Pidgin Partners With Modern Banking Systems to Bring Real-Time Payments to Small Banks

Payments-platform provider Pidgin Inc. will work with Modern Banking Systems, a provider of core bank-processing technology, in an effort to bring real-time payments capability to community banks. Pidgin’s platform supports real-time processing through multiple payment rails, including FedNow and The Clearing House Payments Co.’s Real-Time Payments network.

The deal was driven largely by Modern Banking’s strategy of helping small banks get more out of their core-processing solutions and generate new growth opportunities, says Modern Banking Systems chief executive Michael Cronin.

“Instant payments are gaining traction among consumers and businesses across the U.S., and by partnering with Pidgin, we can provide our clients with the tools they need to give their customers the payment options they now expect,” Cronin says in a statement.

Modern Banking and its parent company, Interstate Business Equipment Inc., support core installations for financial institutions with $8 million up to more than $2 billion in assets.

Pidgin serves as a central connection point to the Federal Reserve’s FedNow real-time payments service, which launched in July, as well as other faster-payments networks, allowing financial institutions to offer instant payment options. In addition, Pidgin’s platform facilitates the exchange of data between a bank’s core processing system, such as Modern Banking’s Essentia platform, and relevant third-party apps, including digital-banking platforms, the bank’s staff and account holders, and payment networks, for the routing and processing of payments.

Pidgin could not be reached for comment.

“Financial institutions need a modern, flexible, and scalable core system that will make it easy to roll out new payment offerings, like the newly launched FedNow Service,” Pidgin chief executive and founder Abhishek Veeraghanta says in a statement. “By integrating Pidgin’s payments platform with Modern Banking Systems’ industry-leading core solutions, more community banks, regardless of size, can offer faster payments to their retail and business customers.”