At Piermont Bank, we are thrilled to kick off a new deposit attraction program that gives large depositors the peace of mind to insure their interest-bearing money above the maximum FDIC coverage limit. This valuable benefit comes as a result of Piermont’s recent participation in the Advancing Communities Together (ACT) Deposit Program that aims to accelerate financial impacts on community development through collaborations among ACT network banks, all designated Community Development Financial Institutions (CDFIs) or Minority Depository Institutions (MDIs).
Additionally, depositors get recognized for supporting banks serving minority communities, a tangible pathway to bolster their social responsibility commitment and evidence to benchmark and report on their environmental, social and governance (ESG) practices. The recognition earned through the ACT program adds a valuable narrative for depositors to communicate their ESG achievements with stakeholders, who are increasingly focused on organizations’ commitment to doing good by people and by the planet.
The ACT Deposit Program represents an innovative and collaborative approach that brings multiple players onto one platform where every party plays a distinct role to help drive much needed capital to underserved communities. To that end, every party wins. On this platform, participating banks, all FDIC insured, offer a secure protection mechanism for large depositors through extended FDIC insurance. These banks in turn direct deposits under the program for community development needs.
How does it work? Well, network banks need deposits to funnel more lending to community development. They need to band together and be innovative to deliver on this goal. So, to attract large deposits, the ACT program allows the relationship bank to divide any large deposit into multiple accounts under the standard FDIC insurance maximum of $250,000 and place them across network banks under IntraFi, a deposit placement and wholesale funding service provider which sponsors the ACT program in cooperation with the Community Development Bankers Association (CDBA) and the National Bankers Association (NBA). By pooling participating banks together, ACT provides access to FDIC insurance that would otherwise cost large depositors millions of dollars to insure the amounts exceeding $250,000.
As a participating bank and the nation’s first multi-racial MDI, Piermont streamlines the process by offering a one-stop service, meaning depositors only interact with Piermont as their relationship bank while all backend operations are handled seamlessly. Currently, Piermont depositors benefit from a competitive interest rate, which is adjustable based on market fluctuations. In addition, Piermont walks with depositors every step of the way and supports them to promote their social responsibility practice related to their ACT deposits.
Contact [email protected] to start participating in the ACT Deposit Program.
What experts say about the ACT Deposit Program:
“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. 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.”
- Wendy Cai-Lee, Founder & CEO, Piermont Bank
“The ACT Deposit Program created a secure and efficient way for community development banks to attract and retain large institutional deposits. The support from these firms and future depositors will create a lasting positive impact in underserved areas.”
- Jeannine Jacokes, Chief Executive Officer of Community Development Bankers Association
“The ACT Deposit Program offers a streamlined approach for providing essential deposits to minority banks serving the underserved and communities of color. This initiative empowers our members to facilitate homeownership, business growth, and financial stability, contributing to job creation and the overall vitality of communities across America.
- Nicole Elam, President and CEO of the National Bankers Association
“We look for opportunities where our resources can help organizations grow and make a positive change in the communities they serve. Providing access to reliable financial solutions is an incredibly important service. We are excited about the increased lending and financial inclusion provided by the ACT Deposit Program and look forward to following the program’s impact and progress.”
- Steven Glenn, Managing Director, Chief Financial Officer, Chief Operating Officer, Warburg Pincus.