In a market where deposit competition is fierce and industry turmoil has placed an increased emphasis on safety, one of the best ways to proactively reassure your most-valued customers could be joining a reciprocal deposit network. Per IntraFi’s quarterly survey of bank executives, as of Q2 2024, 90% of institutions reported that deposit competition had worsened or stayed the same compared to 2023, with most expecting this trend to continue into 2025. Given this competition, access to millions of dollars of aggregate FDIC insurance across network banks in a reciprocal deposit network can be a valuable tool to any bank. WHAT DO BANK CUSTOMERS SAY ABOUT RECIPROCAL DEPOSIT NETWORKS? Reciprocal deposits (i.e., deposits a bank receives through a deposit network in return for placing a matching amount of deposits at other network banks in increments under the FDIC insurance limit of $250,000) can delight large depositors and bankers alike. Cindy Thomas, a depositor who handles millions of dollars flowing through a property management company in Silver Spring, Maryland, found significant value in the reciprocal deposit products offered by her bank. Choosing a Deposit Network and Maximizing Its Value for Your Bank By Steve Kinner, Senior Managing Director IntraFi, ICBC Associate Member 18 | INDEPENDENT REPORT
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