Community Financial Institutions Face 2 Common Problems in 2025. ADM Is the Solution.

When interest rates were low a few years ago, attracting depositors seemed to only require having a presence in the right geographical area. However, rates have risen, the marketplace has become crowded, and depositors have expanded their expectations.

This shifting landscape has left banks and credit unions with two key problems. First, their target market is often confined by their geographic footprint. Second, high-value depositors are seeking accounts that provide full protection for their cash. Fortunately, our patent-pending technology delivers actionable solutions to both issues.

Problem 1: Community Banks Have Limited Geographical Footprints and National Competition Is Increasing

Community-focused financial institutions have key advantages in local market knowledge and relationships. However, the same hometown focus that provides these advantages can also be a hindrance to attracting diverse depositors. These local markets are also highly competitive, and this makes new deposits even harder to find.

Financial institutions are also facing more competition than ever from national companies encroaching on their target customers. Payment processors, brokerage firms, and even credit card companies have expanded to offer traditional banking services and often offer high introductory rates of return that are difficult for traditional institutions to match.

Altogether, geographical constraints coupled with new online competitors make it difficult for community financial institutions to attract the cash they need. Fortunately, there is a simple solution.

Solution: Partner With ADM To Reach Customers Beyond the Backyard

Through years of partnership with banks and credit unions across the country, we have developed solutions that provide access to nationwide depositors without the expense of expanding their footprint. These solutions are built on patent-pending technology that provides stable, long-term deposits from our corporate and public clients.

We work with both banks and credit unions to place deposits for our business clients, and each financial institution can set their own rates along with limits on the deposits they’d like to receive. If a financial institution needs deposits, they can contact us, and we will do our best to fulfill their needs and place more deposits with their institution. Best of all, there are no fees to join our network.

Problem 2: Limited Deposit Insurance Drives High Value Depositors to the Competition

High value depositors need protection for all their cash, and their balances can easily exceed a million dollars. However, the current limit on FDIC and NCUA insurance is just $250,000, leaving large deposits exposed to unnecessary risk.

Banks have options to provide access to extended government insurance, but they carry additional costs and limitations that are usually better suited for larger institutions. For community banks and credit unions, these services have fallen short, leaving the most valuable depositors vulnerable and looking for alternatives. Thankfully, we have the solution.

Solution: Partner With ADM For Access to Extended Deposit Insurance

Our newest service, called AMMA™ Exchange, allows financial institutions to increase their competitiveness by offering simple access to extended deposit protection. This ability to enhance the safety of funds is a key driver of customer retention as well as an avenue for strengthening the financial institution’s reputation.

Financial institutions can realize these benefits without impacting their balance sheet stability or liquidity ratios. Here’s how it works in a simplified example:

• A new customer arrives at a financial institution with $1 million and demonstrates a desire to have the full amount covered by government insurance.
• The financial institution opens an account for the customer and ADM simultaneously opens an account for them in our network.
• The customer’s $1 million deposit is sent to ADM and distributed across our network in increments under $250,000 to achieve full government-backed insurance.
• ADM sends $1 million – collected from multiple clients in our network – back to the financial institution.

As this example shows, we can return fully insured deposits on a 1:1 basis to our financial institution partners. This innovative approach allows our partners to attract and retain high value depositors without compromising their financial stability.

With the combination of new deposits through our network and the unique benefits of AMMA™ Exchange, we provide answers to two problems currently plaguing financial institutions. With these issues resolved, they can focus on serving their communities and shareholders.

Partner With ADM To Attract More Deposits and Keep Current Customers

With our solutions, financial institutions can take advantage of patent-pending technology to attract new customers and keep their existing deposits. Banks and credit unions that join our network can access stable, long-term cash from businesses across the country without expanding their physical footprint.

AMMA™ Exchange also fills an existing gap by allowing financial institutions to offer access to full deposit insurance for their high value customers. This keeps liquidity ratios stable while strengthening the local relationships that form the bedrock of community banking.

To learn more about our services and become a partner, contact us today.