For benefit of (FBO) accounts

an fbo account is a type of bank account that can be set up for the benefit of others these accounts can be for one person or entity or for many fbo types the structure of an fbo account to support your needs depends on your specific use case as you are onboarding, cross river will work with you to determine the best structure to support you here’s an example of how an fbo account is often structured to support a fintech use case the fintech opens a single bank account with a partner bank the account is titled something like fintech inc fbo \[its users] this shows the bank that the account funds don’t belong to the fintech itself—they belong to its users the fintech keeps a ledger —a digital record—that tracks how much of that pooled money belongs to each user the bank doesn’t see or manage this breakdown; it only sees the total balance in the fbo account the account is not fdic insured per individual user by default , but it can be set up to do so if the fintech and the bank meet certain pass through requirements, like proper user identification and record keeping if done correctly, each user’s funds in the fbo are protected just like a personal checking account would be advantages and use cases fbos are widely used in fintech because they avoid the need to individually open and manage thousands or millions of individual bank accounts still comply with financial regulations, like storing customer funds separately from company funds common use cases include digital wallets (for example, venmo or cash app like apps) investment platforms marketplaces holding seller/buyer funds earned wage access or early pay apps