Shockwaves continue to reverberate from the collapse of Silicon Valley Bank and Signature Bank, and more recently, the unsteady footing of First Republic Bank and Credit Suisse. A cautious public now eyes the stability of the infrastructure that underpins financial services and questions how irresponsible decision-making and risk management can create turmoil for depositors. So, it’s important to understand a few critical elements that can make the difference between risk and security.
At Alviere, we’ve made compliance and risk management a core priority since the company was founded.
Our enterprise clients can continue to be confident that the company is on solid financial footing and all operations have been vetted and approved by regulators as part of Alviere’s regulatory licensing process. Alviere is a licensed and regulated entity who has been vetted and is supervised by banking agencies across 51 U.S. states and territories, Canada, and a thorough account of the company’s state and federal licenses is always publicly available here.
With a global regulatory framework and commitment to compliance, Alviere clients’ funds are safeguarded in the following ways:
Customer funds held with Alviere are protected by passthrough Federal Deposit Insurance Corporation (FDIC) insurance provided by our bank partners. In an effort to further protect those assets, enterprise programs with a large deposit base will leverage a diversification and risk mitigation strategy that ensures 100 percent of deposits held with Alviere are FDIC-insured and held across a portfolio of banks.
Alviere only works with bank partners that maintain healthy balance sheets. As part of our third-party risk management protocol, we monitor this quarterly, and also took specific action in March 2023 to confirm our primary U.S. bank partner was on solid footing. As of this writing, our bank partner’s liquidity position is far in excess of those required under any regulatory measure, with 68 percent of total deposits currently held in cash deposits with the Federal Reserve and they maintain long-standing rigor to conservative credit underwriting.
Alviere provides an additional layer of protection to customer funds as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) registration and money transmission licenses in all U.S. States and Puerto Rico. The successful completion of the five-year process to obtain state licensing set a new standard of excellence and reliability for the embedded finance sector.
To maintain our money transmission licenses in good standing, Alviere must also maintain Surety Bonds at the State level with Tier 1 insurance companies. This reinforces Alviere’s promise to clients that your funds held with Alviere are backed and protected.
Safety, flexibility, and long-term viability for enterprise organizations that launch financial services programs is paramount. Recent headlines may call into question the stability of traditional financial institutions, the fintech sector, and embedded finance, but it also presents an opportunity to open a dialogue with your providers and partners. We recently compiled key considerations when selecting an embedded finance provider as a resource for non-financial organizations evaluating the capabilities and credibility of a potential partner.
The security and assurance that Alviere provides as a licensed money transmitter is unmatched in the embedded finance industry and uniquely positions our expert team to guide organizations on the risks associated with money movement. Securing your organization’s funds and that of your customers, partners, and employees is of the utmost importance to our team and the infrastructure and sound practices ingrained in Alviere ensure all enterprises we support can deliver safe, trusted, and lasting financial services.