Deposit insurance and safeguarding protect your money in two different ways, and treating them as the same thing is how a business ends up with a false idea of where it stands. Deposit insurance is a government-backed guarantee that pays out up to a set limit if a bank fails. Safeguarding is a rule that keeps client funds separate from a company's own money and out of its lending book entirely.
Fasset Business is a technology platform, not a bank. Client funds are held at licensed third-party institutions, separately from Fasset's own money. That sentence is doing a lot of work, so this guide takes it apart.
What this guide will cover
- What deposit insurance covers, and the limits that apply market by market
- What safeguarding means in practice: separate accounts, separate ledgers, no lending
- Why a technology platform cannot offer deposit insurance and should not imply it
- What happens to safeguarded funds if the platform itself fails
- What happens if the licensed institution holding them fails
- Reconciliation: how often client balances are checked against the accounts behind them
- The questions to ask any provider, and the answers that should worry you
- Where Fasset client funds sit today
The full guide ships soon. Meanwhile the product is live, and the application runs entirely online.