First Internet Bancorp (INBK): Business Model Canvas

Key Partnerships

First Internet Bancorp (INBK) has established key partnerships that are crucial to its business model. These partnerships help the company to expand its offerings, reach new markets, and enhance its overall value proposition to customers. Some of the key partnerships include:

• Collaboration with fintech companies: First Internet Bancorp has formed partnerships with various fintech companies to leverage their technology solutions and innovation. These collaborations help the company to enhance its digital banking capabilities, improve customer experience, and stay competitive in the rapidly evolving financial services industry.
• Brokerage firms for investment services: By partnering with brokerage firms, First Internet Bancorp is able to offer a wide range of investment services to its customers. These partnerships enable the company to provide comprehensive investment solutions, including stock trading, mutual funds, and retirement accounts, thereby meeting the diverse financial needs of its clients.
• Mortgage origination networks: First Internet Bancorp has established partnerships with mortgage origination networks to streamline the mortgage application and approval process. These partnerships help the company to serve a larger customer base, provide competitive mortgage rates, and ensure a smooth and efficient mortgage lending experience for homebuyers.

Key Activities

Online banking services: First Internet Bancorp provides online banking services to its customers, allowing them to manage their accounts, transfer funds, pay bills, and access financial information conveniently from anywhere.

Loan processing: The company offers loan processing services to individuals and businesses, helping them secure financing for various needs such as home mortgages, auto loans, and business loans. This includes reviewing applications, conducting credit checks, and facilitating the approval process.

Customer service management: First Internet Bancorp prioritizes excellent customer service, offering support to clients through various communication channels such as phone, email, and live chat. The company ensures timely resolution of inquiries, complaints, and technical issues to enhance customer satisfaction.

Investment advisory: In addition to banking services, First Internet Bancorp provides investment advisory services to clients seeking assistance with managing and growing their investment portfolios. The company's financial experts offer tailored advice, investment recommendations, and portfolio reviews to help clients achieve their financial goals.

Key Resources

First Internet Bancorp (INBK) has a number of key resources that help it maintain a competitive edge in the digital banking sector.

Proprietary online banking platform: One of the most valuable resources for INBK is its proprietary online banking platform. This platform allows customers to access their accounts, transfer funds, make payments, and more, all from the convenience of their computer or mobile device. The platform is user-friendly and constantly updated to ensure a seamless banking experience for customers.

Financial and investment expertise: INBK employs a team of financial experts who provide customers with personalized financial advice and investment options. This expertise helps attract customers who are looking for more than just basic banking services and sets INBK apart from its competitors.

Customer data analytics: INBK utilizes customer data analytics to gain insights into customer behavior and preferences. This helps the company tailor its services and marketing efforts to better meet the needs of its customers and attract new ones.

Secure IT infrastructure: With cyber security being a top concern for digital banks, INBK invests in a secure IT infrastructure to protect customer data and transactions. This includes encryption protocols, firewalls, and other security measures to ensure that customer information remains safe and secure.

Value Propositions

Convenient 24/7 online banking: At First Internet Bancorp, we understand that our customers lead busy lives and need access to their finances at any time. That's why we offer a user-friendly online banking platform that allows customers to manage their accounts, make transactions, and access financial information 24 hours a day, 7 days a week. With our online banking services, customers can enjoy the convenience of banking from anywhere, at any time.

Competitive interest rates on deposits: We strive to provide our customers with the best possible value for their money. That's why we offer competitive interest rates on deposits, allowing customers to earn more on their savings and investments. Whether customers are looking to save for the future or grow their wealth, our attractive interest rates can help them reach their financial goals faster.

Diverse portfolio of financial products: At First Internet Bancorp, we understand that each customer has unique financial needs and goals. That's why we offer a diverse portfolio of financial products, including checking accounts, savings accounts, CDs, loans, and investment options. Whether customers are looking for a basic checking account or a comprehensive investment strategy, we have the products and services to meet their needs.

Personalized customer service online: Despite being an online bank, we prioritize personalized customer service in every interaction. Our dedicated team of customer service representatives is available to assist customers with their banking needs via phone, email, or online chat. Whether customers have a question about their account or need assistance with a transaction, our friendly and knowledgeable team is here to help.

Customer Relationships

First Internet Bancorp (INBK) focuses on developing strong customer relationships through a variety of channels:

Personalized Online Assistance: INBK leverages technology to provide personalized online assistance to its customers. This includes tools such as chatbots and virtual assistants that can help customers with their queries and provide real-time support.

Automated Online Services: INBK offers a range of automated online services to make banking convenient for its customers. This includes features such as online account opening, bill payment, and fund transfer, allowing customers to carry out transactions without the need for human intervention.

Customer Feedback and Support System: INBK values customer feedback and actively seeks input from its customers to improve its services. The bank has a robust customer support system in place, including helplines, email support, and online forums, where customers can voice their concerns or provide feedback.

Loyalty Programs: INBK also provides loyalty programs to reward its customers for their continued support. These programs may include rewards points, cashback offers, or discounts on certain products or services, encouraging customers to stay loyal to the bank.

• Personalized online assistance
• Automated online services
• Customer feedback and support system
• Loyalty programs

Channels

The channels through which First Internet Bancorp (INBK) reaches its customers play a crucial role in its business model. By utilizing various avenues, the company is able to effectively engage with existing customers and attract new ones. The main channels used by First Internet Bancorp include:

• Company’s website: The company’s website serves as a primary channel for customers to access information about the bank, its products and services, and also to carry out transactions. With a user-friendly interface and secure online banking capabilities, the website is a key channel for customer engagement.
• Mobile banking application: With the rise of smartphone usage, First Internet Bancorp has developed a mobile banking application that allows customers to access their accounts, make transactions, and manage their finances on-the-go. The mobile app provides convenience and accessibility to customers, enhancing their overall banking experience.
• Email newsletters: First Internet Bancorp utilizes email newsletters to keep customers informed about new products, promotions, and other relevant information. By sending out regular newsletters, the company is able to engage with customers and drive interest in its offerings.
• Social media platforms: Leveraging social media platforms such as Facebook, Twitter, and LinkedIn, First Internet Bancorp is able to connect with its audience on a more personal level. Through social media, the company shares updates, engages in conversations with customers, and builds brand awareness.

Customer Segments

The customer segments of First Internet Bancorp (INBK) are diverse and cater to various segments of the market. These segments include:

• Individual retail customers: INBK serves individual retail customers who are looking for personal banking services such as checking and savings accounts, loans, mortgages, and investment products. These customers typically have lower transaction volumes and account balances compared to other segments.
• Small to medium enterprises (SMEs): INBK provides banking and financial services to small and medium-sized businesses. These customers may require business checking and savings accounts, business loans, cash management solutions, and other financial products tailored to meet the needs of their business.
• Real estate investors: INBK offers specialized banking services to real estate investors who are looking to finance property acquisitions, manage rental properties, or secure construction loans. These customers may have unique banking needs related to real estate investments and may require specialized financing options.
• High net worth individuals: INBK caters to high net worth individuals who require personalized banking and wealth management services. These customers may have substantial assets and investment portfolios, requiring customized solutions to help them manage and grow their wealth.

By catering to a diverse range of customer segments, INBK is able to provide a wide range of banking and financial products to meet the unique needs of each segment.

Cost Structure

The cost structure of First Internet Bancorp (INBK) consists of various components that are essential for the operation and growth of the business. Here are some key cost elements:

• IT maintenance and development costs: INBK invests heavily in IT infrastructure to ensure the smooth operation of its online banking platform. This includes costs related to maintaining and upgrading servers, software, security systems, and other technology infrastructure.
• Marketing and advertising expenses: To attract new customers and promote its services, INBK incurs costs related to marketing campaigns, advertising, social media promotions, and other marketing activities. These expenses are crucial for increasing brand awareness and acquiring new customers.
• Staff salaries: INBK has a team of employees responsible for various functions such as customer service, operations, technology, compliance, and marketing. Staff salaries make up a significant portion of the company's cost structure, reflecting the importance of hiring and retaining top talent in the industry.
• Regulatory compliance costs: As a financial institution, INBK is subject to strict regulatory requirements to ensure the safety and security of its customers' funds. Compliance costs include expenses related to maintaining compliance with federal and state regulations, conducting audits, training employees on compliance matters, and implementing necessary controls and procedures.

Revenue Streams

First Internet Bancorp generates revenue from various sources related to its banking and investment services. These revenue streams include:

• Interest from loans and mortgages: One of the primary sources of revenue for First Internet Bancorp is the interest earned on loans and mortgages provided to customers. This revenue stream is directly influenced by the interest rates set by the Federal Reserve and market conditions.
• Fees from banking services: First Internet Bancorp charges fees for various banking services such as account maintenance, overdraft protection, and wire transfers. These fees contribute to the company's overall revenue and help cover operational costs.
• Investment service charges: The company also generates revenue from investment services provided to clients. This includes management fees for investment portfolios, advisory services, and other investment-related transactions.
• Commission on brokerage services: First Internet Bancorp earns commissions on brokerage services offered to clients who trade stocks, bonds, and other securities. These commissions are typically a percentage of the total transaction value and can vary depending on the size and complexity of the trade.

These revenue streams collectively contribute to the financial stability and growth of First Internet Bancorp, helping the company provide quality banking and investment services to its customers.