Community financial institutions build better communities

Vibrant communities, whether located in small towns, suburbia or big-city neighborhoods, inspire our story. Community financial institutions strengthen and improve the local community. They’re the foundation of the American dream with ideals of opportunity, equality and independence for success and prosperity.

How it all Started

Our story began in 1975, when a group of Midwest community banks realized their future was threatened by large, regional savings and loans. The community banks needed to find a way to access the same technology as the big banks and control an Electronic Funds Transfer system.

In response, the Iowa Bankers Association created an EFT task force to develop a solution. This enabled a group of minds to come together and formulate much more than an EFT network; the foundation of SHAZAM was created.

At the center of this task force was Dale Dooley. Dale was a craftsman, by trade a bricklayer and carpenter, who later worked as a computer programmer. Dale had a passion for the banking industry and a strong vision for the payments system.

The task force understood the ins and outs of how transactions were handled, along with the ability to join the technical aspects with consumer behavior. The collaboration led to new thinking and new solutions.

In 1976, the task force began development of the first shared EFT network in the nation and revolutionized the industry in the process with a single-message system. The functional and design specifications of the single-message system were freely shared among national and international industry players and is still the industry model today.

Shaping the Industry and Advocating Tirelessly

In 1981, SHAZAM became the first company in the world to implement and operate an integrated point-of-sale pilot program.

Our trend of industry leadership continued in 1986 with the introduction of fuel pump terminals that allowed cardholders to purchase fuel with their ATM cards. Three years later, SHAZAM partnered with the state of Iowa and piloted the first Electronic Benefit Transfer program in the country to successfully integrate with a public-sector EFT system.

In the late ‘90s, a national card association increased participation fees. In response, SHAZAM formed ITS Bank and serves as a principal member of the association, saving our participants millions of dollars every year.

The decade that followed offered an explosion of technology, a shift in consumer behavior and new waves of industry regulations. SHAZAM continues to be an industry leader by providing digital and core solutions, advocacy, proactive fraud prevention and security services, and marketing support.

Rooted in our Mission  

Dale Dooley remained SHAZAM president and CEO for over 25 years. Our founder’s family members continue to work for our organization today.

SHAZAM remains member-owned, independent, doing what’s right for our participants vs. shareholder profits. Our nonprofit culture means we work to save our members money and reinvest in a future that nurtures their success.

Today, we deliver a portfolio of products and services that pave the way for community financial institutions to lend, serve, employ and prosper. Access to cost-effective, top-notch technology provides our participants a level playing field with the big institutions.

We’ve dedicated top resources to government relations, advocacy efforts and strategic association partnerships. SHAZAM continues to expand and invest in the network coast-to-coast, maintaining a commitment of flexibility.

Prepared for a Bright Future

We’re on course with an unprecedented investment into innovation, research and development to deliver solutions that protect the future of community financial institutions. We’re planning ahead for the next generation of consumers, ensuring our participants have the products and services they demand and expect, in a cost- effective way.

Key Milestones

  • Developed the single-message system that continues to be the standard for networks today
     
  • Implemented and operated the first integrated POS pilot program in the world, forever changing the retail industry
     
  • Integrated the PIN at the POS to allow for safe and convenient transactions, as well as making it cost-effective for debit services
     
  • Developed the Card Authorization Service, allowing financial institutions to issue and authorize cards without relying on competitors
     
  • Partnered with Gasboy® to introduce fuel pump terminals, allowing cardholders to pay at the pump
     
  • Produced the SHAZAM generic card program, allowing clients to issue debit cards at a fraction of the cost
     
  • Partnered with the State of Iowa to pilot the first Electronic Benefit Transfer in the country
     
  • Developed the card services-member association, allowing community financial institutions to issue national-brand credit cards
     
  • Created the Privileged StatusTM program, a surcharge-free ATM alliance open to all SHAZAM participants
     
  • Formed ITS bank and serve as a principal member, saving our participants millions of dollars each year
     
  • Acquired Cardinal Software, INC., later becoming ITS, Inc. and being branded today as SHAZAM® Core Services, to provide a powerful option for core software
     
  • Developed Brella® ,a mobile app, to give cardholders a safe, easy and fast solution for fraud detection and account management
     
  • Served as a founding member of the Debit Network Alliance, which promotes standards for EMV® and the common Application Identifier
     
  • Established a government relations division to advocate for community financial institutions on payments issues at state and federal levels