Piermont Bank

Piermont Bank is a digital commercial bank built for mid-market innovation. Its human-centered support and tailored business solutions empower SMBs and fintech clients that want to scale into industry leaders. Piermont also bravely wades into uncertain economic and social waters by standing strong with exceptional female representation and tech-forward solutions every step of the way.

Curious if Piermont aligns with your business? This Piermont Bank review goes over everything you should know about Piermont Bank, including its history, standout services, and advantages that set it apart from competitors.

About Piermont Bank

Piermont Bank was founded in 2019 by its CEO Wendy Cai-Lee, the first Asian American woman to ever establish a commercial bank in all of U.S. banking history. Its board is 78% women, a mark of its dedication to serve a diverse clientele while fostering economic growth. In fact, Piermont Bank is the first FDIC designated multi-racial Minority Depository Institution (MDI) in the nation.

But don’t get the impression that Cai-Lee chose a female board of directors just for that. In an interview with Fast Company, Cai-Lee said, “I was so focused on finding the best board to help me.”

Piermont Bank focuses on providing commercial banking services with a digital-first approach. Throughout every niche, Piermont values being a real partner for enterprising companies. When a fintech partner needs something, Piermont is responsive and flexible in helping out.

Piermont Bank Products and Services

Business Banking

Banking everywhere has been pivoting to using AI chatbots with inadequate response quality. Piermont Bank elevates the banking experience by assigning you a dedicated relationship manager. Each manager has deep industry expertise, providing expert guidance and priority support for any strategic banking decisions.

Piermont Bank business banking services and products:

• Business checking and savings accounts
• Commercial loans
• SBA loans
• Treasury and cash management services

Personal Banking

Business owners and investors can benefit from Piermont Bank's personal banking solution. This can streamline your financials with one platform and Piermont Bank takes a holistic pricing model when underwriting any lending solutions for your businesses.

Fintech Banking-as-a-Service (BaaS)

A personalized solution is always better. Piermont Bank offers various BaaS solutions that are great for fintech startups.

• API banking solutions
• Embedded finance partnerships
• Custom solutions for fintech startups

Lending Solutions

Piermont Bank offers various lending solutions and services. For business lending, companies can find a suitable financing option based on their capital needs and revenue. Top features include:

• Asset-based loans for fast growth, leveraged, or turnaround companies
• Term loans for debt consolidation or large inventory
• Capital call lines for private equity and venture capital companies
• Real estate loans
• Revolving lines of credit for better cash flow
• Acquisition financing for business expansions

Piermont Bank’s Venture Capital and Private Equity lending options are built for speed and reliability. You can build your business by leveraging Piermont Bank’s capital call lines, senior-secured portfolio financing, subscription lines of credit, and more.

Piermont Bank Features and Technology

Digital platform and online banking experience

Piermont Bank does a wonderful job combining the online banking experience with the advantages of traditional banking. Piermont Bank clients can log in through their Business Banking or Personal and Commercial Banking online options.

Mobile app availability and functionality

The Piermont Banking app is available and free on both the Google Play Store and Apple Store. You can access the app conveniently and securely from mobile devices. The app is sleek and modern, and we love how you can quickly log in with Face ID. You can check your accounts and also make transfers, deposits, payments, and approvals.

Account opening process

Opening an account with Piermont Bank can be done fully digitally. All you need to do is visit their page and enter your key information:

• First name
• Last name
• Company name

You will then be prompted to enter more contact information and details.

Integration with fintech and API-driven services

Piermont Bank lets you scale up with API banking and tech-forward solutions. It empowers your business to:

• Automate payments, volume wire transfers, payroll, and collections
• Integrate financial data with ERP systems
• Customize solutions with tailored APIs
• Streamline operations
• Build real-time financial management
• Enhance customer experiences

Piermont Bank clients can feel confident offering their customers a 24/7 finance management experience via mobile apps or smart assistants.

Fees and Rates

Piermont Bank offers some of the lowest fees in the United States. Its High-Yield Business Money Market Account is notable for:

| Money Market Account –

Piermont Bank Business Money Market Account has a solid APY so you can start making a meaningful profit off of your idle cash. It has a $25 monthly maintenance fee that is waived if you maintain a $1,000 monthly average balance.

Compared to JPMorgan Chase business savings accounts, which have monthly fees from $10 to $20. You can waive the monthly service fee by meeting Chase’s requirements. However, Chase’s saving account rates and APYs are notoriously low. If you want a meaningful APY from Chase, you will need to reach requirements that can be challenging for SMBs.

If you want a dedicated Money Market Account for business, we recommend Piermont Bank.

Piermont Bank Pros and Cons

Pros:

• Open an account completely online in minutes to get the best of banking and yield on your funds
• First FDIC designated multi-racial Minority Depository Institution (MDIs) in the nation
• The only bank with a female CEO, female Board Chair, and a board that is 78% women
• Access to 24/7, world-class online and mobile banking
• Variable interest rates, unlimited deposits
• High yield options with a current APY of 4.00% for balances over $20,000
• $25 monthly maintenance fee waived if you maintain a $1,000 monthly average balance
• Inclusive lending practices

Cons:

• 6 debit transactions per monthly statement cycle may be insufficient for some
• No physical branches
• Limited consumer services
• Not tailored to enterprise-level companies

Customer Reviews and Reputation

Customer satisfaction ratings

Piermont Bank is not BBB accredited, but it is a real bank. Piermont Bank is a fully chartered FDIC insured bank.

Piermont Bank currently has too few star ratings on Better Business Bureau, but you can find customer complaints here.

Common praise and complaints

Underserved businesses, such as women and minority owned businesses, often struggle with securing funding through traditional institutions. It can be a real challenge to obtain capital for launching or growing a small business in today’s day and age. Piermont Bank does a great job providing fast and fair banking solutions to these underserved businesses. The low fees and API-driven services make Piermont Bank great for first generation entrepreneurs and e-commerce or tech brands.

SMB owners operating in growth are transition phases have great experiences with using Piermont Bank to scale and expand.

As for complaints, customers filed 39 complaints on BBB in the past 3 years. Most of these complaints were closed in the last 12 months, with many customers finding their concerns resolved by the Piermont Bank team.

Common complaints include issues with fintech companies that use Piermont Bank to provide banking services to users. Note that Piermont Bank is the actual bank that handles banking security and transactions.

Industry reputation

Piermont Bank is known for being a fast and responsive bank that uses innovations to enhance the client experience. Its low fees make it a trusted bank by small to mid-sized business owners, and its inclusive practices are popular with women-owned and minority-owned businesses.

CEO Wendy Cai-Lee shares plenty of knowledge in interviews such as her Forbes interview on How SMBs can work with banks to brace for economic uncertainties. It is always a boon when CEOs of banks are eager to share their insights to help small and mid-size entrepreneurs who are looking for guidance in an uncertain time.

Security and Compliance

FDIC Insurance

With any bank, good security is necessary. As a fully chartered FDIC insured bank, Piermont Bank has FDIC insurance coverage so that you are protected. Standard deposit insurance coverage goes up to $250,000. Clients with higher net worth or greater deposit needs can take advantage of Piermont Bank’s expanded coverage programs.

Compliance

Piermont Bank complies with banking regulations to monitor suspicious activity and ensure expertise across the board. While Piermont Bank has been proactive in its compliance efforts by allocating staff to risk management and maintaining close, direct relationships with fintech partners, it’s no secret that regulatory bodies place increased scrutiny on Banking as a Service (BaaS) banks.

As a result, Piermont Bank is one of many banks in this sector that have been told to improve compliance efforts. In February of 2024, Piermont Bank was ordered by the NY DFS and FDIC to conduct comprehensive reviews and enhance compliance protocols.

Piermont Bank shows its operational resilience by continuing to strive towards excellence and reaffirming its regulatory compliance going forward.

How Piermont Bank Compares to Competitors

Comparison with traditional banks

Compared to Chase, Wells Fargo, and other larger traditional banks, Piermont Bank is more niche and specialized. Piermont Bank is also a digital commercial bank that is tech-forward, which means it doesn’t face any struggles with legacy banking systems. You reap the benefits of modern banking, such as seamless integration and digital-first approaches.

Comparison with fintech-friendly banks

Fintech businesses wonder if Piermont Bank is the best, or if they should partner with Column, Synapse, Cross River, or other fintech-friendly banks. Every business has its own needs, but Piermont Bank is typically a solid choice for SMBs that prefer digital-first approaches.

Chris Dean, the CEO of Treasury Prime, has stated that: “Piermont Bank is a textbook example of what you need to do to be a great fintech bank.” The company has closed partnerships with dozens of fintech companies using an Engaged Bank Partner Model. Piermont Bank closely aligns with fintech client businesses, which means it can approve changes at a moment’s notice. Goals that might take months in other fintech-friendly banks can be attained within days with Piermont Bank.

Unique value for startups and fintechs

Startups and fintechs can benefit greatly from the digital-first approach of Piermont Bank. Getting the accounts with low fees and innovative services can go a long way in supporting your business.

Is Piermont Bank Right for You?

Piermont Bank is best for:

• High growth SMBs: Companies that want to support scaling operations or monetize idle assets
• Fintech startups: Firms that want embedded banking services and API integrations
• First-generation entrepreneurs: While experienced operators can also benefit from Piermont, first-gen entrepreneurs can especially benefit from Piermont Bank’s collaborative partnerships
• Diverse and underserved business owners: Companies that are woman-owned or minority-owned can benefit from Piermont Bank’s inclusive lending practices

Piermont Bank makes the most sense if you need:

• Rapid and flexible financing
• Low fee business accounts
• Personalized services and real human responses
• A partner who values diversity and inclusion

Conclusion

Piermont Bank offers a unique value proposition for SMBs and fintechs that want innovative services and a digital-first approach. Piermont’s comprehensive financing and banking solutions are great for optimizing liquidity and growing.

If you’re an entrepreneur of a tech-enabled or digitally native business, or an owner of an underserved business, consider Piermont Bank services and solutions.