Wells River Savings Bank Implements New FedNow Service for Instant Payments With SHAZAM
posted on Monday, September 18, 2023 in Company News
WELLS RIVER, VT (Sept. 18, 2023) – As a FedNow® pilot participant, Wells River Savings Bank, a community bank in Vermont, is one of the first financial institutions in the U.S. to implement the Federal Reserve’s new FedNow Service for instant payments. Wells River 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, Wells River will enable its customers to receive payments instantly from other FedNow participants, around the clock.
“Our customers need financial technology tools that align with their personal and business needs. Implementing FedNow is an important next step for us, allowing us to deliver more instant payments to our customers, thereby improving their customer experience,” said Allison Ingerson, Vice President-Bank Operations at Wells River Savings Bank. “Working with SHAZAM gives us the confidence that we will be able to achieve these goals, while at the same time providing our customers with banking capabilities they have come to expect from us.”
Wells River Savings Bank started offering instant payments to its customers in early 2021 through The Clearing House (TCH) RTP® system and SHAZAM. SHAZAM has historically been at the forefront of providing innovative faster payment solutions. Participation in the RTP and FedNow networks extends the bank’s services to include a new set of account-based, instant payment transactions and related value-added services.
“As a nationwide network, it’s important to SHAZAM that our clients have access to both the RTP and FedNow networks and accompanying data so they can offer instant payments capabilities to their accountholders,” said Janet LaFrence, Faster Payments Program Manager at SHAZAM. “This is just another way we strengthen financial institutions as they serve the next generation of consumers.”
Atlantic Community Bankers Bank (ACBB) provides correspondent banking services to Wells River, which allows Wells River to manage interbank settlement for FedNow transactions. As a bankers’ bank, ACBB offers an efficient way for financial institutions to monitor and manage settlements for instant payments. ACBB is committed to working with community financial institutions to integrate with all payment systems, including the FedNow and RTP instant payment networks.
“ACBB is delighted with the opportunity to work collaboratively with the Federal Reserve, SHAZAM and Wells River Savings Bank on this important pilot,” said William Booth, Head of Product Strategy & Innovation at ACBB. “We are fortunate to have innovative, industry-leading, community-oriented FIs among our clients. We look forward to continued collaboration with Wells River on its participation in the FedNow and RTP networks, including the development of new use cases and support for how Wells River can compete even more effectively in the communities it serves.”
“As an early adopter of the FedNow Service, Wells River Savings 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 Wells River Savings Bank
Wells River Savings Bank is a $200 million Vermont based mutual savings bank with five branch locations along the Vermont side of the Connecticut River. The bank has an interesting heritage. In 1833, the Bank of Newbury was incorporated to serve the communities of Wells River and the surrounding villages. It was a state bank until 1867, when it adopted a national charter, and became the National Bank of Newbury. The bank focused on checking accounts and commercial loans. In 1892, the directors saw an opportunity to expand their services to savings accounts and residential mortgages and joined with community members to charter the Wells River Savings Bank. For our customers and communities, the two banks were known as the “Wells River Bank” or the “Good Neighbor Bank”. In 1981, reacting to changes within the banking industry, the two banks merged under the management of the savings bank.
We are proud of our mutual bank heritage. We are owned by our depositors, so our profits stay local to help build our communities. Our mission remains consistent with the vision of our founders in 1833 and 1892, to make our communities better places to live, work, and raise families. The bank is a member FDIC and an Equal Housing Lender. To find out more about Wells River, visit wellsriversavings.com.
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 demand and 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 Atlantic Community Bankers Bank
Owned by community Financial Institutions, ACBB delivers outstanding correspondent and payment capabilities with a personal touch. We advocate for the industry, aggregate services to drive economies of scale and guide our clients by extending resources and expertise as a trusted partner. To find out more about ACBB, visit acbb.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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