What is a deposit network?

The ModernFi CUSO deposit network is a group of credit unions working together to help one another grow deposits and member relationships. The network is a powerful tool that helps credit unions provide extended insurance to members, source funding, and manage their balance sheets.

Through the network, credit unions can provide accounts with extended deposit insurance beyond the standard $250,000 Standard Maximum Share Insurance Amount set by the NCUA. The accounts work by distributing a member's deposits across multiple insured credit unions within the deposit network, offering extended insurance coverage in excess of $250,000 through a single Insured Sweep Account at your credit union. Normally, when a credit union utilizes the ModernFi network to provide extended insurance, they enter a reciprocal arrangement, where they receive the same amount of deposits back from the network as they have swept in to the network, which ensures they do not lose deposits in aggregate.

Credit unions can also source funding and sweep excess liquidity through the network to manage their balance sheets. Credit unions with excess deposits can put those idle funds to work, sweeping them off their balance sheets to reduce balance sheet size and earn fee income.

Credit unions in need of liquidity can also easily source overnight or term funds on demand to strengthen their balance sheets and sustainably fuel asset growth.

*Insurance provided by program credit unions (subject to certain conditions)