Bluevine Expands FDIC Insurance Coverage by Working With Sweep Network

Bluevine, a digital banking platform catering to small businesses, has expanded its Federal Deposit Insurance Corporation (FDIC) insurance coverage.

Account holders with Bluevine will now have coverage of up to $3 million, an increase from the industry standard of $250,000, the company said in a Tuesday (Sept. 5) press release. This enhanced protection is made possible through Coastal Community Bank and a sweep network that consists of 17 FDIC member banks.

By dispersing customers’ deposits across these banks, Bluevine ensures that account holders have uninterrupted access to the money within their Bluevine Business Checking account, according to the release.

Bluevine Chief Financial Officer David Quinn said in the release that the company is committed to simplifying financial operations for business owners. The increased insurance coverage on cash assets plays a crucial role in achieving this mission.

By leveraging the sweep network, Bluevine customers can benefit from expanded insurance coverage without managing multiple banking relationships, Quinn said in the release. This development allows business owners to focus more on growing their businesses, rather than the security of their money.

Bluevine customers will automatically receive the additional FDIC insurance coverage provided by the sweep network, although they have the option to opt out at any time, the release said.

The new benefit comes as the company has integrated accounts payable (AP) capabilities directly into its banking platform, streamlining bill management, automation, user access control and payment capabilities for small business owners, according to the release. Additionally, Bluevine has partnered with Wise to offer a convenient and transparent international payments and foreign exchange (FX) solution for small businesses operating globally.

Bluevine’s products, including business checking, integrated AP and lines of credit, have been used by more than 500,000 business owners, according to the release.

FDIC insurance coverage became front-page news in March with the collapses of Silicon Valley Bank and Signature Bank and the efforts of the FDIC and others to protect the money of depositors.

The insurance itself is the explicit guarantee by the government that the funds up to a certain amount in an account are protected.