Tiedemann Partners With StoneCastle To Offer Impact Cash Solution
Tiedemann Advisors, a wealth management firm headquartered in New York City, is joining with StoneCastle Cash Management LLC, a financial technology company also based in New York, to offer socially conscious clients a new cash solution that can integrate impact investments into their portfolios.
The cash solution, called FICA Impact, allocates cash to community banks that redeploy this funding into loans and community reinvestment programs that create jobs; build infrastructure and schools; and expand social programs in communities where the impact factors, such as the level of poverty or the percentage of minority population, are at least double that of the national average.
Although community banks hold only 17% of assets in the banking ecosystem, those institutions are responsible for approximately half of all small business loans and play a meaningful role in job growth, small business entrepreneurship, access to capital and sustainable community development.
In accordance with FDIC insurance limits, cash deposited through FICA Impact allocates these deposits in increments of no more than $250,000 per tax ID per bank across the network of over 700 community banks nationwide that make up the impact bank network (excluding those based in the 20 wealthiest cities in the country). This provides ultra-high-net-worth families and organizations full FDIC insurance on balances up to $50 million per tax ID.
MassMutual And CommonBond Offer Workplace Student Loan Refinancing
The Massachusetts Mutual Life Insurance Company (MassMutual), in Springfield, Mass., is partnering with CommonBond, a financial technology company based in New York City, to offer student loan refinancing as a workplace solution.
The student loan refinancing solution is available to 2.6 million people who have access to MassMutual’s retirement plans, voluntary benefits or both, and features flexible terms and competitive interest rates to help people take control of their student debt.
MassMutual began offering CommonBond’s refinancing last year through the insurer’s network of more than 8,500 financial advisors and is now adding CommonBond to its workplace solution, MapMyFinances. This financial wellness tool helps users prioritize their personal finance and benefits needs according to their family situation and budget.
For many younger workers, there is no greater priority than addressing college debt. There are 44 million Americans who owe a total of $1.5 trillion in student loans, according to the Office of Federal Student Aid in the U.S. Department of Education. That means, on average, each individual owes a total of $37,000 with a monthly debt payment of $393, MassMutual said.
Last year, the company began tackling workers’ student loan debt by introducing a separate repayment and management program that allows workers to make student loan repayments and employers to help pay down workers’ principal.
CommonBond’s refinancing program opens the door for individuals with student debt to achieve other financial objectives, such as insurance coverage, home purchases or retirement savings. The new program enables people to potentially pay off their loans faster and save thousands of dollars in interest.