Customers Bank Collaborates With Tassat To Build A Blockchain-Based B2B Payments Network To Satisfy The Needs Of Corporate Customers
Customers Bank, Tassat | May 22, 2021
The subsidiary of Customers Bancorp, Inc. a bank holding firm named as Customers Bank joins hands with Tassat, a leading supplier of blockchain solutions for digital payments. They announced today that Customers Bank will use Tassat's proprietary platform TassatPay® Network, which includes real-time B2B payments and convergence between digital and legacy payment rails. The collaboration would result in improved payments capabilities for the bank's company clients as well as low-cost core deposit development for the bank.
Customers Bank, known for its high-tech and high-touch method, has corporate clients in financial exchanges, commercial real estate, hospitals, hospitality, banking, finance, renewable energies, and manufacturing which could benefit directly from this capability.
After 2015, the bank has been a pioneer in digital financial technologies, bringing groundbreaking services to millions of Americans across a variety of channels, including its BankMobile student loan refund service and collaborations with T-Mobile Money and other prominent fintech partnerships. The BankMobile company was spun off as BMTX earlier this year.
Customers Bank is one of the top 5 Paycheck Protection Program lenders in the United States, with over 320,000 PPP loans totaling more than $9 billion provided through a combination of financial technology and conventional banking channels. With great success in low- and middle-income regions, the bank's technological prowess enabled it to provide much-needed financial assistance to small business owners and independent contractors across United States.
Tassat was chosen by Customers Bank because of its financial technology capabilities and track record of operating a high-volume B2B payments network. It intends to work with customers to resolve their real payment issues by using the TassatPay Network and creating payments ecosystems with their trading partners. Customers Bank sees TassatPay as the next step in its financial services evolution.
TassatPay Network makes use of blockchain technologies to tokenize US dollar deposits at banks in order to provide stable, zero friction instant transfers, removing traditional obstacles such as overnight settlement, transmission delays, cut-off hours, and high transaction fees. It provides an API that enables bank customers to integrate its functionality into their own applications. Tassat's first version was unveiled in 2019 and since then has handled billions of dollars in transactions across digital tracks.
“B2B payments have lagged behind consumer payments in terms of innovation, creating a significant opportunity for digital transformation.” We are excited to collaborate with TassatPay Network as the foundation of our B2B payments strategy,” said Sam Sidhu, Vice Chairman and Chief Operating Officer of Customers Bank. “We anticipate that our clients in key verticals will invite their key trading partners to join TassatPay, giving us new clients and low-cost deposits.”
“Most businesses are constrained by the limitations of antiquated payment rails,” said Ron Totaro, CEO of Tassat. “Customers Bank is at the forefront of digital evolution and fintech partnerships, so we are thrilled to provide an on-ramp to B2B digital payments for them and their business clients.”
Customers Bank recently announced the launch of offices in Orlando, FL and Dallas, TX, as well as the reopening of an office in Chicago, IL, as the first step of a nationwide expansion.These teams of experienced commercial bankers will provide clients in the emerging markets with the advantages of the TassatPay Network.
About Customers Bank
Customers Bank, a subsidiary of Customers Bancorp, Inc. a bank holding company, is a full-service super-community bank with assets of approximately $18.8 billion at March 31, 2021. A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking and lending services to small and medium-sized businesses, professionals, individuals, and families. Services and products are available wherever permitted by law through digital-first apps, online portals, and a network of offices and branches.
Tassat Group Inc. is a New York-based fintech company that provides blockchain-based technology solutions for digital payments. It delivered the first blockchain-based B2B digital payments platform that was approved by a major bank regulator, and has transacted billions of dollars to date.