NBID, the bank-owned deposit network, today announced the launch of real-time transaction handling for reciprocal deposits. The new capability allows depositors at member banks to earn interest the same day they deposit funds, which has historically been missed by the T+1 processing performed by most providers. With this release, NBID has moved the roughly $500bn reciprocal market from T+1 to T accrual, a major milestone for the U.S. banking system.

For the past several decades, legacy integrations have typically operated with T+1 processing, which means depositors in legacy networks often do not earn interest on their funds the day they are deposited. A depositor with growing balances can therefore lose out on meaningful interest. NBID’s innovation with core integrations allows transaction dates on NBID’s ledger to continuously remain in sync with the bank’s core, so statements and interest accruals are in lock-step, month-end included. Aligned interest is handled day-over-day by NBID so bank teams do not need to change any processes once opted into the functionality. The technology development for real-time transaction handling was led by ModernFi, NBID’s network operator.

“Real-time transaction handling is revolutionizing how deposit networks work,” said Matteo diMayorca, Director of Product at ModernFi. “For years, banks have relied on legacy technology that wasn’t built with depositors in mind and is underpinned by rigid gaps in transaction timing. As a bank-owned network, NBID’s mission is to put banks and their depositors first. Real-time transaction handling is the latest enhancement built for that purpose.”

“We are thrilled to work with NBID to build a product that truly improves the experience for our customers,” said Jason Hyska, CEO at Sturgis Bank. “Real-time transaction handling is a significant innovation for our depositors, while also taking work off our team. It is a win-win.”

“Everything we build starts with our banks and the customers they serve,” said Raleigh Hansen, Senior Software Engineer at ModernFi. “By working closely with our design partners and core banking providers, we have been able to solve the complex technical challenges of delivering a superior product to our clients, without adding friction.”

“The innovation that NBID has brought to reciprocal network integrations in a short period of time is remarkable,” said Nancy Marnocha, Implementation Specialist for ModernFi and former 30-year veteran of FIS where she specialized in Cash Manager implementations. “The ability to correctly align interest with a depositor’s transactions is a step change in the customer experience and moves the entire industry forward.”

Banks integrated with Fiserv through Communicator Open receive real-time transaction handling automatically, with no action needed. Banks integrated with Jack Henry, FIS, custom SFTP/API, and those not yet integrated, can work with their Regional Director to get set up.

The full list of NBID’s over 870 member banks is available at nbid.com/bank-list.

About NBID and ModernFi

NBID is the bank-owned reciprocal deposit network. Representing over 870 bank members in all 50 states, NBID ensures that banks have ownership, oversight, and alignment over their critically important deposit infrastructure. NBID’s Board of Directors is composed of representatives from 14 leading community and regional institutions, and member banks receive preferential pricing and are eligible for profit sharing.

ModernFi empowers financial institutions of all sizes to better serve their communities. Through ModernFi, institutions can grow, retain, and manage their deposit base by sourcing deposits, sweeping funds, and providing additional security to depositors. Backed by Canapi, Andreessen Horowitz, Intercontinental Exchange, and leading institutions, the firm provides market-leading deposit management built on a modern tech stack and a foundation of compliance. Learn more at modernfi.com.

ModernFi and NBID are not banks. Deposit insurance covers the failure of insured institutions, not NBID or ModernFi. Deposits are placed at FDIC-insured institutions in amounts designed to be eligible for pass-through insurance up to $250,000 per depositor, per institution, per ownership category. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. ModernFi serves as manager of NBID LLC.

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