Build Multi-Million-Dollar Relationships
Banks and brokerage firms use Promontory Interfinancial Network's services to attract and retain valuable relationships and better serve their customers—all while generating cross-selling opportunities and enhancing their profitability.
Attract more customers, with or without keeping customer funds on balance sheet.
Using the ICS® and CDARS® services, banks can offer their customers access to multi-million-dollar FDIC insurance and a return on funds placed into demand deposit accounts (using the ICS demand option), money market deposit accounts (using the ICS savings option), and/or CDs (using CDARS). ICS and CDARS help provide balance sheet flexibility as banks can choose to keep the full amount of customer funds on balance sheet and replace higher-cost funding, or sell the excess and earn fee income.
Using the Promnet RepoSM service, banks can offer their customers the ability to enter into repurchase agreement transactions, which offer the safety of having funds backed by U.S. Treasuries (to 101%-102%) or by Agency MBS (to 103%), returns, and daily liquidity. Neither the cash nor securities stay on balance sheet, so banks of all sizes can enjoy more balance sheet flexibility—while at the same time also earning fee income and offering an attractive cash management solution for large-dollar customers. For the largest banks, where certain deposits may be negatively impacted by Liquidity Coverage Ratio calculations, the ability to keep those customers without burdening the balance sheet can make the Promnet Repo service a particularly valuable customer retention tool.
Using the Yankee Sweep® service, banks can offer their customers the opportunity for returns and greater geographic diversification. Although uninsured, funds are deposited with U.S.-chartered branches of foreign banks—called "Yankee Banks"—that are among the largest banks in the world, are subject to Federal Reserve Board oversight, and are rated by Standard & Poor's, Moody's, or Fitch.
Expand relationships with large-dollar depositors and borrowers.
ICS and CDARS appeal to safety-conscious customers of all types. Plus, ICS and CDARS deposits tend to be large and “sticky,” which helps to lower customer acquisition costs and provide more opportunities for cross-selling. Promnet Repo and Yankee Sweep appeal to sophisticated customers who appreciate a wider array of cash management services.
With Bank Assetpoint® and Residential Mortgage NetworkSM, banks can enhance and grow borrower relationships. Banks can pursue opportunities that might otherwise be beyond internal lending limits by creating and marketing loan participations to a nationwide network of banks and other loan buyers. Banks can post loans for sale to other banks and say "yes" to more borrowers, earn origination and servicing fee income, and manage potential portfolio concentration. In addition, banks can use Bank Assetpoint to protect customer relationships by referring loan requests to noncompeting market participants who specialize in areas such as marine loans, certain CRE or SBA loans, manufactured home loans, or equipment leasing.
Differentiate themselves from other brokerage firms by offering customers access to insured deposit services.
Using the ICS and CDARS services, brokerage firms can grow market share by offering safety-conscious investors access to multi-million-dollar FDIC insurance and a return on funds placed into demand deposit accounts (using the ICS demand option), money market deposit accounts (using the ICS savings option) and/or CDs (using CDARS). The services also help brokerage firms to control their margins and earn higher total commissions than with Treasuries.
Attract new customers and continue to increase assets under management.
In addition to expanding customer offerings with ICS and CDARS, brokerage firms can use IND, or Insured Network Deposits; Yankee Sweep; and Promnet Repo to provide customers with a wider range of choices that can help balance each customer's need for returns, risk management, and liquidity.
With the IND service, brokerage firms can replace existing money market mutual fund sweep accounts and increase margins while their customers enjoy access to a multi-bank, FDIC-insured deposit sweep product.
With the Yankee Sweep service, brokerage firms can offer their customers the opportunity for returns and greater geographic diversification. Although uninsured, funds are deposited with U.S.-chartered branches of foreign banks-called "Yankee Banks" -that are among the largest banks in the world, are subject to Federal Reserve Board oversight, and are rated by Standard & Poor's, Moody's, and Fitch.
Using the Promnet Repo service, brokerage firms can offer their customers the ability to enter into repurchase agreement transaction, which offers the safety of having their large cash balances backed by U.S. Treasuries (to 101%-102%) or by Agency MBS (to 103%), returns, and daily liquidity. Learn more about how Promontory Interfinancial Network's suite of services can help broker-dealers grow profitable relationships.
A depositor is responsible for excluding from eligibility to receive its funds through CDARS or ICS any FDIC-insured depository institution at which it has other deposits in the same insurable capacity.
Use of the CDARS and ICS services is subject to the terms, conditions, and disclosures set forth in the applicable program agreements, including the applicable Participating Institution Agreement and Deposit Placement Agreement. Limits apply, and customer eligibility criteria may apply. ICS program withdrawals are limited to six per month when using the savings option.
ICS, Insured Cash Sweep, CDARS, Certificate of Deposit Account Registry Service, IND, Insured Network Deposits, and Yankee Sweep are registered service marks of Promontory lnterfinancial Network, LLC.
The Promnet Repo service is provided by Assetpoint Financial, LLC, a wholly owned subsidiary of Promontory Interfinancial Network, LLC, and a member of FINRA and SlPC. Use of the Promnet Repo service is subject to the terms, conditions, and disclosures set forth in the applicable agreements, including the Promnet Repo Service Agreement. Assetpoint Financial, LLC does not purchase or sell any securities in connection with repurchase agreement transactions effected using the Promnet Repo service. Funds invested in repurchase agreement transactions are not FDIC insured.