IND® for Banks
With IND, banks can
- access inexpensive, long-term, floating-rate deposit funding through customized pricing contracts that can help banks minimize interest rate risk;
- generally, raise as little as $25 million to as much as multiple billions of dollars in cost-effective, uncollateralized, floating-rate funding; and
- access diverse, stable funding – because IND deposits originate from millions of individual investors, the aggregate balances display stability, much like balances in your bank’s aggregate transaction accounts.
Typically, 95% of IND deposits will be classified as "MMDA Deposits" on the bank's balance sheet and Call Report and will NOT be subject to reserves.
Banks account for IND balances on an "omnibus" level. The brokerage firms supplying the funding keep all individual client records.
Implementation is quick and easy, and banks incur no set-up costs. The contract price is the bank's all-in cost of funds; there are no additional fees.
Read an IND case study to learn more about how Network members are successfully using IND.
For more information, please contact us.