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ICS Makes It Easy to Court and Retain Valuable Customers

By Steve Kinner

Recently, there have been a number of reports indicating that the days of cheap funding may be coming to an end. 

For example, a recent American Banker article stated, “JPMorgan Chase expects the bank could experience outflows of $100 billion, or about 7.8% of its deposit base.” In the same article, it was noted that “M&T Bank in Buffalo, N.Y., could see deposit runoff of $6 billion, or 8.6% of its base.”

So if your bank hasn’t been securing funding at today’s low rates, then it might be wise to act now, before it’s too late. And, typically, there is no better time to court depositors than when almost no one else wants them yet. But until recently, it hasn’t made much sense to grow deposits if there is nowhere to go with the money.

Fortunately, there is a new service — ICS® One-Way Sell® — that provides a bank with the opportunity to be aggressive about growing its deposit base without increasing its balance sheet or negatively impacting earnings. In other words, a highly liquid bank can use ICS One-Way Sell to attract and retain valuable customer relationships without adding to its balance sheets. Add to that the ability to earn fee income in the process, and a bank can enhance its formula for profitable growth.

And once those relationships are established and as funding needs increase, your bank can convert from using ICS One-Way Sell to ICS® ReciprocalSM, which could be helpful down the line if the institution’s liquidity position changes or loan growth takes off.

ICS is a trusted, tested service that:

  • Is provided by Promontory Interfinancial Network, a company that has more than a dozen years of experience and has developed relationships with thousands of banks across the nation;
  • Carries an exclusive endorsement from the American Bankers Association through its Corporation for American Banking subsidiary; and
  • In its Reciprocal form, can be used in most states for the placement of funds by public units.


ICS One-Way Sell is available to both banks and broker-dealers to provide their customers with easy, convenient access to multi-million-dollar FDIC insurance on deposits and to sell excess funding to other Promontory Network members for fee income. For example, when an institution places a deposit through a One-Way Sell transaction, it can keep the difference between Promontory’s One-Way Sell rate and the rate that institution establishes for its customer’s ICS funds.

On the other hand, if your bank is looking for wholesale, floating-rate funding with a customizable contract to accommodate your bank’s unique needs, Promontory’s other new service, ICS® One-Way Buy® may be just the answer you’re looking for. With it, banks have access to funding that is tied to an index, such as the Fed Funds Effective Rate or LIBOR, over short or long terms — from 3 months to multiple years. Setup is easy. Promontory Network members sign a simple, two-page addendum to the existing ICS agreement. There are no added transaction fees — the all-in cost is the contracted cost — and no collateralization or stock purchase requirements.

Whether your bank is looking to fund loan growth, manage interest rate risk, diversify its funding options, or build in flexibility for the future, ICS can help.

To learn more about ICS One-Way Sell or ICS One-Way Buy, contact Promontory’s Treasury Desk at (866) 776-6426 (option 1, then option 3) or email Treasury_Desk@promnetwork.com.


1 Andy Peters, “Bankers Brace for Deposit Losses as Higher Rates Loom,” American Banker, July 30, 2014.

Use of the ICS service is subject to the terms, conditions, and disclosures set forth in the ICS agreements, including the ICS Participating Institution Agreement and the ICS Deposit Placement Agreement. Limits and customer eligibility criteria apply. Program withdrawals are limited to six per month when using the ICS savings option. If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor's funds through ICS, or a particular ICS transaction, satisfies those restrictions. ICS, One-Way Sell, and One-Way Buy are registered service marks, and Reciprocal is a service mark, of Promontory Interfinancial Network, LLC.