Who Does Current Partner With for Banking?
Demystify Current's banking operations. Understand its partnerships with FDIC-insured banks that ensure your deposits are safe and secure.
Understanding Current as a Financial Technology Company
Current operates as a financial technology company, often referred to as a “fintech” or “neobank,” providing mobile banking services to its users. Unlike traditional banks that maintain physical branches, Current primarily delivers its services through a digital platform, accessible via a mobile application. This model allows for a different approach to financial services, focusing on technological innovation and user experience.
Understanding Current’s Operating Model
Current does not hold a federal banking charter itself. Instead, Current develops and manages the customer-facing technology, including its mobile application and various financial features. This approach enables Current to innovate rapidly and offer services designed for a digital-first user base.
The company’s operational design relies on strategic partnerships with established, federally regulated banks to handle the fundamental aspects of banking. This model is common among fintech companies, allowing them to leverage existing banking licenses, adhere to necessary regulatory compliance standards, and provide deposit insurance without the significant overhead of operating as a full-fledged chartered bank.
By focusing on technology and user experience, Current aims to deliver financial services efficiently, often with different fee structures compared to conventional banking. The underlying technology, known as the Current Core, is designed to reduce the costs associated with maintaining customer accounts.
The Bank Behind Current: Partner Institutions and Their Role
To provide its banking services, Current collaborates with specific FDIC-insured institutions. Current partners with Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. These traditional banks are the legal custodians of customer funds, holding the actual bank accounts and managing deposits within the established regulatory framework.
The role of these partner banks extends to providing the essential banking infrastructure, including account and routing numbers that facilitate transactions. For instance, Current has expanded its partnership with Cross River Bank, leading to new and existing users potentially receiving account and routing numbers issued by Cross River Bank.
This collaborative model allows Current to focus on its digital platform and user experience while relying on its banking partners for the regulated handling and safeguarding of customer funds.
How Your Money is Protected with Current
Customer funds held through Current are protected by Federal Deposit Insurance Corporation (FDIC) insurance, which is provided through its partner banks. The FDIC is an independent agency of the U.S. government established to protect depositors’ money in the event of an insured bank’s failure.
This insurance covers deposits up to $250,000 per depositor, per insured bank, for each account ownership category. This means that if an individual has multiple accounts at the same bank but under different ownership categories, such as a single account and a joint account, each category is separately insured up to the $250,000 limit.
The types of accounts covered by FDIC insurance include checking accounts, savings accounts, money market deposit accounts, and certificates of deposit. It is important to note that FDIC insurance does not cover non-deposit investment products, such as stocks, bonds, mutual funds, or cryptocurrencies, even if they are offered through an insured bank.
Current’s arrangement ensures that customer deposits are covered on a “pass-through” basis, meaning the insurance applies to the individual customer’s funds held at the partner bank.