The banking needs of associations are unique. Many of the "big name" banks simply aren't well positioned to provide services to this niche market. A number of specialty banks have risen to the challenge of providing services to meet the unique needs of the industry. The most common needs / issues for associations are:
1) Lock box services that allow members to make monthly dues payments that are directly deposited to the association's bank account. Most specialty banks provide electronic reports to the association that can be downloaded into the association's accounting software, saving the time and effort of manual entry of this data. Payment information can be directly associated with each member's account within the software.
2) Many banks participate in a system that allows funds to be allocated to various banks and accounts to avoid bumping up against eh FDIC insurance limitation.
3) Loans for reconstruction projects are becoming a very common aspect of cash flow planning for associations. But, only banks who serve this specialized market know how to collateralize and structure their loans to both protect the bank and meet the needs of the association.
The HOA Financial Group will be providing a list of all banks that have developed processes and programs to serve this niche market. A listing in the directory is not an endorsement by the HOA Financial Group but is simply an aggregation of information. COMING SOON.