Island IP’s Expanded FDIC Daily Sweep is a patented and patents pending technology that enables broker-dealers to offer an expanded FDIC-insured daily sweep program (tiered or flat rate) that aggregates end-client cash balances to money-market deposit accounts at participating banks. The patented process enables cash to be divided among a number of banks and provides expanded levels of FDIC insurance with daily liquidity for all account types.  These products are also known as “insured deposit programs” or “FDIC insured sweep programs”.

• Safe alternative to money-market fund sweeps
• Earn more on cash balances and reward the most profitable clients by cohort or specific accounts via tiered interest rates
• Increase AUM by capturing deposits traditionally held at banks
• Attract high-net-worth households and business clients through expanded FDIC insurance with our insured deposit sweep program providing interest and unlimited transactions
• Provide unlimited checks/cards
• Reduce number of wire transfers for a transaction settlement

BENEFITS
Expanded FDIC-Insured Daily Sweep provides valuable benefits for broker-dealers, participating banks and investors.

Broker-Dealer Benefits

• Enables increased profitability even while paying clients higher rates on cash balances because this insured offering with tiered interest rates facilitates rate differentiator for specific individual accounts
• Promotes asset consolidation and motivates clients to combine confidently all financial assets in one place
• Attracts small businesses through interest on commercial checking and unlimited transaction features

Participating Bank Benefits

• Provides access to a new source of deposits without costly infrastructure, marketing or servicing and without affecting costs for existing deposits
• Have control and stability of the deposit flow to set and adjust caps on assets as needs change
• Eliminates reserve requirements because deposits do not require collateral, based on the unique patented process
• Minimizes wire transfers and generates more deposit stability

Investor Benefits

• Receives increased FDIC insurance protection and a competitive rate of interest, as compared with money-market mutual funds, repo sweep programs or bank checking/savings accounts
• Provides daily liquidity with access to cash when needed, using debit cards and checks with unlimited transactions
• Simplifies accounts because one account can replace multiple accounts; and the single account can be held with the financial advisor, broker or bank

 

Island IP is an ideal partner for your intellectual-property licensing needs.

For additional information, please contact
Bruce Bent II of Island Intellectual Property
at 516.472.0684 or BBentii@doublerockcorp.com