The Silicon Review
There is great potential for corporations to increase financial performance by optimizing their cash flow forecasting. During the financial crisis, corporations learned, some the hard way, the value of placing more emphasis on effective cash and liquidity management. In times when the banks became increasingly restrictive in their lending policies in providing cash to corporations for smoothing any gaps in their cash flow curve or for investing in business development, corporations instead had to turn to their own resources and eke out every free penny. In order to mobilize their own resources, corporations need to have reliable data representing their actual and expected cash position. Thus, if companies achieve greater efficiency in their accounts receivable and payable processing, they are laying a solid foundation for a strategic liquidity management structure: the more clearly they know where their cash is and what their cash requirements are over a certain period of time, the better they can steer their corporate ship through otherwise murky waters.
Without efficient cash flow forecasting, companies cannot analyze, track, and manage risk exposures that continuously challenge treasury. Maintaining optimal levels of liquidity is crucial for ensuring the continued success of a corporation. If companies have too much unused cash lying around in bank accounts or even in corporate in-house accounts, they will lose out on interest earnings and may even have to pay interest fees for external capital.
This is where The American Deposit Management Co. comes in. In 2009, ADM was formed to give treasury managers products and services that provide liquidity and competitive yield while streamlining internal operations. ADM offers a wide range of products and solutions for the public and private finance manager. With services ranging from income-generating deposit management to business banking solutions, focuses on achieving long-term financial success for its clients. The company delivers its services through an expansive network of Federal Deposit Insurance Corporation (FDIC)-insured financial institutions, and specializes in privately insured, collateralized, and FDIC-insured certificates of deposit and money market management. Its list of clients includes many top U.S. corporations, municipalities, universities, public funds, non-profits and legal industry experts.
Headquartered in Delafield, Wisconsin, ADM was founded to help large depositors access to deposit insurance in excess of the current amount of $250,000 limit per tax ID. The vertical of the company was selected as the founders felt the absence of a proper cash management solution in align to depositors in the market, as most of the products that provided safety of large cash balances were offering a less attractive yield for the customers.
The founders Kelly A. Brown and Robert Zondag started the company with 1,500 square foot office in Glendale, WI. But by the year 2017, ADM relocated to 15,000 sq. ft. office in Pewaukee, WI and has expanded their product offering to clients in both the private and public sectors.
One of these products, American Payment Solutions, is a payment enhancement protocol that provides seamless reporting and rebate sharing. ADM has also been successful in drafting legislation that adds new investment options for public depositors in many states.
In conversation with the CEO, Kelly A. Brown
Tell us about your first product that was launched?
The first product that was launched was called The American Money Market Account (AMMA™). We were the pioneers of deposit aggregation and remain a powerhouse to this day. This product offers access to full deposit insurance coverage up to $100 million per TIN, daily liquidity and a competitive yield. This product was helpful to our clients as it relieved them from the burden of tracking collateral, negotiating repurchase agreements and managing multiple bank account relationships. The clients would simply receive a monthly e-statement that included their deposit and withdraw; activity, their interest earned, and also a detailed listing of their deposits at each network financial institution.
How successful was your first project roll out?
Back then, when we created AMMA™, it was the most turbulent economic conditions we have seen in a generation. However, the product was a huge success and word of its safety and yield spread rapidly. Each passing Friday between the years of 2010-2013, the FDIC sent out a list of bank failures that consumed our inboxes. The government instituted expanded FDIC coverage to give assurance to depositors that the FDIC was behind the banking system; however the cost of this insurance to depositors was a lack of return. ADM’s AMMA product provided an avenue for large depositors to achieve safety, liquidity and return.
Are there any trigger factors/events/individuals that have played key roles in shaping your organization’s road map?
Over the past 14 months, it would be the four rate hikes that have played a major role in shaping our road map. When the economy was stagnant, we spent many years in building a brand and growing assets under management. But now, the world is a bit different and our financial institutions play a larger role.
We are proud to be chosen as one of the 50 Best Companies to Watch in Treasury for 2017 by The Silicon Review. We have worked diligently to grow the firm and create cutting edge solutions for treasurers.
How do you and your company contribute to the global IT platform and society at large?
We provide access for depositors to achieve yields they otherwise would not find, and simultaneously, we also provide funding to banks that lends the money to small businesses around the country. I feel that in our own small way, we are the gasoline for the engine of lending.
Down the road
In its tenure in the market, ADM has evolved as a powerhouse that provides an array of solutions to its clients both in terms of financial and human resources professionals. Its love for banking industry has helped in building a cordial relationship with clients, and that has motivated to build a new interactive website that might serve customers with a real-time experience. Furthermore, short-term plans include 5-10 more offices nationwide and continuing to raise the bar of ethics in banking.
Roll out the Red carpet for the CEO
Kelly A. Brown is CEO/Managing Partner of The American Deposit Management Co. In her role, Kelly oversees the strategic direction of the company and its subsidiaries. With more than $3 billion of assets managed and relationships with over 800 financial institutions, under Kelly’s leadership, ADM has become a national award-winning company producing extraordinary results.
Prior to starting The American Deposit Management Co., Kelly founded the First Wisconsin Bank & Trust Company. She led the efforts of building the fastest growing bank in Wisconsin’s history, which sold for a premium in 2008. Kelly has over 25 years of experience in senior management and leadership positions in local, regional and national banks. In her career, she has worked in several divisions including commercial lending, private banking, trust, retail banking and treasury management. Along with her executive leadership skills, Ms. Brown has a sought after expertise in the management of sales and sales teams in the financial services industry. In 2015, Brown also helped to create and is now the Chairman of the Marquette University Banking program.