Cross River Introduces Service to Access FDIC Insurance Coverage on Large Deposits via Automated Sweeps

Cross River Bank, a technology infrastructure provider that offers embedded financial solutions, announced the launch of its automated sweep feature using the IntraFi Cash Service.

The capability will enable Cross River’s Banking-as-a-Service (BaaS) clients to access millions in aggregate FDIC insurance coverage “across network banks for their end customers, providing a seamless, automated solution for managing large deposits.”

Through an API-enabled integration with Cross River’s banking core (COS), BaaS clients can now “access this differentiated feature and offer end customers the ability to sweep their excess funds into IntraFi® network banks within its extensive network.”

This feature allows BaaS clients to access millions in aggregate FDIC insurance coverage (per ownership category) across “network banks while also reducing the administrative burden of manually distributing funds across multiple institutions.”

Adam Goller, EVP and Head of Fintech Banking at Cross River, said:

“Cross River is committed to providing our clients with the tools they need to stay ahead in an evolving financial landscape. Integrating an automated sweep feature from IntraFi directly into our offerings via APIs underscores the distinct value of our capability, enabling our clients to better serve their customers with greater peace of mind.”

The automated sweep feature provides a seamless experience for BaaS clients by allowing them to “embed the feature into existing financial platforms via Cross River’s APIs while enabling end customers the opportunity to protect large deposits by accessing FDIC insurance coverage across multiple banks (subject to applicable limitations).”

Particularly valuable for fintechs that hold large-balance customer funds with Cross River or process large-volume transactions, the automated sweep feature is designed to “make these funds eligible for the protection of FDIC insurance while allowing their customers to access their deposits.”

End customers will be able to view proposed deposit placements, exclude banks where they have previously established relationships, and “maintain access to their funds while continuing to earn interest on their deposits.”

Cross River claims that it continues to lead the way in providing innovative solutions that enable its clients to deliver “robust and responsible financial services.”

The launch of the feature is said to be a testament to the company’s ongoing commitment to enhancing the “flexibility, security and efficiency of its banking infrastructure.”



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