What Bank Does Found Use for Its Business Banking?
Understand how Found delivers secure, FDIC-insured business banking by partnering with a regulated financial institution.
Found offers a specialized financial platform designed to meet the unique needs of small businesses and self-employed individuals. This platform provides a suite of services, including business banking, integrated bookkeeping features, and tax tools. By combining these functionalities, Found aims to simplify financial management for independent workers and small enterprises.
The Partner Bank
Found operates as a financial technology company, not a traditional bank. To provide banking services and ensure the safety of customer deposits, Found partners with regulated, FDIC-insured institutions. Customer funds held in Found accounts are maintained by either Piermont Bank or Lead Bank. This partnership ensures deposits are protected by the Federal Deposit Insurance Corporation (FDIC).
How Found Operates
Found’s operational model involves collaboration between financial technology companies and traditional banking institutions. Found provides the user-facing technology and integrated tools, while its partner banks handle the underlying regulated banking services. This arrangement allows Found to offer a streamlined digital experience, including features like automatic expense categorization and real-time tax estimates, without operating as a full-fledged bank.
This type of partnership, often referred to as Banking-as-a-Service (BaaS), enables FinTech companies to deliver innovative financial products. The model benefits users by combining the technological advancements and user-friendly interfaces of FinTech platforms with the regulatory compliance and deposit insurance provided by established banks. It allows for integrated financial management, often at competitive fee structures, while ensuring funds are held securely by an FDIC-insured entity.
Safeguarding Your Funds
Protecting user funds and sensitive data is a primary concern for financial platforms like Found. A significant layer of protection comes from FDIC insurance, which covers deposits up to $250,000 per depositor, per ownership category, through its partner banks.
Beyond federal deposit insurance, Found implements several security measures to protect user information and transactions. Data is encrypted at rest using Advanced Encryption Standards (AES256), and the platform operates on a secure cloud infrastructure. To prevent unauthorized access, multi-factor authentication (MFA) is employed, requiring users to provide multiple forms of verification, such as fingerprints or facial patterns, for sensitive account actions. Found also utilizes 24/7 fraud monitoring to detect and alert users and compliance teams about suspicious activity, ensuring the integrity of financial transactions.