New program enables institutional depositors to access higher aggregate levels of FDIC insurance across participating banks while also making a difference for underserved communities
NEW YORK, Aug. 7, 2024 /PRNewswire-PRWeb/ -- Piermont Bank, a fully chartered digital commercial bank, is pleased to join a new national initiative, the Advancing Communities Together Deposit Program, that enables institutional depositors to access higher aggregate levels of FDIC insurance across participating banks while also making a difference for underserved communities.
"As the Nation's first - and one of the only four - multi-racial Minority Depository Institutions (MDIs), Piermont Bank has been investing more resources in creating equal financing access for women and minority owned businesses," said Wendy Cai-Lee, Founder & CEO, Piermont Bank. "The ACT program allows companies, nonprofits, and large depositors to invest in our mission and join our effort of creating financial equality with peace of mind. We hope more institutions can take advantage of this new, safe, and streamlined offering."
The ACT Deposit Program is designed to channel vital funding to banks like Piermont Bank serving minority communities across the country, while also providing depositors with access to millions of dollars in aggregate FDIC insurance across network banks.
The program was created by the national professional organization, Community Development Bankers Association (CDBA).
"The ACT Deposit Program created a secure and efficient way for community development banks to attract and retain large institutional deposits," said Jeannine Jacokes, chief executive officer of CDBA, which represents CDFI, MDI, and climate-focused banks. "The support from these firms and future depositors will create a lasting positive impact in underserved areas."
How the Program Works
In addition to Piermont Bank, 75 other community development financial institutions (CDFIs) or minority depository institution (MDIs) banks have joined the ACT Deposit Program. Deposits in the program yield near-market interest rates, and depositors can receive reports on how participating banks use deposit funding to support their communities.
A participating depositor chooses a CDFI or MDI bank as its relationship bank, which then allocates part of the deposit to other participating banks. This helps share the benefits of each deposit across all banks in the program. But each depositor works directly and solely with its relationship bank and receives one aggregated statement.
The ACT Deposit Program operates within ICS, the IntraFi Cash Service, a time- and volume-tested service from IntraFi.
To learn more about how your organization can do good while also accessing protection for your funds, please email [email protected].
For more information about the ACT Deposit Program, please visit the program's website: https://www.intrafi.com/act-deposit-program.
A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. Certain conditions must be satisfied for "pass-through" FDIC deposit insurance coverage to apply. To meet the conditions for pass-through FDIC deposit insurance, deposit accounts at FDIC-insured banks in IntraFi's network that hold deposits placed using an IntraFi service are titled, and deposit account records are maintained, in accordance with FDIC regulations for pass-through coverage.
About Piermont Bank
Piermont Bank is a tech-forward commercial bank founded in 2019 with a mission of changing the face and pace of banking. Piermont is women-founded, entrepreneur-led, technology-fortified. It provides an unprecedented experience that blends the best of banking and technology. At Piermont, we deliver peer banking – we meet you where you are, reflect your business needs, and act with speed. For more information, visit www.piermontbank.com.
About CDBA
For over two decades, the Community Development Bankers Association has led the community development banking movement, advocating for financial inclusion, racial equity, and economic opportunities in the nation's most economically distressed areas. The CDBA and its member banks are located in 26 states and Washington, D.C., and are unwavering in their commitment to making banking a force for good. For more information on the CDBA's mission and initiatives, please visit www.cdbanks.org.
About IntraFi
A trusted partner chosen by more than 3,000 financial services companies, IntraFi defines success not by the volume of transactions we enable, but by the quality of relationships we form. Our network, established over 20 years ago, connects institutions of all sizes to help participants build stronger relationships with their customers, fund more loans, seamlessly manage their liquidity needs, and earn fee income. The network brings scale, giving each participant access to tens of billions of dollars in funding, the highest per-depositor and per-bank capacity, and the peace of mind of being able to make large-dollar placements. To learn more, visit www.intrafi.com.
Media Contact
Bill McCue, Piermont Bank, 1 7182087391, [email protected], www.piermontbank.com
SOURCE Piermont Bank
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