ICS® One-Way Sell®
What is ICS One-Way Sell?
Using ICS®, the Insured Cash Sweep® service, Promontory Network members can offer customers access to multi-million-dollar FDIC insurance and a return on funds placed in demand deposit accounts, money market deposit accounts, or both. ICS One-Way Sell enables participating Promontory Network members to sell their excess Insured Cash Sweep deposits to banks that desire funding. In this scenario, the funds are taken off balance sheet (sold to banks that desire funding) and Network members can earn fee income in place of matching deposits.
Why would your bank want to use ICS One-Way Sell?
By taking funds off balance sheet, ICS One-Way Sell can help banks:
- Attract new customer relationships and continue building franchise value during periods of high liquidity – One-Way Sell transactions do not create funding or on-balance-sheet liabilities for banks.
- Increase market share by encouraging existing safety-conscious depositors to consolidate their investments with banks.
- Earn fee income and increase profitability, as well as return-on-assets and return-on-equity ratios.
- Enjoy flexibility knowing that if the bank’s liquidity position changes, it can switch back to using ICS® ReciprocalSM and receive matching deposits, instead of fee income, for its placements.
How does ICS One-Way Sell work?
When your bank places a customer’s funds through ICS One-Way Sell, it can receive fee income. (Note that your bank sells just the funding, not the underlying relationship.) As with ICS Reciprocal, customer funds are placed with other Network banks so that customers can access FDIC insurance from many banks while working directly with just yours.
What else do I need to know?
Customers like ICS because it lets them work directly with just one bank for security, convenience, and other benefits. As with all ICS transactions, your bank retains complete ownership of the relationship, and your customer’s confidential information remains protected.
If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor’s funds through ICS, or a particular ICS transaction, satisfies those restrictions.
Placement of customer funds through the ICS service is subject to the terms, conditions, and disclosures set forth in the agreements, including the ICS Deposit Placement Agreement, that a participating institution's customer enters into with that institution. Limits and customer eligibility criteria apply. Program withdrawals are limited to six per month when using the ICS savings option. ICS, Insured Cash Sweep, and One-Way Sell are registered service marks of Promontory Interfinancial Network, LLC.