Independent Banker - February 2024 - 22

PORTFOLIO
ICBA payments
resources
When determining the right
next steps for their payments
plans, community banks can
lean on ICBA resources to
help guide their decisioning.
 ICBA Payments delivers
payments solutions for
community banks that
speak to the unique needs
of their customers and
communities.
 ICBA ThinkTECH
identifies fintech
providers whose products
and services address
community bank needs.
 ICBA LIVE, taking place
March 14-17 in Orlando,
offers sessions diving
into bank strategy and
leveraging payments as a
core component of a databased
approach.
Community banks also
should not underestimate the
power of their networks.
" I would start with peer
Koger Propst, president
and CEO of ANB Bank,
says that being a steady,
consistent lender is
what customers need
right now.
resources. Kick the tires and
figure out what other people
are saying, " says Lance
Noggle, ICBA's senior vice
president, operations and
senior regulatory counsel.
" We're getting a lot of that
with FedNow. People are
reaching out to us and asking
us questions, and we have
been providing resources.
So, you can always ask us,
and we can help direct you. "
Bank Independent's
FedNow experience
As a FedNow early adopter, Bank
Independent in Sheffield, Ala., has
been in receive-only mode, moving
toward send functionality.
" It's that crawl-walk-run model for
us, " says Kelly Burdette, senior vice
president, digital and products. " We
really wanted to start slow, and we felt
that going receive really helped us to
build out operational readiness and
effectiveness to prepare for the continued growth of this. "
He likens instant payments to an interstate system, with onKelly
Burdette
ramps
and off-ramps. Receive is like an off ramp-open to traffic.
Send, however, needs some controls around the on-ramp to ensure
a safe and secure flow of payments traffic.
" We still have to build the on-ramps, and we as an industry, we're
building that, " Burdette says. " As we think about those on-ramps,
from a community bank perspective and as an industry, we still
have to control the access to that ramp. "
Since going live with instant payments, Bank Independent has
seen transaction volume climb. First, it started receiving payroll
transactions facilitated by a large payroll provider. But it also has
a property management company as a client that's now receiving
instant payments, giving property management owners and their
agents access to funds quicker.
" Because we can receive those funds and give instant availability
to those funds, we're making a business difference, " Burdette says.
" We're providing a value-add to these business customers. "
their refund than maybe they would
at the bank down the street. "
Planning for implementation
Yet, introducing new payments
solutions comes with its own set of
operational considerations.
In many cases, enabling a new
solution entails a required upgrade
of existing infrastructure. Legacy
system modernization goes hand in
hand with implementing instant or
real-time payments, for example.
" There are a lot of various different
systems in place, " Noggle says. " It's
never planned out like it would be if
you started from scratch. "
Whether they're working with the
core provider for all implementation
or engaging with fintechs to support
payments solutions, community
banks need to start off with a
payments strategy in mind that
includes partner planning, so that
they can methodically work through
the execution.
22 // ICBA Independent Banker // February 2024
Independent Banker - February 2024

Table of Contents for the Digital Edition of Independent Banker - February 2024
