High Circle Partners with FirstBank and Treasury Prime to Launch New Suite of High- Yield Commercial Checking Accounts for High Net-Worth Individuals and Businesses

Rhea-AI Summary

Treasury Prime announces a strategic partnership between FirstBank and High Circle, offering high-yield commercial checking accounts with up to $125M in FDIC insurance and ACH and wire transfer capabilities. High Circle clients can earn up to 4.00% annual percentage yield and access luxury rewards, transforming the financial landscape for affluent and high-net-worth individuals.

Financial Analyst

The strategic partnership between Treasury Prime, FirstBank and High Circle brings a new dimension to the financial services industry, particularly in the niche of banking for high-net-worth individuals and businesses. The introduction of high-yield commercial checking accounts with up to $125M in FDIC insurance is a significant development. This move not only diversifies FirstBank's product offerings but also positions it to capture a larger share of the affluent market segment.

The provision of an annual percentage yield of up to 4.00% is notably competitive, possibly outperforming many traditional savings accounts and even some investment vehicles, which could lead to an influx of capital into these accounts. However, the sustainability of such high yields in the long-term should be scrutinized, as they could impact FirstBank's net interest margin if not managed properly.

Additionally, the luxury rewards program could serve as a differentiator in the market, potentially increasing customer loyalty and deposit activity. However, the costs associated with these rewards must be balanced against the additional revenue anticipated from the new deposits to ensure profitability.

Market Research Analyst

The partnership's unique selling proposition lies in its ability to offer a blend of traditional banking with luxury lifestyle rewards, catering to a specific clientele. The strategy of targeting high-net-worth individuals with tailored financial and lifestyle services is in alignment with current trends where personalization and exclusive experiences are highly valued.

The potential for cross-selling personal banking products in the future suggests a holistic approach to customer financial management, which could lead to a stronger customer relationship and retention. It's important to monitor how this approach is received in the market, as it could set a precedent for other financial institutions looking to innovate in customer engagement.

Understanding the demographic and psychographic characteristics of High Circle's target market will be crucial in evaluating the effectiveness of this strategy. The impact on FirstBank's market share and brand perception as a result of this partnership will also be a key metric to watch.

Economist

The offering of up to $125 million in FDIC insurance through the Intrafi network is a noteworthy feature that may increase the confidence of depositors, particularly in a climate where economic uncertainty can influence banking behaviors. This level of insurance coverage far exceeds the standard FDIC insurance limit, which could reassure clients about the safety of their large deposits.

However, the broader economic implications of such high insurance limits on the financial system's stability should be considered. If many institutions follow suit, it could lead to a concentration of risk. The Federal Deposit Insurance Corporation (FDIC) may need to assess the impact of such products on their insurance fund and the potential systemic risks.

Moreover, the impact of these high-interest accounts on the liquidity and lending capacity of FirstBank should be analyzed, as they could potentially alter the bank's balance sheet and influence its ability to extend credit in the broader economy.

Innovative products include high-yield commercial checking accounts with up to $125M in FDIC insurance and ACH and wire transfer capabilities

SAN FRANCISCO, Jan. 16, 2024 /PRNewswire/ -- Treasury Prime, a leading embedded banking software company, is powering a new strategic partnership between FirstBank, a Tennessee Corporation, Member FDIC, and High Circle, a banking and investment platform, designed to minimize risk and maximize returns for business owners and high-net-worth individuals whose needs are not being met by large traditional banks.

As part of this partnership, High Circle is providing a financial technology platform to provide access to commercial checking accounts issued by FirstBank and up to $125 million FDIC insurance through the Intrafi network. These accounts offer High Circle clients up to $125 million in FDIC-insured coverage, an attractive annual percentage yield of up to 4.00%, and ACH and wire transfer capabilities. Furthermore, clients will be able to access High Circle's rewards program, independent of FirstBank's involvement, to earn incentives based on deposit activity, including discounts on private jets, vacation homes, hotels and resorts, and exclusive events. This blend of FDIC insurance, competitive interest rates, and luxury rewards allows clients to manage and grow their overall wealth securely.

In the coming months, High Circle will unveil additional initiatives in partnership with Treasury Prime and FirstBank, including personal banking products, allowing customers to secure their cash reserves within a unified platform.

"Our mission is to transform the financial landscape for affluent and high-net-worth individuals. By blending traditional banking, investment solutions, and luxury lifestyle experiences, High Circle redefines how they engage with their wealth," said Hemanth Golla, founder and CEO of High Circle. "Our collaboration with FirstBank and Treasury Prime is a significant step towards meeting this market need. Together, we aim to offer tailored, cutting-edge financial services that cater to the unique needs of high-net-worth individuals and businesses. We are excited about the opportunities this partnership brings to redefine excellence in affluent financial management."

"We are excited to partner with Treasury Prime in offering High Circle customers a seamless, secure and innovative way to manage their wealth," said Wade Peery, Chief Innovations Officer of FirstBank. "By leveraging Treasury Prime's technology, we can seamlessly embed bank accounts and provide payment rails within High Circle's platform, all while improving the end- user experience."

Jeff Nowicki, VP of Banking at Treasury Prime, added: "Our multi-bank network is reshaping how fintech collaborations operate, and this partnership is at the forefront of that transformation.

By seamlessly connecting high-quality banking services from FirstBank to platforms like High Circle, we're driving innovation and directly enhancing financial experiences."

For more information about the High Circle Commercial Business Checking Accounts and FDIC Insurance coverage, please visit https://www.joinhighcircle.com/.

About High Circle

High Circle is a forward-thinking financial technology company dedicated to providing innovative financial solutions for high-net-worth individuals. With a deep commitment to excellence and a focus on tailored banking, wealth management, and alternative investment services, High Circle sets the industry standard for affluent financial management. High Circle leverages cutting-edge technology and strategic partnerships to empower clients with the tools and resources they need to maximize their financial potential. For more information, please visithttps://www.joinhighcircle.com/.

About Treasury Prime

Treasury Prime is building the future of finance. Through its cutting-edge embedded banking software, Treasury Prime facilitates seamless connections between banks and enterprise partners, equipping them with everything they need to launch innovative financial products with a strong commitment to responsible practices. Beyond its core banking offerings, which encompass accounts and payment infrastructure, Treasury Prime also provides a robust partner marketplace. This marketplace offers a wide range of auxiliary services, including access to FDIC insurance through the Intrafi network, tailored to meet the diverse needs of bank-fintech partnerships. Treasury Prime was named Best Banking-as-a-Service Platform in the Tearsheet Embedded Awards 2021 and 2022, and was named to CB Insights' annual 2021 Fintech 250 list.

About FirstBank

Nashville-based FirstBank, a wholly owned subsidiary of FB Financial Corporation (NYSE: FBK), is the third largest Tennessee-headquartered bank, with 83 full-service branches across Tennessee, South Central Kentucky, Alabama and North Georgia, and a national mortgage business with offices across the Southeast. The bank serves five of the major metropolitan markets in Tennessee and, with approximately $12.7 billion in total assets, has the resources to provide a comprehensive variety of financial services and products.

Disclosure: High Circle is a financial technology company, not a bank. Banking services are provided by FirstBank, a Tennessee Corporation, Member FDIC.

 

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SOURCE Treasury Prime

What is the strategic partnership announced by Treasury Prime?

Treasury Prime has announced a strategic partnership between FirstBank and High Circle, offering high-yield commercial checking accounts with up to $125M in FDIC insurance and ACH and wire transfer capabilities.

What are the benefits of the commercial checking accounts offered through the partnership?

The commercial checking accounts offer up to $125M in FDIC-insured coverage, an attractive annual percentage yield of up to 4.00%, and ACH and wire transfer capabilities.

What rewards program is available to High Circle clients?

High Circle clients can access a rewards program to earn incentives based on deposit activity, including discounts on private jets, vacation homes, hotels and resorts, and exclusive events.

What additional initiatives are High Circle, Treasury Prime, and FirstBank planning to unveil?

In the coming months, High Circle will unveil additional initiatives in partnership with Treasury Prime and FirstBank, including personal banking products.

Who is the founder and CEO of High Circle?

The founder and CEO of High Circle is Hemanth Golla.