Patented and patents pending technology and processes enable banks to provide their clients with expanded FDIC insurance with daily liquidity. This technology facilitates the exchange of deposits with other banks to better manage balance-sheet and liquidity needs.
- Provide customers with expanded FDIC protection without the bank decreasing its deposit base (reciprocal deposit relationships)
- Generate low-cost deposits to fund loan demand as needed
- Send excess deposits to other banks to generate income and improve balance-sheet ratios
- Create a greater efficiency of cash flow in the banking community
- Highly scalable and flexible platform
PRODUCT FEATURES
FDIC Insurance
Expanded levels of FDIC insurance provide protection beyond the current maximum of $250,000 per account registration or type. The reciprocal deposit relationship offers expanded FDIC insurance without decreasing the bank’s deposit base, and the expanded FDIC insurance benefit encourages customers to confidently consolidate deposits at one bank. For municipal (public) funds, expanded FDIC insurance is highly attractive when deposits must be fully collateralized or FDIC-insured; and it can reduce or eliminate unprofitable repo sweep programs.
Flexible Design
The program may be run on a platform that seamlessly matches send, receive and reciprocal deposits within the network. Banks and their customers have the ability to selectively opt out of any bank(s) they choose. This patented technology and process enable accounts to earn interest and enjoy unlimited check-writing ability, all with expanded levels of FDIC insurance through one account—an attractive benefit for commercial accounts. And it provides a flexible solution that is compatible with the nation’s most recognized core processors.
Tiered Interest Rates
This patented technology enables banks to offer a tiered interest-rate structure. This strategy can be utilized to increase profitability and attract, as well as retain, the best customers. This tiered rate capability is more robust than what most bank systems offer today.
Portfolio Accounting
An account is maintained for each sending-bank customer and includes transaction history and account balances per bank. Effectively, it “books and records” all customer accounts and deposit activity as well as actual interest accrued for each customer position allocated per bank.Sending- and receiving-bank activity is calculated and tracked daily. Sending and receiving banks receive daily net-settlement reports at the end of day, showing daily activity, month-to-date income accruals and customer account positions.
Statements can be generated for all customers of a sending bank after end-of-day processing on the last calendar day of the month. These statements include: starting/ending account balances and transactions posted for the statement period; interest paid; and a summary of the deposit balance at each of the receiving banks as of the statement date.
BENEFITS
The program may be run on a platform that seamlessly matches send, receive and reciprocal deposits within the network. Banks and their customers have the ability to selectively opt out of any bank(s) they choose. This patented technology and process enable accounts to earn interest and enjoy unlimited check-writing ability, all with expanded levels of FDIC insurance through one account—an attractive benefit for commercial accounts. And it provides a flexible solution that is compatible with the nation’s most recognized core processors.
Tiered Interest Rates
This patented technology enables banks to offer a tiered interest-rate structure. This strategy can be utilized to increase profitability and attract, as well as retain, the best customers. This tiered rate capability is more robust than what most bank systems offer today.
Portfolio Accounting
An account is maintained for each sending-bank customer and includes transaction history and account balances per bank. Effectively, it “books and records” all customer accounts and deposit activity as well as actual interest accrued for each customer position allocated per bank.Sending- and receiving-bank activity is calculated and tracked daily. Sending and receiving banks receive daily net-settlement reports at the end of day, showing daily activity, month-to-date income accruals and customer account positions.
Statements can be generated for all customers of a sending bank after end-of-day processing on the last calendar day of the month. These statements include: starting/ending account balances and transactions posted for the statement period; interest paid; and a summary of the deposit balance at each of the receiving banks as of the statement date.
BANK BENEFITS
Expanded FDIC Insurance provides valuable benefits for banks as well as for end-customers.
Profitability
Expanded FDIC insurance encourages consolidation of deposits from other institutions and deepens existing relationships, thus creating more opportunity to cross-sell customers into other bank products
Liquidity management
Flexible tool accesses competitively priced deposits when loan demand increases, sends deposits to avoid negative carry and improve balance-sheet ratios, and utilizes reciprocal deposits to increase customer FDIC insurance levels without decreasing bank’s deposit base
Increased Competitiveness
Expanded FDIC insurance is attractive to all clients, including municipalities, corporate/commercial and nonprofit customers, and high-net-worth households
End-Customer Benefits
- Expanded FDIC protection on deposits, regardless of their category of legal ownership
- Daily liquidity—funds are accessible through a money-market deposit account
- Interest on the idle balances in accounts
- Working relationship with trusted bank and staff instead of multiple banking relationships
- Ability to opt out of banks where a customer does not want money to be deposited (or where a bank does not want a customer’s money deposited)
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
Click here to view Patents Held >
Island Intellectual Property LLC is a wholly owned subsidiary of Double Rock Corporation.
