Cambridge Savings Bank Launches Digital Bank to Expand National Reach
Cambridge Savings Bank has launched a digital-only bank called Ivy Bank to help it roll out its services nationwide, the financial institution with $ 5 billion in assets said Thursday.
The Massachusetts-based bank said the platform has been in the works for two years and will aim to compete with other digital-only banks in the market.
âIvy was born out of our desire to meet clients where they are in this changing market environment and provide us with the opportunity to deliver a relationship-centric digital bank with the backing of our historic financial institution,â Wayne Patenaude, chairman and chief executive officer of Cambridge Savings Bank, said in a statement.
Cambridge said a combination of digital services assisted by human-centered support is how Ivy Bank aims to “stand out from the crowd.”
âIvy allows us to combine the best of our heritage as a relationship and customer-centric bank and combine that with a premier digital offering,â said Katie Catlender, Director of Clientele at Cambridge Savings Bank. âBy leveraging a long-standing trusted institution, we’re giving consumers across the country the ability to access their entire financial lifecycle, at their fingertips. People across the country want the opportunity to make their money work to the best of their ability, and our job is to make it as easy, simple, and transparent as possible for people to do. “
Cambridge said the new platform’s money management tool allows customers to view all bank accounts in a single dashboard, including those held at other financial institutions, to view spending by category, establish and manage budgets, manage debt and view net worth.
The bank, which declined to share Ivy Bank’s account count, said customer account openings on the new platform took an average of five minutes.
The digital bank also offers a high yield savings account with an annual percentage return (APY) of 0.61%, which applies to minimum balances of $ 2,500, and a five-year Certificate of Deposit (CD) with an APY of 1% as long as the the opening deposit is $ 1,000 or more.
“With some of the best prices in the market, Ivy will be competitive with other offerings in the market,” said Catlender.
Cambridge Savings Bank is partnering with several fintechs and third-party vendors to launch the platform: MANTL for its account opening process, NCR for account automation and MX for money management capabilities, said Catlender.
As more traditional banks introduce products like overdraft avoidance and early access to paychecks to compete with neobanks and other digital-only businesses, Catlender said Cambridge was considering similar products.
“We intend to continue to innovate and ensure that we make it as easy as possible for consumers to reach their financial well-being goals and anticipate future needs such as avoiding overdrafts, prepayments. and more, âshe said.
Cambridge Savings Bank has 17 branches in the Greater Boston area.