Deposit Sweep Management in Banking: Modern Cash Strategy

Deposit sweep management has long played a role in treasury management, but its function has taken on new significance in the age of digital finance. As fintechs, neobanks, and embedded finance platforms reshape the financial landscape, deposit sweep relationships are evolving from a niche banking tool into a foundational infrastructure component.

Today, managing cash efficiently and securely isn’t just a back-office task. It’s a growth strategy. Deposit networks are stepping in to help non-bank platforms access the deposit sweepfunctionality they need to protect customer funds and maintain liquidity. These modern solutions can deliver automated cash management at scale.

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What Is Deposit Sweep Management?

Deposit sweep automatically moves excess funds between a primary account and secondary accounts to optimize liquidity, yield, or insurance coverage.

Traditionally, banks have used sweeps to:

• Maximize returns by moving idle cash into interest-bearing accounts overnight

• Place deposits at multiple FDIC-insured banks to enhance protection of customer funds.

• Ensure that operating accounts are kept at target balances

There are ways to manage deposits, including:

• Interest-bearing sweep accounts, which generate returns on excess funds

• Sweeping customer funds and allocating among participating FDIC-insured partner banksto help protect customer deposits

Sweep accounts must operate within a well-defined framework, especially when used by non-bank financial platforms. Risk management requirements may include custodial safeguards, disclosure obligations, and close coordination with partner banks or custodians.

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How Fintechs and Neobanks Use Deposit Sweep Management in Banking

The shift from traditional banking to tech-driven platforms has fundamentally changed how money moves. Fintech apps, digital-first neobanks, and embedded finance solutions built into SaaS platforms are now managing the flow of funds outside the walls of traditional financial institutions.

Cambr partners with a wide range of these innovators to deliver deposit infrastructure that can grow with them. These platforms are holding increasing amounts of consumer and business cash, and modern deposit management solutions like Cambr Sweep^SM and Cambr Wholesale^SM help manage those balances securely and efficiently.

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Growth Benefits of Deposit Sweep Management

Deposit sweep management solves several key challenges for partner banks, fintechs and embedded finance platforms:

• Liquidity management: Keeping funds accessible while ensuring that cash is being put to productive use, either through yield-generating opportunities or insured protection.

• Risk mitigation: Distributing funds across multiple banks to expand FDIC insurance coverage, reducing over-reliance on any single institution.

• Operational efficiency: Supporting automated cash management, reducing the need for manual treasury operations and lowering operational risk.

• Regulatory alignment: By offering clear custodial structures and traceable fund flows, helping platforms align with complex regulatory requirements.

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Building Scalable Deposit Sweep Infrastructure with Deposit Networks

Fintechs and embedded finance platforms often lack the resources or regulatory standing to establish dozens of bank relationships. That’s where deposit networks come in.

Cambr connects platforms to a network of banks, allowing them to access scalable sweep account infrastructure without the complexity of building it themselves.

Benefits include:

• Instant scalability: Grow deposit capacity alongside customer demand

• Diversified bank relationships: Reduce risk with redundant connections

• Visibility and reporting: Get instant insights into fund movements

• Simplified integration: Leverage a proven operational model, and avoid building one from scratch

For example, a neobank using Cambr’s deposit network can seamlessly route customer deposits into multiple banks, automate fund distribution, and maintain FDIC coverage without ever handling the complexity behind the scenes.

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As fintechs and embedded finance platforms continue to expand, they need access to tools that combine liquidity, security, and scalability.

By powering automated cash management through a connected network of financial institutions, platforms can focus on growth, knowing their customers’ funds are secure and working efficiently behind the scenes.

Ready to modernize your treasury infrastructure? Cambr can help. Our deposit network supports scalable sweep accounts and automated cash management strategies tailored to your platform’s needs.

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