Westside State Bank Launches New FedNow Service for Instant Payments Through SHAZAM
posted on Monday, September 18, 2023 in Company News
Westside, IA (September 18, 2023) – As a FedNow® pilot participant, Westside State Bank, a community bank in Iowa, is one of the first financial institutions in the U.S. to implement the Federal Reserve’s new FedNow Service for instant payments. Westside State Bank has access to the FedNow network through SHAZAM, Inc., a national debit network and provider of core, EFT and other financial services to community financial institutions. Through the FedNow Service and SHAZAM’s processing capabilities, Westside State Bank will enable its customers to receive payments instantly from other FedNow participants, around the clock, with instant clearing and settlement between the sending and receiving financial institutions.
“Westside State Bank is proud to partner with The Federal Reserve, Bankers’ Bank, and SHAZAM on this real-time payments advancement,” said Matt Lujano, President and CEO of Westside State Bank. “The bank is excited to be an early adopter in what we see as the future of banking. At Westside State Bank, we offer customers customized service backed by technology that accommodates their ever-evolving financial needs.”
Westside State Bank started offering instant payments to its customers in early 2021 through The Clearing House (TCH) RTP® system and SHAZAM. Now, SHAZAM is providing Westside State Bank access to an additional instant payments network through its dedicated connection to the FedNow system. Participation in the RTP and FedNow systems extends the bank’s services to include a new set of account-based, instant payment transactions and enables them to provide more benefits to their accountholders.
SHAZAM is dedicated to supporting faster payments, and we’ve taken a big step forward by making it possible for clients to receive instant credit transactions," said Janet LaFrence, SHAZAM’s Faster Payments Program Manager. “We’ve historically been pioneers in providing innovative faster payments solutions. By integrating with the RTP and FedNow systems, we've expanded our capabilities to handle a new range of instant payment transactions and value-added services. We’re committed to investing our time and resources now to build the infrastructure that’ll enable our clients to be ready to serve the next generation of consumers.”
Bankers’ Bank provides correspondent banking services to Westside State Bank, which allows the bank to manage interbank settlements for FedNow and RTP transactions more efficiently. Bankers’ Bank offers an efficient way for financial institutions to monitor and manage settlements for instant payments.
“We’re honored Westside State Bank chose Bankers’ Bank to facilitate settlement of FedNow credit transactions for its customers,” said Todd Koehn, Bankers’ Bank’s VP, Faster Payment Solutions. Westside’s implementation of FedNow highlights that community banks of all sizes can utilize instant payments to help customers in our ever-changing digital world.”
“As an early adopter of the FedNow Service, Westside State Bank demonstrates dedication to innovation,” said Ken Montgomery, Federal Reserve Bank of Boston first vice president and FedNow program executive. “Their leadership paves the way for industrywide progress, setting an example for others wanting to play a role in supporting a modernized U.S. payment infrastructure.”
About Westside State Bank
Westside State Bank first opened the doors of our Halbur, Iowa location in 1906. Since those early days, we've been dedicated to offering the conveniences and value of a big bank, while still maintaining the integrity and charm of a community bank — where decisions are made locally and interactions are handled by people you know and trust. We are proud to have expanded our operation in order to cater to the people of Western Iowa, Eastern Nebraska and beyond. Learn more at westsidestate.bank.
SHAZAM is the only nationwide independent, member-owned debit network, processor and core provider supporting financial institutions. Since we don’t answer to shareholders, we can reinvest profits in technologies our clients need as they serve the next generation of consumers. SHAZAM ensures our clients have the products and services they expect in a cost-effective way. Founded in 1976 and headquartered in Iowa, we’re a leader in payments and financial technology, with a simple mission: Strengthening financial institutions. Visit us today at shazam.net.
About Bankers’ Bank
For more than 40 years, Bankers’ Bank has created an elite product suite customized to meet your needs, keeping your bank competitive and thriving in your community; allowing you to focus on what matters most, building meaningful relationships and growing your community. As the leading provider of financial products and services for over 600 community banks, our only focus is on helping you succeed.
As a bank for banks, our partners enjoy a wide array of banking and technology services, backed by experts who will match you with the best solutions to help you stay ahead of your competitors. Whether it’s Payments and Cash Management, Commercial Banking and Leasing, Wealth Management, Bank Cards, Investments or Residential Mortgage Solutions we utilize the latest technologies to bring you solutions that help you meet the demands of your customers.
Bankers’ Bank is your partner, never competing with you for business. Learn about the benefits of partnering with Bankers’ Bank by visiting, BankersBank.com.
About the FedNow Service
The Federal Reserve Banks developed the FedNow Service to facilitate nationwide reach of instant payment services by financial institutions — regardless of size or geographic location — around the clock, every day of the year. Through financial institutions participating in the FedNow Service, businesses and individuals can send and receive instant payments at any time of day, and recipients have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments. Access is provided through the Federal Reserve’s FedLine® network, which serves more than 10,000 financial institutions directly or through their agents. For more information, visit FedNowExplorer.org (Off-site).
Crista Herbert, Sr. Public Relations Specialist
SHAZAM, Inc. and ITS, Inc. provide this blog for general informational purposes only. Our blog may be shared by a direct link wherein the content remains as originally presented and has not been altered. SHAZAM, Inc. and ITS, Inc. assume no responsibility for errors or omissions in the contents on the blog. By using this blog, reader agrees that the information published does not constitute nor is a substitute for legal advice which should only be sought from a qualified, licensed attorney.
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