- Galileo launched Deposit Sweep to help fintechs extend FDIC insurance protection and offer higher interest earnings by partnering with a network of banks.
- The tool automates the movement of funds across banks once a balance hits a set threshold to maximize interest earnings and secure more funds.
- The launch of Deposit Sweep comes in response to rising concerns around deposit safety post-Silicon Valley Bank collapse, helping fintechs protect customer funds beyond the traditional $250,000 limit.
SoFi-owned Galileo unveiled a new tool today called Deposit Sweep, designed to help fintechs and their sponsor banks offer customers extended FDIC insurance protection beyond the $250,000 limit. The tool makes it easier for fintechs to safeguard deposits beyond the traditional coverage limit while helping customers earn more interest on their balances.
Deposit Sweep connects fintechs with a network of participating banks through a leading deposit sweep provider. It enables them to select partner banks based on factors like pricing, regulatory requirements, operational needs, and interest rates, which can offer customers a secure, streamlined way to protect and grow their funds.
“Galileo Deposit Sweep empowers fintechs to deliver more competitive returns for their customers by leveraging a network of participating banks and a deposit sweep provider,” said David Feuer, CPO at Galileo. “This solution enables fintechs to offer better interest rates without increasing operational complexity.”
Deposit Sweep can be easily integrated with a customer’s existing systems, and it can automate the movement of funds once the balance reaches a predefined threshold. Fintechs can offer Deposit Sweep as an opt-in service or automatically enroll all accountholders, who will still be able to view their full balances while funds and interest earnings transfer seamlessly in the background.
Founded in 2001, Galileo offers a payment processing platform that allows third-party fintechs and businesses to build and scale their own financial services offerings. The company, which was acquired by SoFi in 2020 in a $1.2 billion deal, powers a range of fintech and banking solutions, including digital banking, credit and debit card issuing, and money movement services. With the addition of Deposit Sweep, Galileo is further expanding its suite of products designed to help fintechs deliver more secure, competitive, and customer-friendly financial experiences.
Among Galileo’s customers is business banking platform Bluevine, which is currently piloting Deposit Sweep. “Working with Galileo to enable Deposit Sweep was seamless, allowing us to quickly bring the benefits of increased FDIC insurance and higher returns to our customers,” said Bluevine CPO Herman Man. “Our business customers rely on us for security and value, and Galileo’s support has been instrumental in enhancing our offerings and delivering on that promise.”
The launch of Deposit Sweep comes at a time when deposit security is top of mind for fintechs and their customers. The collapse of Silicon Valley Bank in 2023 highlighted the risks of holding large, uninsured deposits at a single institution. By making it easier to spread funds across multiple banks and extend FDIC coverage, Galileo’s Deposit Sweep addresses a key lesson from the Silicon Valley Bank fallout. Many fintechs learned that ensuring that customer funds is protected beyond traditional insurance limits is no longer just a value-add, but a necessity.
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