How Banks Benefit from Partnering with ADM

An image of the world, focused on the United States with a network of digital connections overlaid on it - symbolizing the ADM network of community banks

The American Deposit Management Co. [ADM] is a fintech company that provides a suite of cash management services designed to help businesses reduce the burden, and increase the value, of their cash management processes. These services provide a multitude of benefits for organizations who are trying to optimize their cash management. But what benefits are afforded to banks that partner with ADM?

A larger geographic footprint provides access to additional deposits when your bank is in need.

Obviously, the most important goal of a bank is to grow their deposit base. And, fintech is changing traditional banking in that regard. When a business makes a deposit into their AMMA™ account with ADM, their funds are then made available to our network of banks. These funds provide our partner banks with a stable source of funding that can assist in meeting reserve requirements and deposit.

For many community banks, their geographical reach is limited by their physical location. This means the pool of potential depositors will only extend as far as a client is willing to travel to their bank. This leads many banks to rely on Federal Reserve loans to meet their obligations in a pinch.

On the other hand, those banks who have partnered with ADM benefit from access to a nationwide stream of business deposits. There is no need for additional marketing or technology to earn deposits from clients all over the U.S. Simply join our network and gain access to this valuable resource.

Partnering with ADM provides flexibility and liquidity for banks.

When a bank partners with ADM, they have control over their funding needs. Once in our network, banks can adjust the rate they are willing to pay for deposits as needed. In addition, banks can easily set their maximum balances, so they only receive the funds they need.

This means that partner banks no longer need to rely solely on The Fed when they need cash in a pinch. And at ADM, we take pride in making the process of gathering deposits easy. In fact, our process is much easier than borrowing from The Fed.

One Way Sell™ by ADM provides additional revenue for banks with surplus deposits.

It’s no longer a secret that ADM provides an invaluable service to businesses with cash on hand. But you may be surprised to know that we can also extend that service to our partner banks.

When a bank joins the ADM network, it will have access to One Way Sell™ [OWS]. With OWS, an ADM partner bank with excess cash on hand can distribute the funds throughout our network to achieve a more competitive return than the bank would earn at The Fed.

This means the ADM network can provide the same safety, liquidity, and return to our banking partners as we provide to our business clients. With OWS, partner banks can increase the return on their excess funds with less effort. That’s what we call Smarter Cash™.

No Fees to Partner with ADM

The best part about our services is the cost. There is no fee to join the ADM network. Unlike other services such as CDARS or ICS, we do not charge a fee to our member banks.

When a bank partners with ADM we enter into a revenue share agreement. This means our business customers don’t pay fees and neither do our partner banks. When funds are deposited into your bank via the ADM network, you get the rate you submitted in your bid. This win-win is how ADM has grown into the premier deposit management company in the U.S.

Join the ADM network of banks today.

If you’re interested in joining the ADM network of banks, don’t hesitate to reach out to a member of our team today. We will lead you through the setup process, and your bank will soon have access to a steady stream of funding and the most competitive rates available on excess deposits.

If you’re looking for even more valuable insights on banking, interest rates, and effectively managing your business cash, be sure to check out our Insights page and follow us on LinkedInTwitter, and Facebook.