Promontory Interfinancial Network offers a wide range of flexible funding solutions to help banks of all sizes meet both planned or unexpected demands and to adjust based on their liquidity position. Thousands of banks choose the company’s solutions, whether seeking core or brokered deposits, retail or wholesale funding, fixed- or floating-rate pricing, overnight or term options, or millions or billions of dollars. Funding is available without credit lines, ongoing collateralization, or stock purchase requirements.
The company is the inventor and #1 provider of reciprocal deposit services. It offers unique solutions that bring institutions together in ways that enable each to benefit from The Power of Many—a network of financial institutions working together to offer services that might be too difficult or costly for individual participants to offer on their own. Nearly half of all banks in the United States are members of the Promontory Network, the largest bank network of its kind. And more than 90% of the top-performing ICBA community banks with assets greater than $1B are members of the Promontory Network. Promontory Network members receive ongoing access to the company’s deep sales and marketing expertise, as well as operational support and training
Promontory Interfinancial Network’s relationship-building, liquidity management, and funding solutions include CDARS; Insured Cash Sweep, or ICS; and Insured Overnight Funding.
ICS and CDARS—relationship-building and liquidity management solutions: Grow franchise value, regardless of liquidity position, and increase profitability by attracting locally based customer deposits, providing balance sheet flexibility, lowering funding costs, and reducing collateralization burdens.
Banks can offer customers access to multi-million-dollar FDIC insurance through a single bank relationship on funds placed into demand deposit accounts, money market deposit accounts, or CDs. Keep the full amount of deposits on balance sheet to fund loans, or move the deposits off balance sheet (just the funding, not the relationship) for fee income. Switch between options as market conditions change.
Deposits placed through the company’s insured deposit offerings tend to be large and “sticky,” thereby lowering customer acquisition costs and providing more opportunities for cross-selling. And the offerings can enhance a bank’s reputation for providing personal service; bank customers enjoy seamless protection, a streamlined experience, and transparent reportingꟷall benefits that are attributed as coming from their bank.
ICS, CDARS, and Insured Overnight Funding—wholesale and retail funding solutions: Banks can replace more burdensome and costly funding options, such as collateralized deposits and rate-sensitive deposits from Internet listing services, with the company’s wholesale and retail funding solutions.
Wholesale, fixed- or floating-rate funding in terms ranging from overnight to 7 years is available. The funding counts as deposits, not borrowings, and no lines of credit, collateralization, or stock purchases are required. Banks can use the company’s services to improve ROA by reducing tracking costs and by repurposing funds previously invested in collateral into more productive, revenue-generating initiatives, such as local lending. With its wide range of funding choices, Promontory Interfinancial Network can serve as a one-stop shop for a bank’s funding needs.
ICBA Member Advantages
- Access to free, web-based seminars
- Go to market checklist – individualized strategies for community banks
- Operations trainings