First Internet Bank

What First Internet Bank does

First Internet Bank of Indiana is a state-chartered, FDIC-insured digital-first bank founded on February 22, 1999 by David Becker as the first internet-only bank of its kind in the United States. Operating exclusively through digital channels with no physical branches, the bank is a wholly-owned subsidiary of publicly traded First Internet Bancorp (ticker: INBK) and serves consumer and commercial customers nationwide. As of late 2025, the bank held approximately $5.6-6.1 billion in total assets and employed 355 full-time equivalents from its headquarters in Fishers, Indiana.

The bank's product platform spans consumer banking (checking, savings including a Money Market Savings paying 3.09% APY, CDs, auto and student loans, a cashback Visa credit card, HSA accounts, and Kids Savings) and commercial banking (Do More Business Checking with unlimited transactions and no monthly fees, Business Savings and CDs, commercial checking, SBA lending, commercial banking, dealer services, and equipment leasing). The technology stack is built on FiNet, the bank's proprietary real-time internet banking platform that processes transactions without batch delays, protected by 128-bit SSL encryption and firewall servers. AI capabilities are deployed primarily through partnerships: the Parlay Finance AI-native Loan Intelligence System integrated into SBA underwriting and the Lumos AI platform for SBA delinquency monitoring, supplemented by an internally developed predictive analytics tool for loan performance forecasting. Distribution is multi-modal: direct-to-consumer via website and iOS/Android mobile apps, dedicated commercial and SBA servicing portals, and banking-as-a-service partnerships with Pool United (multi-user accounts with Visa debit), Jaris/Paysafe (instant payouts to SMBs), and Parlay Finance.

The business model is anchored in net interest income from loans and securities net of deposit costs, augmented by transaction and service fees and credit card income. Q3 2025 adjusted total revenue grew 30% year-over-year to $43.5 million, and Q1 2026 reported revenue of $43.12 million with EPS of $0.29 substantially beating analyst expectations of $0.08. The bank differentiates on a no-branch cost structure that funds competitive deposit rates, fee-free core business checking, and AI-accelerated SMB lending, and pursues growth through embedded-banking partnerships and veteran-business lending initiatives rather than branch expansion.

Name

First Internet Bank

Legal name

First Internet Bank of Indiana

Website

https://firstib.com

Company type

Public

Founded year

1999

Operating status

Operating

Headcount range

251–500 employees

Short description

First Internet Bank is a digital-first, FDIC-insured community bank founded in 1999, operating without physical branches to serve US consumers and small businesses nationwide through online and mobile channels. Its product suite spans consumer deposit and lending products, commercial banking, SBA lending, and fintech partnership (BaaS) offerings, with assets of approximately $5.6-6.1 billion.

Ownership category

akta.pro rank

Product category

Retail Banking

NAICS

Commercial Banking (52211), Depository Credit Intermediation (5221), Savings Institutions and Other Depository Credit Intermediation (522180)

SIC

State Commercial Banks (6022), Personal Credit Institutions (6141), Functions Related To Depository Banking, Nec (6099)

akta.pro primary industry

Digital Retail Banking (Online & Mobile) (FSABAAAF)

akta.pro secondary industries

Digital Banking & Neobank Platforms (BPAMAFAD), Embedded Lending & Credit (POS, Working Capital, Credit Lines) (FSAGALAD), Open Banking, Account Aggregation & Payment Initiation APIs (BPAMAFAJ), Embedded Deposit Accounts & Digital Wallet Infrastructure (FSAGALAE)

Keywords

• Online banking services
• Consumer banking accounts
• Small business lending
• Commercial banking services
• SBA loan programs

Headquarters

HQ city

Fishers

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Net Interest Income: Interest earned on loans and investment securities minus interest paid on deposits. Primary revenue driver for the bank holding company.
2. Transaction and Service Fees: Fees from account maintenance, wire transfers, ATM usage, overdraft services, and other banking transaction services
3. Credit Card Income: Interest income on credit card balances, annual fees, late fees, and interchange fees on Commercial Classic and Cashback credit cards

Pricing tiers

Go-to-market motion4 records

Distribution channels5 records

Marketing channels5 records

Core offering

First Internet Bank is a digital-first, FDIC-insured bank operating entirely online since 1999. It provides consumer banking products (checking, savings, CDs, auto and student loans, credit cards, HSAs) and business banking services (business checking, savings, CDs, SBA loans, commercial banking, dealer services, equipment leasing, fintech partnerships). The bank differentiates through real-time transaction processing, no physical branches, competitive interest rates, and AI-driven lending tools.

Product overview

First Internet Bank is a digital-first banking platform offering a comprehensive suite of consumer and business banking products. The platform operates on a unified digital banking infrastructure with products organized into Personal Banking (checking, savings, CDs, loans, credit cards) and Business Banking (checking, savings, CDs, commercial services, SBA loans, equipment leasing, fintech partnerships). Key differentiators include AI-powered lending tools (Parlay Finance LIS, Lumos predictive analytics), Zelle integration for instant payments, and the Balance Optimizer feature for automatic fund optimization. The bank serves both consumer and commercial customers nationwide through fully digital channels, with no physical branches.

Differentiator

Problem solved

Functional benefit

Products and services

• Personal Checking

Quantifiable outcome

• Earn 3.09% APY on Money Market Savings, 5x the national average of 0.57%
• +3 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

AI capability3 records

Feature3 records

Partnerships

Seven partnerships are on record, tiered minor, strategic and core.

• Indiana Bankers AssociationminorGTM or Marketing Partner · 4 May 2026Anne Sharkey, SVP and Chief Risk Officer, participates as panelist at IBA MEGA 2026 Conference focusing on elevating risk management practices and building partnerships between risk and business functions in community banking.
• NachaminorGTM or Marketing Partner · 8 April 2026First Internet Bank speaks at Nacha Smarter Faster Payments 2026 Conference on spotlight session 'A Collaborative Vision of Customer Experience for the Future' exploring how FIs and fintechs can strengthen customer experience in digital payments.
• Owners In Honor™strategicStrategic or Co-development Partner · 6 March 2026Collaboration to promote veteran business ownership through sponsorship of the Entrepreneurship Through Acquisition (ETA) program, including educational initiatives, Dallas veteran event, and new lending modules focused on acquisition finance supporting veteran economic mobility.
• JariscoreChannel Partner/ Reseller/ Distributor · 19 February 2026Jaris expanded partnership with Paysafe to offer Jaris Instant Payouts to tens of thousands of SMBs across Paysafe's U.S. merchant network. First Internet Bank provides banking services and credit products integrated with Paysafe's existing Jaris-powered business loan offerings.
• PaysafecoreChannel Partner/ Reseller/ Distributor · 19 February 2026Paysafe merchant network partnership enabling Jaris Instant Payouts for SMBs. First Internet Bank provides banking services and credit products integrated into Paysafe's payment ecosystem.
• Pool United, Inc.coreTechnology or Integration · 7 October 2025Partnership to launch Pool multi-user financial account with Visa debit card enabling consumers to add multiple users with role-based permissions. Pool raised $4.5M in venture capital and the product targets collaborative money management for shared households, community organizations, and small groups.
• Parlay FinancecoreTechnology or Integration · 17 April 2025Partnership to modernize SBA lending through implementation of Parlay's AI-native Loan Intelligence System (LIS) enabling faster loan decisions, increased application processing efficiency, and improved borrower experience.

Scale indicators7 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Ally Financial: Direct digital-first retail bank competitor explicitly named in First Internet Bank's GTM materials. Both offer online checking, savings, CDs, and consumer lending with no physical branches and competitive deposit rates, targeting the same nationwide digital-first consumer base.
• SoFi Technologies: Named direct competitor in First Internet Bank's GTM materials. SoFi is a larger digital-first platform combining banking, lending, and investing — competing head-to-head for the same digitally native consumer and small business customer segments with broader product breadth.
• Live Oak Bancorp: Public digital-focused bank with deep specialization in SBA lending and fintech-banking partnership infrastructure. Highly comparable business model to First Internet Bank's SBA + fintech partnership strategy, making it the closest pure-play peer for the bank's growth narrative.
• Axos Financial: Digital-first FDIC-insured bank offering consumer and business banking products online with no physical branches. Comparable model of nationwide digital distribution, competitive deposit pricing, and growing commercial / SBA presence, though at meaningfully larger scale.
• LendingClub: Digital-first bank holding company (post-bank charter acquisition) offering deposit products alongside consumer and SMB lending. Comparable in digital-only distribution and rate-competitive deposit gathering, with overlap in unsecured consumer credit and small-business finance.

Broad incumbents

• Discover Financial Services: Large direct-to-consumer bank and card issuer with branchless deposit gathering, credit cards, and personal loans. Overlaps with First Internet Bank in cashback card product, deposit account competition, and digital-only consumer acquisition motion.
• Synchrony Financial: Major digital-first consumer lender and deposit gatherer with branchless Synchrony Bank. Comparable in credit card income streams, deposit gathering via rate-led proposition, and digital-first consumer acquisition — though Synchrony's primary orientation is private-label and partner card financing.

Regional players

• Customers Bancorp: Commercial and digital-bank holding company operating Customers Bank with a digital-banking focus. Comparable commercial banking, embedded banking / BaaS offerings, and SBA-adjacent commercial credit — relevant peer for the bank's commercial and fintech partnership revenue streams.

Emerging players

• Green Dot Corporation: Digital banking and money movement platform serving underbanked consumers and fintech partners via Banking-as-a-Service infrastructure. Highly comparable to First Internet Bank's BaaS motion (Pool, Jaris, Parlay) and provides a benchmark for BaaS-led deposit and fee monetization.
• Stride Bank: Oklahoma-chartered bank heavily focused on Banking-as-a-Service and fintech partnerships. Comparable as a sponsor bank for embedded finance products and as a reference point for how a regional community bank can scale via BaaS revenue without branches.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks2 records

Key highlights7 records

Customer concentration

• Xx.com/firstib
• Facebookfacebook.com/firstinternetbank
• LinkedInlinkedin.com/company/first-internet-bank

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about First Internet Bank