Chesapeake Bank, renowned for its Flexent program that has focused on accounts receivable financing since 1995, has unveiled a groundbreaking real-time payments system specifically designed for the trucking sector. DJ Seeterlin, Chief Innovation and Strategy Officer, and Kevin Wood, Managing Director of Flexent at Chesapeake Bank, recently discussed this significant development with Steve Darling from Proactive.
In 2023, Chesapeake Bank recognized the critical need for quicker payment solutions for truck drivers, who often face immediate expenses such as fuel and repairs. To address this, the bank acquired another company to develop a real-time payments system. This innovative system allows truck drivers to receive funds instantly upon load delivery and paperwork submission, bypassing slower methods like ACH and costly wire transfers. The initiative has already seen strong adoption, with 93% of truck drivers preferring instant payments.
Chesapeake Bank has been a pioneer in adopting real-time payment technologies, being among the first 25 banks in the US to implement them in 2020. Their early involvement and proactive approach in the industry have enabled them to swiftly deploy these solutions, demonstrating their commitment to innovation and customer satisfaction.
The new service is expected to significantly benefit the trucking sector by providing faster and more efficient payment options. Additionally, it is poised to enhance Chesapeake Bank's traditional receivables financing business, while also generating additional revenue through ancillary products. This initiative underscores Chesapeake Bank's dedication to meeting the evolving needs of its clients and advancing the financial services industry.
The company emphasized the importance of this development, highlighting how the real-time payments system not only supports truck drivers in their day-to-day operations but also strengthens Chesapeake Bank's position as a leader in financial innovation. As the trucking industry continues to grow and evolve, Chesapeake Bank remains committed to providing cutting-edge solutions that drive success for their clients.
