Cashfac Escrow Accounts – FAQs

Here at Cashfac we offer a white-labelled solution to help financial institutions and other organisations offer a full self-service solution to their clients who themselves need to offer an escrow account. The requirements are diverse and vary across multiple industries such as Trust, Legal, Property and Care businesses.

….and as such, we get asked a lot of questions!

Inspired by our newly launched Escrow Accounts solution brochure, we’ve answered 6 of the most frequently asked questions about our solution – one from each of the following areas:

1. Escrow Account Tasks
2. Transaction Allocations
3. Payments
4. Reporting
5. Integration
6. Compliance

Question 1 – Escrow Account Tasks

Q: Can a bank’s customers open new escrow accounts and manage transactions from them effectively?

A: Yes. Our platform supports a full self-service set of capabilities for escrow accounts to be created by the bank’s customers. Once created, transactions can immediately be allocated to them. Multiple types of accounts can be created, including Interest on Lawyer Account Fund (IOLA), Interest on Lawyers Trust Accounts (IOLTA) and 1031 Exchange accounts.

Question 2 – Transaction Allocations

Q: How are transactions allocated to the escrow accounts?

A: Our Virtual Bank Technology (VBT) platform enables transactions to be automatically posted to the relevant escrow account, thus reducing the workload associated with manual allocations. Cashfac VBT supports allocations via a set of rules as well as through matching to expected receipts. Through the solution as well as knowing who has paid, the bank’s customers can identify who hasn’t paid and who hasn’t paid the correct amount.

Question 3 – Payments

Q: Can you make payments from the platform?

A: Payment initiations can be made from the escrow account. Withdrawals can be made directly from escrow accounts with the platform performing the necessary credit limit checks and automatically creating payment transactions from the master account. This removes the need for any two-step processes of transferring to the master and then paying out from the master account.

Question 4 – Reporting

Q: What types of reports can be generated from the platform?

A: The bank’s customers can run a set of reports as required, including bank statements, reconciliation reports and regulatory reports such as tax certificates and control reports/dashboards to identify balances and overdrawn positions.

Question 5 – Integration

Q: What customer integration does Cashfac’s escrow solution offer?

A: It is increasingly important for the customers to be able to integrate seamlessly into the escrow account solution from their ERP / back-office systems. Cashfac enables batch import and API interfaces for account management functions, transactions and the flexibility for the customer to define their formats.

Question 6 – Compliance

Q: Is the solution compliant with current regulatory requirements?

A: The solution is configured to meet the requirements of state and federal regulation, through the segregation controls, correct account definitions and the associated interest and tax postings.

Watch Our Latest Webinar On-Demand

In partnership with Sterling National Bank, our recent webinar explores how banks can drive customer satisfaction in 2021 by delivering an escrow solution tailored to their customers’ sector, size and complexity of requirements.

Watch on-demand.