Cross River Launches Service to Access FDIC Insurance Coverage on Large Deposits through API-Enabled Automated Sweeps Using the IntraFi Cash Service®
Cross River
API-enabled integration streamlines access, empowering fintechs to offer end customers the ability to manage and optimize deposit products
FORT LEE, N.J. - Cross River Bank (“Cross River”), a technology infrastructure provider that offers embedded financial solutions, announced the launch of its automated sweep feature using the IntraFi Cash Service. The capability will enable Cross River’s Banking-as-a-Service (BaaS) clients to access millions in aggregate FDIC insurance coverage across network banks for their end customers, providing a seamless, automated solution for managing large deposits.[1]
Through a unique API-enabled integration with Cross River’s proprietary banking core (COS), BaaS clients can now access this differentiated feature and offer end customers the ability to effortlessly sweep their excess funds into IntraFi® network banks within its extensive network. This feature allows BaaS clients to access millions in aggregate FDIC-insurance coverage (per ownership category) across network banks while also reducing the administrative burden of manually distributing funds across multiple institutions.
"Cross River is committed to providing our clients with the tools they need to stay ahead in an evolving financial landscape," said Adam Goller, EVP and Head of Fintech Banking at Cross River. "Integrating an automated sweep feature from IntraFi directly into our offerings via APIs underscores the distinct value of our capability, enabling our clients to better serve their customers with greater peace of mind."
The automated sweep feature provides a seamless experience for BaaS clients by allowing them to easily embed the feature into existing financial platforms via Cross River’s APIs, while enabling end customers the opportunity to protect large deposits by accessing FDIC insurance coverage across multiple banks (subject to applicable limitations). Particularly valuable for fintechs that hold large-balance customer funds with Cross River or process large-volume transactions, the automated sweep feature is designed to make these funds eligible for the protection of FDIC insurance while allowing their customers to access their deposits. End customers will be able to view proposed deposit placements, exclude banks where they have previously-established relationships, and maintain access to their funds, while continuing to earn interest on their deposits.[2]
Cross River continues to lead the way in providing innovative solutions that enable its clients to deliver robust and responsible financial services. The launch of the feature is a testament to the company’s ongoing commitment to enhancing the flexibility, security and efficiency of its banking infrastructure.
[1] Cross River’s automated deposit sweeps featureis subject to separate terms, conditions and disclosures to be agreed to by,and provided to, end customers. Themaximum aggregate FDIC insurance coverage amount available for deposits placedthrough Cross River’s automated deposit sweep may change from time-to-time in Cross River’ssole discretion. FDIC insurance coverageis limited to the standard maximum deposit insurance amount (“SMDIA”)of $250,000 per depositor, per FDIC-insured bank, per ownership category. A depositor may access an aggregate amount ofFDIC insurance in excess of the SMDIA by allocating deposits across a network ofmultiple FDIC-insured banks. A list identifying IntraFi network banks may befound at https://www.intrafi.com/network-banks. A depositor may exclude banks from eligibilityto receive its funds. Certain conditions must be satisfied for“pass-through” FDIC deposit insurance coverage to apply. Although deposits are placed in incrementsthat do not exceed the SMDIA at any one bank, a depositor’s balances at CrossRiver may exceed the SMDIA before settlement for deposits or after settlementfor withdrawals. The depositor must make any necessary arrangements to protectsuch balances consistent with applicable law and must determine whetherplacement through an IntraFi service satisfies any restrictions on itsdeposits. IntraFi and IntraFi Cash Service are registered trademarks of IntraFiLLC.
[2] Interest rates are set in the sole discretion ofCross River and are subject to change from time-to-time.