IND for Brokerage Firms
Insured Network Deposits®, or IND®, is the #1 FDIC-insured deposit sweep service. The largest service in the industry (sized for millions of accounts and transactions), IND is a proven service, currently handling billions of dollars in daily balances.
IND leverages the deep expertise of Promontory Interfinancial Network's senior management team, which includes individuals who have designed and implemented similar programs for nationally recognized firms. The service offers capacity and flexibility thanks to Promontory Interfinancial Network's extensive relationships with Promontory Network member banks.
Why Top Brokerage Firms Choose IND
Known for its technology leadership and high-touch customer service, IND helps brokerage firms to effectively protect customer funds while generating revenue.
Using IND, brokerage firms can offer their customers a superior investment alternative—access to multi-million-dollar FDIC insurance via a multi-bank deposit sweep product. Brokerage firms can
- Significantly increase profit margins over those earned from short-term investment accounts, like money market mutual funds
- Control the margin earned from the service
- Replace existing money market mutual funds sweep accounts and potentially increase margins
- Tier the rate offered to various customer segments, if desired
- Use IND balances to fund affiliate banks, if desired/applicable—and switch back and forth between placing funds with affiliated and unaffiliated banks based on the affiliated bank's liquidity needs
The Basics of How IND Works For Brokerage Firms
When a brokerage firm chooses IND, the IND team works closely with the brokerage firm to create and manage a customized multi-bank program, sized to meet the brokerage firm’s needs with the ability to expand over time. With IND
- The brokerage firm retains full control of its customer relationships
- Fund movements are approved by the brokerage firm (with BNY Mellon as settlement agent)
- Daily reconciliation occurs between the brokerage firm and program banks
- The brokerage firm has access to transaction records
- System-wide implementation is possible in as little as 90 days thanks to detailed project plans and proactive management of the process during all phases of implementation
- The brokerage firm has ongoing access to a dedicated IND support team
Read about a brokerage firm's experience with IND. To learn more, please get in touch with the IND team today.
Discover How IND Pricing, Rate Tiering, and Bank Placement Options Foster Flexibility—Get Use Cases & Net Yield Comparison Chart