The IBA is excited to announce our newest Preferred Service Provider is a familiar name to many of you: IntraFi!
IntraFi has been a solution for Indiana banks for many years, along with being a long-time member and supporter of the Indiana Bankers Association. They assist banks in areas of large deposit and liquidity management. You may also know them through their product CDARS. CDARS, in addition to ICS (IntraFi Cash Service), allows banks to provide customers with easy access to millions in aggregate FDIC insurance across IntraFi’s network of banks.
This service became very popular and needed during the 2023 financial crisis involving Silicon Valley Bank, Signature Bank and others, when customers made bank withdrawals because they realized their deposits weren’t secure. To minimize such actions in the future, banks connected with IntraFi to use their service to gain FDIC insurance for their large depositors and provide greater comfort to their customers.
Products like ICS and CDARS support a bank’s efforts to grow franchise value, increase profitability and manage its balance sheet. They can also allow a bank to attract large-dollar, low-cost deposits from local, safety-conscious customers (including corporate entities), small businesses, municipalities and other government entities, nonprofits and advisors who might otherwise bank elsewhere. Government entities in all states can use the products and have already placed billions of dollars through ICS and CDARS.
Growing relationships is always an important aspect of community banking and with these products, banks can do so regardless of their liquidity position and can use the full amount of the deposits to fund loans or sell the funding (not the relationship) for fee income.
Finally, banks can also replace higher-cost funding (e.g., repurchase sweeps and letters of credit), reduce collateralization requirements and repurpose funding previously invested in collateral into higher-earning assets.
Why IntraFi? They are the number one provider of large-deposit placement solutions. The company invented reciprocal deposits and holds 20 patents supporting its various offerings. IntraFi has built the largest bank network of its kind, enabling it to offer breadth, depth and stability, along with the largest capacity, of any competing provider. They do not compete for depositors and never have possession of customer funds; and IntraFi has been thoroughly tested and embraced by thousands of financial institutions across the nation, including 60% of all U.S. banks.
To learn more about IntraFi and the details involved with these products, contact Erich Buckenmaier at [email protected], or 703-292-3354; or you can contact me at [email protected], or 317-333-7145.
IntraFi is not an FDIC-insured bank, and deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. A list identifying IntraFi network banks may be found at IntraFi.com/network-banks.
