Banks can use IND to access cost-effective, long-term (e.g., three to five years), wholesale funding. Through IND, banks can obtain floating rate funding for amounts from $25 million to multiple billions of dollars.

IND funding comes from cash held in millions of brokerage accounts across the nation. Therefore, the funding is both geographically diverse and stable. In fact, these balances typically act like core deposits - the "stickiness" of which has been proven by the experience of numerous banks that have participated in similar programs over the last 20 years. Banks can think of this type of funding as similar to issuing a floating rate, multi-year CD.

The IND service has been designed with careful attention to regulatory compliance. The integrity of IND's design is of great importance to Promontory, which greatly values its reputation for compliance and the trust placed in it by its customers.

Approximately 95% of IND deposits will be classified as savings deposits on a bank's Call Report - and savings deposits are not subject to reserves.

The administrative/accounting burden associated with IND is minimal. Banks open "omnibus" accounts only. Individual account records are maintained by the broker-dealer.

Banks utilizing the service settle on a daily basis, but do not pay settlement fees; the total cost of funds is the rate agreed upon with Promontory. The movement of funds from broker-dealers to banks is settled through IND's settlement bank - The Bank of New York (BNY).

To learn more about IND, please contact Promontory's Treasury Desk at 1.866.776.6426 or treasurydesk@promnetwork.com. Also, we invite you to learn more about the experienced team that backs this service. Read more about Promontory's Management Team as well as our Founders and Board Members.