What is Marketplace Banking™ and How Could It Help Businesses?

It’s difficult to overstate the importance of business cash reserves. After all, poor cash flow management is the number one reason businesses fail. But managing corporate cash has historically been a labor-intensive process.

In the past, businesses have struggled to achieve the safety they need for their cash reserves without sacrificing liquidity or returns. Thanks to advanced financial technology – fintech for short – those days are over. With Marketplace Banking™ from the American Deposit Management Co. [ADM], companies can achieve the ultimate safety for their funds along with nationally competitive interest rates and next-day liquidity.

Marketplace Banking™ – A New Way to Manage Business Deposits

Historically, businesses were limited to accessing banking services from the institutions in their area, because they needed to visit a bank branch to deposit funds, apply for loans, and manage their daily banking needs. With few options, companies were forced to accept the rates and protection that their local financial institutions offered.

As technology advanced, businesses gained additional options for meeting their banking needs. Mobile check deposits, online applications, and instantaneous transfers of funds gave firms the option to choose from many banks across the country. With the greater pool of banking options, businesses were gaining access to more competitive rates and a greater ability to split their deposits among several institutions to extend government protection. However, this process remained cumbersome.

With thousands of local banks, national banks, and credit unions to choose from, businesses had to regularly shop for the best deposit rates. In addition, firms with significant cash reserves needed to manage multiple banking relationships to achieve full government protection. Finally, many businesses were hesitant to lose the relationship they had built with their local bank.

Today, ADM’s innovative fintech powers a new deposit management solution that solves the banking problems of the past. With Marketplace Banking™, companies can access the ultimate protection for their funds plus nationally competitive interest rates and next-day liquidity, all with a single account and a single monthly statement.

Benefits of Marketplace Banking™

ADM is not a bank. We are a fintech company and we’ve spent more than a decade cultivating a nationwide network of banks and credit unions. Our platform connects the financial institutions in our network with businesses seeking extended deposit protection and competitive returns. This technology provides the following valuable benefits.

Access to Extended Protection for Business Cash

The FDIC and NCUA provide the ultimate protection for business deposits because they are backed by the full faith and credit of the U.S. government. These government agencies insure deposits up to $250,000 per account ownership category at each member institution. Because these limits are per institution, businesses can spread their deposits among many different banks or credit unions to achieve full protection. However, completing this process manually is labor intensive.

With Marketplace Banking™, our fintech does the work. We divide millions of dollars into insurable pieces and spread them throughout our network. This way, all a business’ cash can be protected by government insurance, without the hassle.

Nationally Competitive Rates

The financial institutions in our network compete for deposits, so businesses have access to nationally competitive returns. In addition, our team actively manages deposits to ensure each of our customers earns a competitive rate.

Interest earned on cash reserves can help businesses reduce the impact of inflation, meet their ongoing monetary needs, and even add to profitability. But many cash management strategies leave money on the table. Since 2021, the average business with $2 million in cash missed 90% of potential returns. With Marketplace Banking™, businesses could have earned an additional $25,154.53 in income.

Liquidity for Any Schedule

Businesses have varying needs for their cash, so we have varying solutions. If money is earmarked for future projects, we can create a CD strategy that maximizes interest over the long-term while ensuring funds mature when needed. If cash is needed in the short-term – or needs to remain accessible just in case – we offer solutions with next-day liquidity. No matter how funds are invested, our customers have access to extended FDIC / NCUA protection and nationally competitive returns.

Easy Reconciliations

With Marketplace Banking™, firms get the benefits of hundreds of banking relationships, without the added work. We also provide a consolidated monthly statement that summarizes holdings and a secure online portal for processing transactions and monitoring daily activity. This way, our customers always know how their funds are working for them.

Enhanced Local Banking Relationships

A local banking relationship can be invaluable for businesses. That’s why Marketplace Banking™ doesn’t replace a firm’s bank, it enhances it. With Marketplace Banking™ companies can rely on their local bank for day-to-day needs, loans, and a personal relationship while ensuring their cash reserves are secure, liquid, and earning a nationally competitive return.

From online banking to mobile check deposits, technology has streamlined business cash flow management. Now, with Marketplace Banking™, firms can harness the power of fintech to manage their cash reserves with ease.

Get Started with Marketplace Banking™ by ADM

Marketplace Banking™ fills a gap in traditional business cash flow management by providing the safety, liquidity, and returns that companies need to effectively manage their cash reserves. It’s easy to get started – all it takes is a simple application and a single deposit. Then, our team of cash management specialists does the rest.

To learn more about how Marketplace Banking™ benefits businesses, use the chat feature at the bottom of the screen or give us a call.

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