Arival Bank (Review 2024)

[inector]

There was a thread back in 2020 about Arival Bank, which was quite negative

https://www.offshorecorptalk.com/threads/arival-bank-anyone-used.29735/
However, wanted to get new opinions on the bank, as they got a correspondent FDIC bank:

Arival Bank International Corp. is licensed and regulated by the Office of the Commissioner of Financial Institutions (OCIF) in Puerto Rico as an International Financial Entity (license #IFE-065). Arival Bank International Corp. is not directly insured by the FDIC. FDIC insurance coverage (with the standard maximum deposit insurance coverage up to $250,000) is provided by our correspondent banking partner, Quaint Oak Bank, Member FDIC.
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[JohnLocke]

I would still be very cautious about using that bank. Start by making small transfers to your account if you decide to open one with them. Stick to small amounts for at least 5 to 6 months, then see how everything goes and if anything arises that suggests you should stop using them.

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[jafo]

inector said:
There was a thread back in 2020 about Arival Bank, which was quite negative

https://www.offshorecorptalk.com/threads/arival-bank-anyone-used.29735/
However, wanted to get new opinions on the bank, as they got a correspondent FDIC bank:
Click to expand...

What does this mean?
@Sols - Any idea what this means? If I have $250K deposited with Arival Bank and they go under, will Quaint Oak Bank's FDIC insurance cover it? How does the corresponding bank's coverage cover the bank's funds without FDIC coverage?

JohnLocke said:
tick to small amounts for at least 5 to 6 months, then see how everything goes and if anything arises that suggests you should stop using them.
Click to expand...

John, what's the logic behind this? Just being cautious, or is this a SOP you follow to detect "holes in the hull"???
I'm eager to learn NOT to get caught with my pants around my ankle... Basically, I want to avoid a Euro Pacific unpleasantry.

 

[ilke]

jafo said:
View attachment 6461

What does this mean?
@Sols - Any idea what this means? If I have $250K deposited with Arival Bank and they go under, will Quaint Oak Bank's FDIC insurance cover it? How does the corresponding bank's coverage cover the bank's funds without FDIC coverage?
Click to expand...

I'm not Sols, but I would assume that it's not counted as the bank's funds being insured. Rather than being a correspondent, Quaint Oak opens accounts for the customer with them, and they are directly protected inside Quaint Oak's FDIC (i.e. the customer is banking with QOB in the eyes of the FDIC). I think that Arival have just worded it incorrectly. AFAIK, the receiving accounts are not at Arival Bank but at Quaint Oak, so this explanation would make more sense.

 

[jafo]

ilke said:
I'm not Sols, but I would assume that it's not counted as the bank's funds being insured. Rather than being a correspondent, Quaint Oak opens accounts for the customer with them, and they are directly protected inside Quaint Oak's FDIC (i.e. the customer is banking with QOB in the eyes of the FDIC). I think that Arival have just worded it incorrectly. AFAIK, the receiving accounts are not at Arival Bank but at Quaint Oak, so this explanation would make more sense.
Click to expand...

This makes sense. Thanks!

 

[Sols]

jafo said:
What does this mean?
@Sols - Any idea what this means? If I have $250K deposited with Arival Bank and they go under, will Quaint Oak Bank's FDIC insurance cover it? How does the corresponding bank's coverage cover the bank's funds without FDIC coverage?
Click to expand...

@ilke is probably right, but this is AFAIK untested. As an account holder with Arival, you probably don't have a relationship with Quaint Oak Bank. So does the bank really have an FDIC obligation towards you?

Let's hope we never have to find out.

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This is the probably the answer to your question.

 

[ilke]

Sols said:
@ilke is probably right, but this is AFAIK untested. As an account holder with Arival, you probably don't have a relationship with Quaint Oak Bank. So does the bank really have an FDIC obligation towards you?

Let's hope we never have to find out.
Click to expand...

I presume they would just because they issued the account for you with an Acct Num at their bank. But I'm not completely sure what creates FDIC obligations at banks.

As you said, let's hope both Arival and Quaint Oak last, and we don't need to witness the situation or find out what happens.

Used to not have the most trust in them because of the Russian background (Russia + fintech/bank licenses don't usually work out the best, although I don't want to seem xenophobic), but they've now sold to investors and the previous American CEO Jeremy stepped down. Maybe it'll advance further with the new leadership that started just a few months ago. I'm curious & pretty hopeful.

At the moment, the pricing is still not optimal. I would not consider it fair to pay up to $2,250 in onboarding fees to open a basic US corporate account, even for a higher risk business. Nor would I want to hold 6-figures of corporate funds with them to get the fees waived. Maybe it's worth it for somebody.

But, for me, at that scale, I'd rather go for The Kingdom Bank and at least get SEPA and multi-currency at an EU bank (for higher-risk) or go for a larger LT / UK EMI and save money.

Last edited: Mar 20, 2024

 

[Piano]

How long this bank exist ?

 

[andorra]

Puerto Rico bank are at great risk look at euro pacific , it was a solid bank wiped out in a blink of eyes and no one understand why?

 

[jazzybell]

I'm looking for alternatives to Arival bank that accepts ACH
Any recommendations?

 

[daniels27]

Maybe Zenus.com?