Get to know SHAZAM

For more than five decades, SHAZAM has been guided by a simple but powerful belief: financial institutions are stronger when they work together. Our story is rooted in innovation, cooperation and a deep commitment to supporting community banks and credit unions across the country.

From creating the nation’s first shared electronic funds transfer (EFT) network to helping lay the foundation for modern debit technology, our journey reflects a long‑standing focus on delivering value and elevating experiences for our members, clients and the communities they serve.

Celebrating 50 years of empowering community finance

SHAZAM evolved from a regional EFT initiative into a nationwide, member‑owned payments and technology partner. As shown below, our innovative approach to debit cards, ATMs, digital banking, fintech collaboration and real‑time payments has consistently empowered community financial institutions to expand capabilities and prepare for a rapidly changing digital payments future.

1976

Bridging a growing gap

In the mid‑1970s, financial services were changing fast. Large banks were adopting new EFT technology, leaving many community institutions without access to these tools. To prevent that divide from widening, the Iowa Bankers Association united community banks to chart a better path forward — one that ensured electronic payments access while preserving local control.

In 1976, that collaboration led to the creation of the Iowa Transfer System, the organization that would eventually become SHAZAM. What began as a regional initiative quickly grew into the nation’s first shared EFT network, laying the groundwork for decades of innovation driven by cooperation.

1980s

Transforming ideas into everyday impact

Electronic banking evolved quickly during the 1980s, and SHAZAM helped turn promising ideas into everyday conveniences for consumers. Beginning with expanded ATM access, we enabled community financial institutions to broaden capabilities and stay competitive without losing their personal touch.

As electronic payments entered daily life, SHAZAM continued pushing boundaries. In 1981, we launched the world’s first integrated point‑of‑sale pilot, followed by key innovations such as pay‑at‑the‑pump technology in 1986 and the nation’s first electronic benefit transfer pilot integrated with a public‑sector system in 1989. These milestones made electronic payments familiar, trusted and widely used.

1990s

Building the modern debit experience

By the 1990s, electronic payments were accelerating, and SHAZAM helped turn that momentum into meaningful progress for banks and credit unions. In 1993, we introduced what would become the modern debit card, giving community financial institutions a powerful tool to meet rising consumer expectations.

As usage increased, affordability became a critical factor. In 1997, we launched the Privileged Status™ program, a surcharge‑free ATM network that delivered value to both cardholders and institutions. When a national card association raised participation fees in the late 1990s, SHAZAM responded by forming ITS Bank and becoming a principal member, saving participants millions annually and strengthening the debit experience consumers rely on today.

2000s

Delivering new digital capabilities

The 2000s brought rapid technological change, new regulations and shifting consumer behavior. SHAZAM expanded its role by offering digital solutions, core processing, fraud prevention, marketing support and continued advocacy for community financial institutions.

In 2000, ITS Bank formally established SHAZAM as a nationally accepted payments network, generating substantial savings for participants. The decade also introduced major innovation milestones — including our first mobile ATM pilot in 2001 and the implementation of FICO® Falcon® Fraud Manager in 2006 to strengthen fraud prevention. This era marked SHAZAM’s evolution from an EFT network into a comprehensive technology partner.

2010s

Expanding into mobile and fintech innovation

The 2010s ushered in new expectations for mobility, security and digital banking. SHAZAM expanded its capabilities and moved into additional technology categories to support community institutions.

In 2010, we acquired Cardinal Software, Inc., adding core banking solutions to our portfolio. The following year, SHAZAM played a key role in advocating for the U.S. transition to debit chip cards, helping upgrade security standards. In 2012, we launched our first card‑control mobile app — the foundation of today’s Brella®. By 2016, we began partnering with fintechs, extending debit program and gateway access and connecting traditional institutions to emerging technologies.

2020s

Accelerating real‑time transformation

The 2020s have centered on real‑time payments, digital infrastructure and strategic expansion. In 2021, SHAZAM acquired FileX — now DocuCommand® — adding digital information management to our offerings, while also participating in the national pilot that shaped FedNow®.

We broadened our core banking reach with the acquisition of Nicola Banking Systems in 2022. By 2023, three SHAZAM core clients became early adopters of FedNow®, demonstrating readiness for instant payments. In 2025, we launched three new brands — Peregrine™ processing solutions, DigiHive™ digital banking, and KinetiCore™ banking solutions — reflecting our leadership in real‑time and digital transformation.

2026

Investing in the future of financial services

Today, SHAZAM is headquartered in Iowa with a nationwide presence. Our 650 employees support clients across 49 states and Washington, D.C., operating within a member‑owned, nonprofit model that prioritizes participants over shareholders. We continue delivering secure, forward-thinking technology that empowers community financial institutions to lend, serve, employ and grow.

Across the country, we’re investing in network expansion, operational flexibility and next‑generation digital capabilities. This ongoing commitment to research, development and innovation ensures that community banks and credit unions have the tools they need to compete and meet future expectations.

Frequently asked questions

What is SHAZAM known for?

SHAZAM is known for establishing the nation’s first shared EFT network to enable community banks and credit unions to access electronic payments technology through collaboration. Today, we’re recognized for delivering a broad suite of financial products and services backed by trusted, relationship-driven support.

When was SHAZAM founded?

SHAZAM was founded in 1976 out of a collaborative effort led by the Iowa Bankers Association, under the leadership of Dale Dooley who helped guide its formation and growth.

Why was SHAZAM created?

SHAZAM was created to ensure community financial institutions had fair access to emerging EFT and ATM technology at a time when larger banks dominated the space.

How did SHAZAM influence debit card technology?

By building the nation’s first shared EFT infrastructure, SHAZAM helped accelerate the adoption of ATMs and debit card payments, contributing to the foundation of modern debit card transactions.

Is SHAZAM still focused on community banks and credit unions?

Yes. Strengthening community financial institutions remains SHAZAM’s mission today, just as it was at the beginning.

Looking ahead to the next 50 years

Our history is defined by collaboration, innovation and a steadfast belief in the strength of community finance. Today, that mission continues as we expand digital capabilities, modernize payments and empower institutions to thrive in an ever‑evolving financial landscape.

Ready to build the future together?