OneKey to Unlock Universal Access to a Vast Bank Network
What is OneKey Banking?
OneKey Banking, Treasury Prime’s new interconnected multibank product, was developed with safety and scalability in mind. OneKey Banking allows customers to access and leverage multiple bank partners in the Treasury Prime ecosystem using just one technology layer. This means that as companies scale, they can seamlessly add bank partners to access additional features, manage deposit capacity, or establish redundancies. OneKey allows for Network Transfers, which are a proprietary method of funds movement that enables instant cross-bank transfers, which effectively transforms Treasury Prime’s partner banks into a true API bank network.
Practically speaking, this means that you may be interacting with multiple banks, but you only have to manage one ledger, even if they are moving money from one bank to another.
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Treasury Prime’s CEO Chris Dean and Chief Operations Officer Remy Carole talk about OneKey’s features:
Access the largest banking network = redundancy and scalability
The sudden failure of Silicon Valley Bank demonstrated the potential negative impact a bank failure can have on businesses, their employees, retail depositors, and the greater American financial system. Thankfully, no deposits were lost, but the episode served as a crystal ball, providing a preview of what might happen in a financial system where banks operate as islands and most commercial depositors lack sufficient redundancies.
The lesson to be learned in all of this is that companies need to mitigate these risks by avoiding a single point of failure, believes Treasury Prime CEO Chris Dean. “It’s extremely important to create bank redundancies to avoid any potential outages that could impact your business operations,” he advises.
Because OneKey connects you to multiple bank partners, you can reduce the risk of that single point of failure by establishing redundancies and seamlessly transferring funds from bank to bank. In addition, OneKey helps you maintain business continuity, should you ever need to transition to a new financial institution.
Leverage first-of-its-kind Network Transfers
Network Transfers are a proprietary and instantaneous method that enables the movement of funds between banks and allows for the interplay between banks within Treasury Prime’s true bank network.
OneKey unlocks interconnectivity within Treasury Prime’s true bank network. An enterprise can leverage a single technology layer regardless of whether the solution under the hood is simple or extremely complex; real-time reconciliation helps to maintain the accuracy of the single ledger.
Other BaaS companies may work with multiple banks, but without a method of seamless funds movement like Network Transfers, they may not be truly interconnected, requiring the enterprise to manage multiple technology layers should they opt to work with more than one bank.
If a company were to develop a product with multiple banks without OneKey Banking, that company would need to manage a discrete technology layer for each bank and would need to force cohesion across these programs by rebalancing and reconciling funds for each additional bank partner.
By contrast, as a OneKey Banking customer, your bank accounts are interconnected, meaning your user experience is the same whether you’re managing one bank partnership or ten bank partnerships. You can manage all bank partnerships with a single ledger and move funds instantaneously between banks.
How can OneKey benefit your business?
OneKey Banking unlocks the power of Treasury Prime’s bank network, enabling you to protect your business and build previously cost- and effort-prohibitive products. Here are just a few ways OneKey Banking can benefit your business:
1. Create redundancies
With all the news about increased regulatory scrutiny of bank-fintech partnerships, it’s only natural to worry about over-concentrating your product and deposit risk at a singular financial institution. OneKey allows you to optimize banking products and services across multiple bank partners. In many ways, OneKey enables business continuity planning for products like card programs and deposit products that are inextricably linked to a particular bank partner by allowing for redundancy.
With OneKey, you can set up a secondary bank as a backstop to create stability and security in times of uncertainty. This might mean maintaining a clone of your program at another bank or splitting deposits among multiple banks. If you need to transition to a new bank you can quickly and seamlessly do so without any interruption to business.
2. Access more features
A problem you might be facing is finding a bank partner that supports the entire range of features you want to offer in your product. There are a limited number of banks that are fully able to support BaaS programs today. While a few banks can cover many of the requisite products companies need, most banks are still developing their BaaS capabilities. OneKey allows enterprises to access all the features they need while giving banks the opportunity to participate while building out other aspects of their BaaS program.
Maybe you already have a bank partner whose feature you’re outgrowing. Instead of finding another bank partner that you will outgrow again, forcing you to rip and replace repeatedly, OneKey gives you access to Treasury Prime’s entire bank network, so you can always find additional partners to create new products as you scale with the same API, without having to start from scratch each time.
Here’s how it works: let’s say you started your embedded banking journey with one bank in the Treasury Prime network. After a successful launch, you decide to expand your product offering. Your current bank, however, does not support the new feature. OneKey banking enables you to bring in another Treasury Prime banking partner to support said feature and optimize pricing among multiple banks.
3. Manage deposits
One of the issues tech companies face is potentially outgrowing your bank’s deposit capacity. While smaller banks want to grow — they often want to do so at their own pace. For fast-growing tech companies with large deposit volumes, that can be a problem and they may be asked to pause their program or leave their bank partner.
OneKey resolves this problem. It enables you to simply add bank partners to spread out your deposits, providing a much easier transition should your bank partner ask you to offboard, which reduces your overall risk.
OneKey Banking is not a deposit network
One thing to note is that OneKey Banking is not a deposit sweeps product (read more about how Treasury Prime, in partnership with network banks, can provide customers with Enhanced FDIC Insurance here). While a deposit sweeps product is designed to maximize FDIC protection of funds, sweeping them across a deposit network at a specified cadence, OneKey Banking enables enterprises to establish multiple direct bank partnerships for purposes including, but not limited to, the use cases mentioned above: redundancy, feature access, and deposit management.
OneKey Banking and Enhanced FDIC Insurance are designed to work in tandem to provide maximum protection of funds and embedded banking programs. OneKey enables you to establish redundancies and instantly transfer funds between banks, and Enhanced FDIC Insurance enables you to protect each end user account up to tens of millions of dollars.
With Treasury Prime and OneKey, you have a BaaS partner that is ready to scale with you.
Have questions about OneKey and want to learn more? Watch our on-demand OneKey webinar now.