Reaching Socially Responsible Investors

Some of the best sources of deposits for Community Development Financial Institutions (CDFIs) – banks, minority-owned banks, and other financial institutions whose primary missions are to lend and provide services in distressed areas – are socially responsible investors who invest in CDFIs because of their commitment to a social investment agenda.

Even Promontory Network members that do not carry the CDFI designation can use CDARS^® to attract socially responsible investors – because the full amount of funds placed through CDARS^® Reciprocal^SM transactions stays local and can be used to fund loans that strengthen their own communities – an important point for many bank customers.

Socially Responsible Investors

• Large corporations
• Non-profits
• Small business owners
• Public funds
• Wealthy individuals

What’s Important to Socially Responsible Investors

• Maintaining high fiduciary standards
• Protection of FDIC insurance or some other assurance
• Keeping funds in their communities

Advantages of CDARS^® for Socially Responsible Investors

• Peace of Mind: Compliance with investment mandates through access to multi-million-dollar FDIC insurance (limits apply).
• Time-Saving Conveniences: The ease of working through a single relationship; not having to track collateral on an ongoing basis or to directly manage multiple bank relationships.
• Ease of Financial Reporting: Avoid having uninsured deposits to footnote in financial statements. CDARS satisfies FDIC requirements for pass-through insurance coverage.
• Helping Underserved Communities Grow: Promontory Network members that are also CDFIs often find CDARS a powerful tool for attracting large deposits from socially responsible investors, including banks looking for Community Reinvestment Act (CRA) credit.

• Member Benefits
  • For Banks
  • For Broker-Dealers
• Case Studies and Testimonials
• Endorsements & Alliances