1st Source Bank shares success stories from the first year of the FedNow® Service
1st Source Bank (Off-site), a locally controlled financial institution serving customers primarily in northern Indiana and southwestern Michigan, has been live on the FedNow Service since its launch in July 2023. Andrea Short, president and chief executive officer of 1st Source Bank, had this to say of the bank’s early successes with the FedNow Service:
1st Source Bank
“In our first year with the FedNow Service, our enabled customers have embraced the innovation of instant payments and are reaping the benefits of the FedNow Service in their daily business transactions. From the early days of the FedNow Pilot Program, we understood that instant payments would be a game changer for our customers and a big differentiator for our bank. Watching that come to fruition — delivering the innovative solutions that our customers expect — is thrilling.
“Strategically targeted use cases have been a big contributor to our early success: cash concentration and account-to-account transfers, employer-to-employee payments like reimbursement and same-day payroll, along with other business payments like franchise lease fees and rent payments. Now that our customers have come to understand and regularly leverage instant payments, we are able to expand our targeting to include more locally impactful use cases like utility payments, invoicing for local businesses and requests for payment.
“One of our standout success stories comes from a customer who walked into a banking center with an emergent need — to send money right away to an employee driving one of his company’s trucks. Our customer wasn’t sure how he would send the money and make it available right away, so it was the perfect opportunity to illustrate the unique value of instant payments over traditional payment options. Enabling that customer to send money with the FedNow Service was quick, and the money was delivered to the driver within seconds. Our customer learned firsthand, in real-time, the value of instant payments and we were able to help precisely when our customer needed us to provide a solution.
“Our experience with the FedNow Service has been very positive over this first year. Our close partnerships with our core and service providers made for a smooth adoption and implementation. The flexibility and controls available with the FedNow Service helped us ensure that we had the right safeguards and processes in place, and that our customers feel comfortable and secure when using this new payment system. As our instant payment volume continues to grow, we are pleased to see that this has increased our overall share of payments. This is just the beginning! We look forward to enabling even more customers and adding additional use cases that meet our customers’ needs in the years to come.”
Want to see what other organizations have to say about the FedNow Service? Read more FedNow customer testimonials here.