First Internet Bank in Fishers is participating in a pilot program for the FedNow Service, the Federal Reserve’s instant payments network. The bank says the collaboration is part of its commitment to digital banking and faster payments.
The program is expected to launch in 2023 or 2024.
“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, senior vice president 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.”
According to the bank, the FedNow Service provides several benefits, including helping users avoid late fees and overdrafts by giving the ability to make payments on the due date rather than several days ahead of time. Additionally, small businesses will have the ability to receive funds immediately, which will increase cash flow and reduce the cost of checks and payment processing fees.
First Internet Bank says it will help shape the pilot program’s features and functions, provide input into the overall user experience and ensure readiness before the program debuts.