Galileo Introduces Deposit Sweep Product for FinTechs

Galileo Financial Technologies has introduced a product that automates deposit sweeps for FinTechs, enabling them to offer more competitive returns and peace of mind to customers whose balances exceed the FDIC insurance limit.

The new Galileo Deposit Sweep facilitates the data exchange and reporting framework for FinTechs that collaborate with a deposit sweep provider and participating banks, the company said in a Tuesday (April 8) press release.

The product identifies customer accounts designated for deposit sweeping, automates funds transfers above a defined threshold, and ensures the transfer of excess funds into designated high-yield accounts, according to the release.

“This solution enables FinTechs to offer better interest rates without increasing operational complexity,” Galileo Chief Product Officer David Feuer said in the release.

Galileo Deposit Sweep integrates with existing systems; ensures compliance with FDIC regulations by maintaining accurate records of deposits, ownership and beneficiaries; and provides participants with clear disclosures of the product’s operations and FDIC coverage, per the release.

The company piloted this product with Bluevine, a business banking platform for small businesses, according to the release.

“Working with Galileo to enable Deposit Sweep was seamless, allowing us to quickly bring the benefits of increased FDIC insurance and higher yields to our customers,” Bluevine Chief Product Officer Herman Man said in the release. “Our business customers rely on us for security and value, and Galileo’s support has been instrumental in enhancing our offerings and delivering on that promise.”

Bank technology is racing to keep up with customer expectations that are being reshaped by real-time processing, data-driven insights and blended financial services, Michael Haney, head of product strategy at Galileo, told PYMNTS in an interview posted in March.

“We’re moving out of this world where financial services exist in these silos,” Haney said. “They want to blend the best of all of these.”

Galileo’s parent company, digital financial services company SoFi, said in October that it adopted Galileo’s cloud-based Cyberbank Core to power a variety of payment services for commercial clients, including debit, prepaid, ACH and wire transactions, and associated banking services.

In September, Galileo introduced a pair of anti-fraud tools for banks, FinTechs and businesses: Galileo Instant Verification Engine (GIVE), which is designed to provide real-time verification of external bank accounts and ownership, and Transaction Risk GScore, a machine learning-based offering that assesses the risk of card transactions in real time.