Innovest Systems and Reich & Tang today announced that they have partnered to offer an FDIC insured cash solution to Innovest’s client base. Reich & Tang administers the Demand Deposit MarketplaceSM (DDM) program which will be offered to all of Innovest’s clients on its trust and wealth management platform.
DDM is an automated, daily cash sweep solution that enables investors to achieve millions of dollars in FDIC insurance while maintaining daily liquidity. The program automatically allocates investor deposits among several banks participating in the program wherein the deposits never exceed the maximum FDIC coverage of $250,000 per bank per tax identification number.
“At Innovest, we strive to empower our clients to invest customer assets more effectively,” says Glenn Schmidt, chief executive officer of Innovest Systems. “By seamlessly offering Reich & Tang’s Demand Deposit Marketplace program, our clients will have access to a market leading FDIC-insured cash sweep option for up to $25 million per customer to safely minimize risks and potentially increase returns on their cash investments.”
“We are very excited to partner with Innovest as an important milestone in Reich & Tang’s mission to provide FDIC insured turn-key solutions to trust and wealth managers. With a dedicated on-boarding team,” says Michael Lydon, chief executive officer of Reich & Tang, “we pride ourselves on our ability to implement DDM smoothly for Innovest’s clients with a straightforward contract, thorough due diligence procedures to facilitate vendor reviews, and client-focused training.”
Innovest is a leading provider of financial technology solutions delivered to forward-thinking trust, wealth management, family office, and retirement professionals. Innovest's solutions empower its clients to acquire new customers, invest assets effectively, manage portfolios efficiently, and flexibly report results to customers. Innovest has over $500 billion in assets under administration on its trust and wealth management platform, posts over 4 million unique asset transactions per year, processes more than 6 million payments annually and provides fulfillment services for more than 10 million documents, including checks, advices, and tax forms each year.
About Reich & Tang
Since 1974, Reich & Tang has been offering innovative deposit and liquidity solutions to financial intermediaries and public and private investment entities. The firm is focused on creating, improving, and delivering smarter ideas to help banks, brokerages, trust managers, RIAs, and public and private sector clients to seamlessly integrate and maximize the value of their deposit, liquidity, and short-term investment programs. This singular focus across multiple business lines combines to form a unique perspective and expertise that provides a deeper insight into the multiple disciplines of cash management.