Why does ADMC exist?
CFOs and Chief Investment Officers are faced with finding places to safely manage their cash portfolio and get a great return in that investment. What our firm does is take large deposits and we invest that into a network of FDIC insured banks so that the money is all FDIC insured. It provides safety for the depositor and a very competitive rate of return that they need that on that money.
Is ADMC exempt from the $250,000 FDIC insurance limit?
No, each deposit that we place is under the FDIC limit. For instance, if you think of a million dollar deposit, we would place that into five banks and each deposit amount would be under the FDIC limit. For our customers, they have the convenience of just having one point of entry, one statement and one advisor to work with, ADMC.
Even though the money is insured, what happens if a bank fails?
We believe an ounce of prevention is worth a pound of cure. All of the banks that we work with are well capitalized. We underwrite all of our banks internally and verify our results with third party validations. This ensures our program has screened all of the banks that we work with. We actively manage our clients funds to remove them a bank starts to go below our underwriting standards. In the event that there should be a bank failure, we have the records necessary to retrieve those funds for our customers. Our records are reviewed by third party providers to insure that they are accurate, well kept and safe. To date we have never experienced any liquidity event or bank failure within our network that caused any issues for our customers.
How are you getting such great deposit rates?
Because we are aggregating many customers’ deposits, we are able to provide a steady and reliable funding source to our bank partners, and in exchange for that, we are able to negotiate rates for our customers that they would be unable to obtain negotiating on their own. If you think of a buyer’s club like COSTCO or Sam’s Club, we are just like that for depositors. We group depositors together to create buying power.
How does a business or municipality open an account with ADMC?
It’s pretty simple to open an account with us. There’s short application (takes on average 10 min to complete) and a few agency legal docs to sign and we’ll have the account open next day. Transfer funds via wire or ACH an we’ll get them deployed into our bank network and earning interest. If a client is looking for a more hands-on-approach we’ll sit in person or on the phone and we get their cash cycle and help them plan out where they need the investment, where they need cash versus when they are saving it. We have sub accounting features, payment features that they can use and then they fund the account and we go ahead and investment.