Using Diversity as the Medium to Optimize Your Banking Operation

Centime, a Boston-based fintech that offers comprehensive cash management and banking solutions to small- to midsize-businesses (SMBs), has officially announced a partnership with FNBO (First National Bank of Omaha) to launch a new banking product, which will help businesses take control of their cash, protect deposits, and maximize return.  To understand the significance of such a development, we must acknowledge the results of a survey done by Centime, a survey where it interviewed CFOs and found that over 95% of SMBs have cash at risk above the $250,000 FDIC limit. Furthermore, three out of four CFOs said they were considering diversifying their deposits to mitigate the risk of bank failure. However, despite the clear willingness, majority of them also expressed concerns with the inconvenience of diversifying their deposits and reconciling across multiple accounts. Fortunately enough, Centime’s latest brainchild is out to address that very concern. Talk about how it will do so, the answer begins from its ability to provide multi-bank account aggregation. This feature makes it possible for users to view all their bank accounts and financial institution relationships in a single, integrated dashboard, and therefore, gain complete visibility across all their cash assets and liabilities. Next up, we must get into the solution’s knowhow in the context of cross-bank and account-to-account transfers. This knowhow gives customers the flexibility to transfer cash between accounts and across banks without having to deal with costly wire fees and tedious bank-specific procedures. Then, there is the prospect of high-yield checking. Here, you basically get a Centime Checking Plus solution to provide a fully liquid, high-yield checking account that offers high returns with unlimited transactions. Apart from it, the stated solution also eliminates for you all the restrictions that are usually attached to traditional high-yield money market accounts.

“CFOs have also told us that manual account diversification by opening new accounts at multiple banks is tedious and difficult to operationalize. At the same time, every business seeks higher yield on their operating accounts, instant liquidity, unrestricted use, and maximum protection against risks. That’s why we’re proud to introduce a product that not only automatically diversifies deposits, but also delivers high-yield checking, and provides greater line-of-sight across all your banking relationships,” said BC Krishna, CEO and founder of Centime.

Hold on, we still have a few bits left to unpack, considering we still haven’t discussed the solution’s pledge to offer automated account diversification. You see, powered by Centime Checking Plus, users can automatically diversify deposits and get access to multi-million-dollar FDIC insurance coverage. They can also bypass the inconvenience of opening and managing new accounts and banking relationships in order to protect their funds beyond the $250,000 FDIC limit. Rounding up highlights is a set of fraud protection capabilities that keeps users’ deposits safe from any electronic payment fraud. On top of it, it also provides coverage of up to $100,000 per incident, subject to coverage limitations and terms.

Making the whole development all the more important is FNBO’s 166-year long experience in banking, along with the $30 billion worth of assets it currently has under management.

“Businesses are looking for convenient ways to protect their deposits beyond the $250,000 FDIC limit,” said Carrie Zoucha, Vice President of Commercial Payments at FNBO. “With Centime, we’re able to automate that experience for our customers, supported by the stability of the bank.”