Promontory Interfinancial Network: Bringing Financial Institutions Together to Unleash

Charles “Duffy” Mees, CIO, Promontory Interfinancial NetworkCharles “Duffy” Mees, CIO
Ask what’s keeping the banking institution service providers and their CFOs and CIOs on their toes, and they will likely list data breaches and compliance issues as their major concerns. These companies expend a lot of resources fortifying cyber security to stay one step ahead of the constant barrage of threats to their IT infrastructure. One such threat was the ‘Heartbleed Vulnerability’ that could potentially expose confidential user information and put the credibility of financial organizations at dire risk.

“Many financial service technology companies find it a daunting task to keep up with these threats because they may have numerous environments to maintain, such as development, testing, and production environments,” says Charles “Duffy” Mees, CIO, Promontory Interfinancial Network, LLC.

And with the enactment of new regulations, along with guidelines and mandates from regulators, the compliance burden is growing faster than ever before. Valuable resources are being redirected to address this ever-growing burden and away from the core focus of business innovation. Headquartered in Arlington, VA, Promontory provides services to financial institutions to help them benefit from the ‘power of many’—a network of literally thousands of banks across the U.S. that can leverage Promontory’s services to do things, such as providing each member banks’ business, government, nonprofit, and individual customers with access to multi-million-dollar FDIC insurance through one bank relationship. Since its inception in 2002, the company has created a network of nearly 3,000 small and large financial institutions.

“We work diligently towards automating the development, testing, and deployment processes to eclipse the threats on IT,” adds Duffy. For its bank clientele, Promontory provides solutions, such as ICS, or the Insured Cash Sweep service; CDARS, or the Certificate of Deposit Account Registry Service; Bank Assetpoint; Residential Mortgage Network; IND; and Yankee Sweep.

We work diligently towards automating the development and testing processes to eclipse the threats on IT

These solutions help financial institutions to build profitable relationships, manage liquidity, purchase funding, and buy and sell bank assets.

“Banks can use ICS and CDARS to help customers safeguard their deposits and, in doing so, can repurpose funds previously invested in collateral into higher-earning assets,” says Duffy. This helps organizations to build ‘large-dollar’ relationships and franchise value, which allows them to access a cheaper source of funding to support their other initiatives. “And ICS and CDARS can also enable a bank to access wholesale funding without collateralization or stock purchase requirements,” says Duffy.

Promontory also offers the Bank Assetpoint service, which includes a state-of-the-art, online platform designed to provide a streamlined, transparent, secure marketplace to post or view loan, loan pool, loan participation, and commercial real estate assets. With more than 11,000 participants (including over 1,300 banks) and featuring thousands of local, regional, and national asset listings, Bank Asset-point is a vibrant marketplace.

Since its founding, Promontory continues to build on “the power of many” principle in order to help make its services reliable and efficient. “Our priority is to give the best user experience to the thousands of banks in our network by working to make our services secure and easy to deploy,” says Duffy. Elaborating on the differentiating factors, he added, “We have established ourselves as a service provider that our Network members can trust.”

Also, Promontory’s innovation lab has allowed it to efficiently develop virtualization and cloud deployments and reduce the time of project completion. Promontory’s current services and future plans all have security at their center.