Silicon Valley Fintech Unicorn Brex, the company that’s “reimagining” financial systems for growing businesses, revealed on July 22, 2020, that it has introduced new features and FDIC insurance on its zero-commission cash management account, Brex Cash.
As mentioned in a release shared with CI:
“These [enhanced features have been added] … after many months of regulatory and technological investment that enable a robust, lightning fast experience for customers looking to access business banking services in today’s virtual environment.”
Brex Cash had only been available through invites since October 2019. All eligible customers will now be able to hold funds in cash with FDIC insurance. They’ll also have the option of investing in and earning returns via Money Market Funds.
Brex Cash allows its customers to conveniently store and access their funds, Henrique Dubugras, co-founder and co-CEO at Brex, explained.
“With today’s uncertain economic and interest rate environment, offering our customers flexibility on how to store their cash is a powerful added benefit.”
The announcement noted that the structure enabling FDIC insurance on “uninvested cash reserves” up to $250,000 is being offered through a partnership with UMB Bank.
Doug Pagilaro, SVP at executive director of the FDIC Sweep program at UMB, remarked:
“We’re thrilled to be a part of this next exciting phase of Brex Cash, giving Brex the ability to offer their customers same day liquidity with principal protection and FDIC insurance.”
Businesses can quickly be approved for corporate cards and may easily open a Brex Cash account. The fully digital application allows customers to create accounts within minutes.
The Brex team claims that their platform can approve most, or over 50%, of new customers within 1 business day, meanwhile, business banking incumbents may take several days or even weeks to approve applications.
The release noted:
“Once approved, businesses can run their banking and payment workflows entirely online through Cash, including through the mobile app. Additionally, two-factor authentication and optional approvals on every transaction are powerful features for customers looking for tight internal controls. Zero account or transaction fees, free wire transfers, and a seamless user interface have been core to the product since launch.”
Justin Wenig, CEO and co-founder at Coursedog, stated that we need faster and more reliable banking workflows. Wenig explained that these features are essential for all growing businesses, especially in today’s fast-paced corporate environment,
“We were initially drawn to Brex Cash by the zero fees and slick user interface. With the business environment changing so much this year, the roll out of additional features like FDIC insurance and 2FA underscore Brex’s continued commitment to customer trust.”
Brex’s management confirmed that they’ve hired Katie Biber as the company’s Chief Legal Officer. Biber will have legal and compliance oversight of Brex’s business operations at large, which will reportedly include the firm’s broker-dealer, Brex Treasury LLC.