesswire.com: https://www.businesswire.com/news/home/20210331005666/en/
Media Contact: BLASTmedia for First Internet Bank Ryan
Hecker firstib@blastmedia.com
Investors/Analysts Contact: Paula Deemer Investor
Relations, First Internet Bancorp (317) 428-4628
investors@firstib.com
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