Cultivate Large-Dollar Relationships
Your bank can use Promontory Interfinancial Network's services—ICS®, CDARS®, Promnet Repo®, Yankee Sweep®, and Bank Assetpoint®—to attract high-value relationships and better serve existing customers, all while generating cross-selling opportunities and enhancing profitability.
ADD HIGH-VALUE CUSTOMERS, WITH OR WITHOUT ADDING DEPOSITS TO YOUR BANK’S BALANCE SHEET
With the ICS, or Insured Cash Sweep®, and CDARS services, your institution can provide access to multi-million-dollar FDIC insurance on funds placed into demand deposit accounts (with ICS), money market deposit accounts (with ICS), and CDs (with CDARS) at higher levels than a bank of any size can offer on its own. It’s a benefit that resonates with large-dollar, safety-conscious depositors who want to balance safety and convenience with returns and the elimination of ongoing collateralization burdens.
Institutions that offer Insured Cash Sweep and CDARS are members of the Promontory Network. When your bank places a customer’s deposit using ICS or CDARS, that deposit is divided into amounts under the standard FDIC insurance maximum of $250,000 and placed in deposit accounts—in demand deposit accounts, money market deposit accounts, or both with ICS, or in CDs with CDARS—at other Promontory Network banks. Your bank can exchange funds with Network banks on a dollar-for-dollar basis and keep the full amount of customer deposits on balance sheet or sell the deposits (but keep the relationship) and earn fee income. Either way, by working directly with just your institution, the customer can access FDIC coverage from many. And the customer enjoys the convenience of working with and receiving communications and statements from just your institution—a bank they know and trust.
Using the Promnet Repo® service, your bank can offer customers a convenient way to enter into repurchase agreement transactions that offer returns, daily liquidity, and the safety of having funds backed by U.S. Treasuries (to 101%-102%) or by Agency MBS (to 103%). Neither the cash nor securities stay on balance sheet, so banks of all sizes can use Promnet Repo to offer repurchase agreements without upsetting their balance sheets and to earn fee income at the same time. For larger banks, especially those where certain deposits may be negatively impacted by Liquidity Coverage Ratio calculations, the ability to preserve the customer relationship without burdening the balance sheet can make Promnet Repo a particularly valuable tool.
With the Yankee Sweep® service, your bank can offer customers the opportunity for returns and greater geographic diversification. Although uninsured, funds are deposited with U.S.-chartered branches of foreign banks (sometimes 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 EXISTING RELATIONSHIPS WITH LARGE-DOLLAR DEPOSITORS AND BORROWERS
In addition to helping to attract new customers, Promontory Interfinancial Network’s services can help your bank to protect its existing relationships and to acquire a greater portion of its most valued customers’ business.
For example, by enabling your bank to provide FDIC insurance eligibility beyond $250,000, the use of ICS and CDARS can encourage safety-conscious customers to consolidate accounts they may have at other institutions with your bank. And, since ICS and CDARS deposits are typically large and “sticky,” the services provide a strong foundation from which to nurture customer relationships and to cross-sell services. Additionally, both services enable participating financial institutions to accept larger deposits than they might deem desirable by providing them with the ability to take those funds off balance sheet so that they can keep an existing customer happy while reducing the potential for concentration issues.
For your bank’s sophisticated customers who seek an even wider array of large-dollar cash management services, Promnet Repo and Yankee Sweep offer additional ways to capture a bigger share-of-wallet.
Your bank can use Bank Assetpoint® to grow existing borrower relationships. For example, it can pursue opportunities that might otherwise be beyond internal lending limits by using the service to help market loan participations to a nationwide network of banks and other loan buyers (institutions that your bank approves). In addition, your bank can use Bank Assetpoint to protect customer relationships by referring loan requests in specialty areas that it cannot fulfill to noncompeting market participants who specialize in those areas—areas such as marine loans, certain CRE or SBA loans, manufactured home loans, or equipment leasing.
OFFER YOUR BANK’S TOP CUSTOMERS AND PROSPECTS MORE
Find out how your peers have benefited from adding the services to their suite of offerings.
Use of the ICS and CDARS services is subject to the terms, conditions, and disclosures set forth in the applicable program agreements, including the CDARS-ICS Participating Institution Agreement and applicable Deposit Placement Agreement. Limits apply, and customer eligibility criteria may apply. ICS program withdrawals are limited to six per month when using the ICS savings option.
Use of the Bank Assetpoint service is subject to the terms, conditions, and disclosures set forth in the Bank Assetpoint agreements, including the Bank Assetpoint Participant Agreement. Bank Assetpoint is provided by Assetpoint Services, LLC, a wholly owned subsidiary of Promontory Interfinancial Network, LLC. Assetpoint Services, LLC does not, merely by permitting the listing of an asset on the website, endorse the asset or the party posting information about it.
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.