Deposits are the bedrock of our financial system, ensuring that banks have the liquidity needed to make loans and operate effectively. Without deposits, the entire system would be unviable. Despite their critical importance, deposit management has been one of the slowest areas of banking to innovate—until now.
Consumer demands have changed from previous generations. People are more interested in knowing whether the organizations they do business with are at odds with their personal values. That’s prompted banking experts to reexamine the relationship between depositors and banks. They're asking crucial questions about how banks can deliver more value to their depositors by supporting their values and initiatives.
This emerging concept is known as "values-aligned banking." It focuses on creating a better match between depositors and banks, optimizing not only for interest rates and safety but also for alignment on key issues such as community support, diversity initiatives, climate action, and other important causes.
Traditionally, financial institutions and cash management experts have concentrated primarily on interest rates and safety when working with depositors. These factors are undeniably important—great rates and the assurance that your deposits are secure are fundamental to your financial stability. However, in today’s environment, businesses and large depositors need to leverage every opportunity to demonstrate to their constituents — consumers, and other stakeholders — their commitment to enhancing communities and society as a whole.
Ampersand takes a comprehensive approach. We work with our financial institution partners to gain a deep understanding of not only their technical banking operations and commitment to safety and soundness but also their core values and management practices. We work with financial institution partners in a variety of categories, such as:
This ensures we can meet the needs of any depositor when it comes to values-aligned banking, safety, and desired rates.
When we partner with a new depositor, we begin by thoroughly evaluating their unique needs—including their corporate values and the key initiatives they support. We then integrate this information with our proprietary AmpersandIQ™ technology to design a customized program. This program delivers not only best-in-class rates and deposit safety but also a carefully selected set of values-aligned banking partners. These relationships can be communicated to your board, shareholders, and customers, showcasing your commitment to your stated values.
We take this a step further by offering an "impact allocation account." In this setup, all interest earnings are allocated to a secondary account, where they continue to earn a return. These funds are then available for deployment at your discretion to causes you support. For example, want to donate to your favorite foundation? No problem! We facilitate this seamlessly, enabling you to make a meaningful difference without impacting your bottom line.
Values-aligned banking represents a significant shift in how depositors can interact with their banking partners, allowing them to align their financial activities with their broader mission and values. Ampersand is committed to helping you navigate this new landscape, ensuring that your deposits not only work hard for you but also reflect your commitment to making a positive impact for your clients and your organization. By choosing values-aligned banking, you can enhance your financial strategy while contributing to the causes that matter most to you.
Learn how Ampersand can help your organization with values-aligned deposit management strategies. Contact Ampersand to get started.
Ampersand, Inc. is not an FDIC insured bank. Deposit insurance covers the failure of an insured bank.
