Introducing AMMA™ Exchange: A Modern Solution for Extended Deposit Protection

In the past, financial institutions could only compete for high-value depositors by offering more competitive interest rates than their peers. Today, they have another option to attract large customers – extended safety.

Security of cash reserves has always been an important factor for depositors with high balances, but it has become even more pronounced due to the recent failures of large financial institutions. Depositors need assurance that all their cash – even funds above the FDIC or NCUA limit – is safe from financial institution failure. We are excited to announce a new solution that allows financial institutions to offer the safety their customers crave – AMMA™ Exchange.

What is AMMA™ Exchange?

AMMA™ Exchange is the latest service from our company, American Deposit Management. It allows banks and credit unions to safeguard depositor cash through access to extended protection from the FDIC or NCUA.

We have spent decades helping financial institutions grow their deposits through a concept we call Marketplace Banking™. Our latest service is intended to further strengthen relationships with our financial institution partners by helping them to attract and retain high-value depositors.

How Does AMMA™ Exchange Work?

When a credit union or bank has a client with deposits exceeding the NCUA or FDIC limit, they can utilize AMMA™ Exchange to achieve access to full government insurance. This helps the financial institution attract and retain large depositors without altering their current liquidity ratios.

Consider this example of AMMA™ Exchange in action at a credit union. A member walks in with one million dollars and would like full insurance on their deposit. The member would open an account at the credit union while ADM opens one for them in our program. Their one-million-dollar deposit is sent to ADM and distributed across financial institutions in $245,000 increments to ensure full government-backed insurance.

Simultaneously, ADM sends one million dollars – collected from multiple clients in our network – back to the credit union in the same manner. This ensures the member’s deposit is fully insured, and the funds returning to the credit union are also considered insured deposits.

Key Benefits of AMMA™ Exchange

Access to extended deposit protection through AMMA™ Exchange provides several key benefits for financial institutions. These include the ability to attract and retain depositors, expand and strengthen relationships, and maintain current liquidity ratios.

Attract And Retain High-Value Depositors

One of the main hurdles to attracting large depositors like municipalities and corporations is a lack of safety for funds over the FDIC or NCUA limit. AMMA™ Exchange solves this issue by providing banks and credit unions the ability to offer access to full deposit protection. In turn, these financial institutions can gain a key advantage over their competitors without having to rely on rates as the only differentiating factor.

Expand and Strengthen Relationships

By allowing a financial institution to grow their insured deposits, AMMA™ Exchange instills confidence in the institution’s ability to meet depositor’s safety needs. In turn, the financial institution can provide peace of mind for their clients with a single relationship – preventing them from needing multiple banking relationships to achieve full government protection.

When depositors can meet their safety needs with a single financial institution, they are more likely to bring additional deposits from their personal or business accounts to that institution. This creates additional revenue streams for a financial institution and promotes deposit growth without the need to compete solely based on interest rates.

Maintain Current Liquidity Ratios

When a financial institution uses AMMA™ Exchange, they keep their clients and increase deposit levels by having the ability to offer additional deposit protection. Funds never leave the bank or credit union’s balance sheet, so they can maintain their current liquidity ratios.

Get Started With AMMA™ Exchange Today

AMMA™ Exchange is an ideal solution for credit unions and banks who want to gain a competitive edge. To learn more about how it could benefit your organization, contact a member of our team today or review the following Frequently Asked Questions.

Learn even more about AMMA™ Exchange at our upcoming webinar on April 17^th at 10:00 CT which includes a live Q&A. Register here: AMMA™ Exchange Live Webinar.

FAQ

How will client funds be insured?

ADM will establish an account within our system for each depositor and strategically distribute their funds across our network of partner financial institutions. This ensures that all balances within the program have access to full FDIC/NCUA insurance*.

Will our liquidity ratios change by sending depositor funds to ADM?

No, ADM will open a deposit account with your institution, allowing us to return fully insured deposits on a 1:1 basis, aligned with the funds deposited with ADM.

How are client interest rates set?

Interest rates will be established through a mutual agreement at each client account opening.

Will ADM work directly with my depositors?

ADM will work directly with the financial institution, collecting only the necessary account information to establish an account in our system. However, we will have no direct communication with your depositors.

What is the cost of the program?

ADM can either invoice our fee or apply a spread to our account to cover the fee.

Will depositors be able to view account information?

ADM offers flexible information-sharing options. We can provide depositors with view-only access to our portal, share files with your institution for data import, or integrate systems via API, enabling seamless information display on the end user’s account.

How will fund transfers be executed?

All deposit and withdrawal requests for the AMMA™ Exchange program will be coordinated between the depositor and the financial institution. This can easily be done through one of the integration methods mentioned above.

How quickly will depositors have access to their funds?

Accounts will have next-day liquidity as long as funds are requested by 1:00 PM ET the day before.

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