WARSAW, N.Y., Jan. 25, 2022 /PRNewswire/ -- Five
Star Bank (the "Bank"), a
subsidiary of Financial Institutions, Inc. (NASDAQ:FISI), is
pleased to announce a new partnership with NYDIG, a leading bitcoin
company. As a premier provider of consumer and commercial lending
services across the Southern Tier, Finger Lakes, and Western
regions of New York, the Bank will
become one of the first financial institutions in the U.S. to
enable its banking clients to securely buy, sell and hold bitcoin,
powered by NYDIG.
The Bank will enable customers to transact bitcoin securely
through its banking mobile app and online banking platform, and
will help them overcome barriers to adoption such as crypto wallets
and key management, which are often traditionally done through
unregulated entities. Five Star Bank
accountholders are anticipated to be eligible to transact bitcoin
seamlessly and securely by the end of the second quarter.
"We are thrilled to introduce a new—and trusted—digital banking
option for customers to effortlessly acquire, sell, hold, and
manage bitcoin alongside their traditional financial assets," said
Martin K. Birmingham, CEO of Five
Star Bank. "Thanks to NYDIG, we are creating a safe, efficient, and
more user-friendly way for our customers to manage their digital
transactions. Customer experience continues to be at the forefront
of our focus at Five Star Bank, and we're proud to bring forth a
crypto currency investment solution that will broaden access to
this emerging portfolio option for consumers within our geographic
footprint and, frankly, across the country."
NYDIG's Bitcoin platform meets the industry's highest
regulatory, audit, and governance standards, enabling
financial institutions, like Five Star Bank, to maintain strict
compliance programs, while enhancing the digital banking experience
for customers. NYDIG's full-stack Bitcoin platform will create a
secure and compliant environment for account holders to manage
their bitcoin investments and check their balances alongside their
traditional financial assets which is particularly innovative not
only for the financial institution, but the banking industry.
"We knew it was in the best interest of our customers to build
upon our digital service menu in a way that better supports their
interests, including an investment appetite for cryptocurrency.
This is an area of the market that we have all seen grow
exponentially over the last several years," said Sean Willett, chief administrative officer, Five
Star Bank. "Some early investors have jumped into crypto headfirst,
while most consumers have expressed an interest in a more secure
and reliable way to transact bitcoin. We're proud to be a part of
that solution and view our partnership with NYDIG to be just one of
many upcoming technology and banking-as-a-service innovations that
will drive Five Star Bank forward."
According to a 2021 survey commissioned by NYDIG, 81% of
respondents said they'd be interested in purchasing bitcoin from
their bank if the service was available. In that same survey, 71%
of those responding who already owned the digital asset said they
would be willing to switch their primary bank to one that offered
Bitcoin-related products and services.
By integrating bitcoin along with the Bank's suite of digital
banking products, Five Star Bank hopes to not only meet current
customer needs but reach new customers, including expanding outside
the New York footprint.
Five Star Bank plans to begin
roll out of Bitcoin services starting with an initial phase-in
during the second quarter of this year. More details on timing and
rollout will be made available in the near future.
About NYDIG
NYDIG is a bitcoin company powering a more inclusive economic
system. Delivering technology and financial services to banks,
fintechs, insurers, and corporations, its full-stack bitcoin
platform is built to the highest security, regulatory, and
operational standards. NYDIG is the gateway to a new era of
financial products that make bitcoin more accessible for all. Learn
more at nydig.com, or connect on LinkedIn and Twitter.
About Five Star Bank
Five Star Bank is a $5 billion community bank offering a wide range
of consumer and commercial banking and lending services to
individuals, municipalities, and businesses through a network of
more than 45 locations. Five Star
Bank has a dedicated team of approximately 560 employees who
are committed to giving back through a variety of non-profit
organizations and neighborhood charities.
Five Star Bank offers a broad
range of insurance services to personal and business clients
through SDN Insurance Agency, LLC. Additionally, the Bank offers
customized investment management, investment consulting, and
retirement plan services to individuals, businesses, institutions,
foundations and retirement plans through Courier Capital, LLC, HNP
Capital, LLC and Five Star Investment Services. Additional
Five Star Bank information is available
at five-starbank.com and on Twitter, Instagram and
Facebook.
Five Star Bank, SDN Insurance
Agency, LLC, Courier Capital, LLC and HNP Capital, LLC are
subsidiaries of Financial Institutions, Inc. (NASDAQ:FISI).
Financial Institutions, Inc. stock is listed on the NASDAQ Global
Select Market. Additional information is available
at fiiwarsaw.com.
For additional information contact:
Shelly J. Doran
(585) 627-1362
sjdoran@five-starbank.com
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SOURCE Five Star Bank