ModernFi uses a simple account structure to facilitate its deposit network.
For institutions wanting to sweep deposits off-balance sheet or reciprocate deposits, a single program omnibus account is opened at the institution to facilitate the sweep. Deposits are swept from this program omnibus account into and out of the network of receiving banks. Specifically, deposits are swept from the program omnibus account to a settlement account at ModernFi's custodian, where they are then allocated to receiving banks.
The program omnibus account consists of numerous subaccounts, which hold funds for depositors in the program. Note, a single depositor can have multiple subaccounts. Subaccounts are funded through internal transfers, where funds are moved from non-program bank accounts, such as a depositor's checking account, into the depositor's subaccount within the program omnibus account.
The program omnibus account structure has numerous benefits, most notably immediate deposits and withdrawals for depositors. It also results in simple ledgering and a transparent program. For further details around account structure and set up, please contact the ModernFi team.