When selecting a bank partner, assessing safety and soundness should always be a top priority for any depositor. However, understanding what that means and how to assess it can be overwhelming.
Historically, these terms refer to the financial strength of a bank: its capital levels, the quality of its loans, and its ability to withstand economic downturns. Regulators have long measured safety and soundness through balance sheets, liquidity ratios, and lending practices but in today’s environment that may not be enough. Cybersecurity threats are more prevalent than ever, posing a unique challenge and adding a layer of complexity when assessing safety and soundness.
October is National Cybersecurity Awareness Month, which is a timely reminder that banks are not only financial institutions but also technology companies. As such, they are prime targets for increasingly sophisticated attacks. From phishing schemes that target employees to ransomware that can shut down entire systems, cyber risks pose real threats not just to a bank’s operations, but also to the businesses and communities that rely on them. Even the most financially sound bank is vulnerable if it lacks strong digital defenses.
For business owners and organizational leaders, this makes assessing a bank partner more complex than ever. It’s no longer enough to ask whether deposits are insured or to or to review call reports, you also need to understand how your bank protects against cyber intrusions and what systems it has in place to detect and respond to threats. Doing this thoroughly for one bank is a challenge; managing it across multiple relationships can be overwhelming.
That’s where Ampersand comes in. We specialize in deposit management, helping organizations optimize their banking relationships. Our expertise extends beyond deposit safety and rate optimization to include working with our bank partners to ensure cybersecurity safeguards that define modern bank soundness. These include:
- Strong regulatory standards – Banks are expected to follow federal guidelines that require them to identify risks, monitor systems, and have clear plans for responding to incidents.
- Industry best practices – Many banks align with widely accepted cybersecurity frameworks that focus on protecting data, detecting threats quickly, and recovering operations if an attack occurs.
- Regular testing and monitoring – Banks should frequently test their defenses and monitor for suspicious activity to catch weaknesses before criminals do.
- Secure access and data protection – Tools like multi-factor authentication and data encryption help keep sensitive information safe even if systems are compromised.
With Ampersand as your partner, you can focus on running your business while knowing your deposits are strategically placed, safe, and working for you.
