Promontory Interfinancial Network

Promontory Interfinancial Network, LLC, is a privately held firm with a network of financial institutions that has approximately one-third of all U.S. commercial banks and thrifts as members.[1]

Promontory offers FDIC-insured deposit placement services, including the Certificate of Deposit Account Registry Service®, or CDARS®; Insured Cash Sweep® service, or ICS®; and the Insured Network Deposit® service, or IND®.[2]

Promontory also publishes a quarterly business outlook survey of banks.[3] Promontory’s services help bank depositors to access FDIC insurance above the $250,000 limit through a single bank relationship. As Reuters has noted, Promontory’s services “rose in popularity during the 2008 financial crisis. Money is spread around in chunks across a network of ‘well-capitalized’ banks, with maturities of four weeks to five years.” In some cases, however, the yields are lower than those on CDs and money market accounts.[4]

The company was founded by a number of former federal banking regulators and BNY Mellon provides issuance, custody, settlement, and recordkeeping services for Promontory.[5] The President and CEO of the Company is Mark Jacobsen, a former chief of staff of the Federal Deposit Insurance Corporation (FDIC) and inventor of 13 patents related to Promontory’s FDIC-insured deposit placement services. [6]

References

  1. ↑ 1“ICBA Expands Cooperative Alliance with Promontory Interfinancial Network to Include Bank Assetpoint”, ICBA website, February 4, 2013. http://www.icba.org/news/newsreleasedetail.cfm?ItemNumber=154566
  2. ↑ 2 “Company Overview of Promontory Interfinancial Network, LLC” Bloomberg Business http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=45817065
  3. ↑ 3 Jackie Steward, “Small Banks Start Preparations for Higher Deposit Rates,” American Banker, September 8, 2015. http://promnetwork.com/home/news/business-outlook-survey/
  4. ↑ 4 Lauren Young, “Advisers steer clients to safer havens in stormy market,” Reuters, August 4, 2011
  5. ↑ 5 http://www.princeton.edu/~blinder/bio.htm http://www.bloomberg.com/Research/stocks/private/person.asp?personId=51118263&privcapId=45817065 & http://www.aba.com/Products/Endorsed/Pages/IND.aspx
  6. ↑ “Company Overview of Promontory Interfinancial Network, LLC” Bloomberg Business http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=45817065
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