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Insights
Product Announcement
Introducing Term Funding: ModernFi Launches New Product as Fed's BTFP Winds Down
To support funding and liquidity needs, ModernFi is pleased to announce the introduction of Term Funding to its platform. Banks and credit unions can now source cost-effective term funding on demand with simple order execution and seamless order management.
March 12, 2024
With the wind down of the Federal Reserve’s Bank Term Funding Program this week, liquidity and funding remain top of mind for banks and credit unions. The current interest rate regime and events in the banking sector over the past year have led to aggressive deposit runoff and increased competition for deposits.
Throughout the period, the ModernFi team has endeavored to act as a trusted solution for deposit growth, retention, and management for its FI partners. Responding to requests and built alongside pilot partners, ModernFi is pleased to announce the introduction of Term Funding to its platform, allowing any bank or credit union to seamlessly order and manage cost-effective term funding on demand.
ModernFi’s Term Funding product lives within the ModernFi portal, and funding is provided in the form of brokered CD issuance through ModernFi’s premier network of deposit broker partners. ModernFi Term Funding simplifies the funding process, empowering your team to make informed funding decisions and impressively manage your existing issuance. The deposits provided generally cannot be withdrawn early, making them a stable and reliable option for your liquidity needs. With clarity into the market and powerful order management tooling, ModernFi Term Funding allows for strategic and tactical balance sheet management.
ModernFi Term Funding is a complete, end-to-end solution that assists with:
- Funding management
- Price discovery
- Order execution
- Order management
To get a demo or learn more, please reach out to the ModernFi team today. We would love to help with your funding needs and support your next chapter of growth.
Funding Management
ModernFi Term Funding seamlessly tracks your issued CDs, whether they were issued with ModernFi or through other channels, to provide your team with a command and control center for your active funding. A maturity schedule is provided for active CDs to keep you on top of upcoming payments and liquidity needs. All your active and matured CDs are kept in one place for simple management, along with their respective documentation including terms agreements and master settlement reports. No more digging through emails to find your pdfs.
Price Discovery
To assist with the order process and to support cost-effective funding, ModernFi provides a wealth of market data to help you make informed pricing decisions. A range of rate curves are provided to help you understand both current pricing in market and benchmark rates, such as U.S. Treasurys and FHLB Advances. ModernFi also provides a snapshot of market issues to highlight recent activity and pricing. Taken together, ModernFi empowers you to make the best funding decisions for your institution given market conditions.
Order Execution
You can now order term funding on demand with a few clicks of a button. Request funding through the portal, specifying amounts, terms, and other conditions. ModernFi connects you to its premier network of deposit brokers behind the scenes to fill your order through brokered CD issuance. ModernFi is fortunate to work with brokers that have decades of experience and market acumen, all working for your benefit. While we’re always a phone call away, you can now efficiently and quickly request rates and funding (it even works on mobile).
Order Management
ModernFi Term Funding provides complete transparency into your outstanding orders, providing up-to-date order fill to keep you in the loop. You can track your progress in real time and can even request early close if you’re not hitting your targets. All your documents, including terms agreements, are seamlessly embedded into the portal to keep you organized, even if you have hundreds of orders outstanding.
Since its inception, ModernFi has been fully focused on helping financial institutions of all sizes grow, retain, and manage their deposits. The team is pleased to continue on that mission with the release of ModernFi Term Funding. This release is a direct response to partner requests, who have been looking for new cost-effective, reliable, and transparent funding sources.
The ModernFi team would love to help your institution navigate the current funding landscape and continue your growth. Get in touch today to have a conversation and learn more.
Best,
The ModernFi Team
Disclosures:
All information contained herein is for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Past performance does not guarantee future results. The information contained herein is for institutional use only.
ModernFi Advisers LLC (ModernFi) is not a bank, nor does it offer bank deposits and its services are not guaranteed or insured by the FDIC; ModernFi allocates funds to banks that are FDIC members.
Certain information contained herein has been obtained from third party sources and such information has not been independently verified by ModernFi. No representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by ModernFi or any other person. While such sources are believed to be reliable, ModernFi does not assume any responsibility for the accuracy or completeness of such information. ModernFi does not undertake any obligation to update the information contained herein as of any future date.
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Except where otherwise indicated, the information contained in this communication is based on matters as they exist as of the date of preparation of such material and not as of the date of distribution or any future date. Recipients should not rely on this material in making any future investment decision.