Target Yield Account offers a range of integrated income solutions for savers and investors
Rize Money Inc., a fintech infrastructure platform, and YieldX, a fintech company modernizing and personalizing income investing, today announced a strategic partnership and the release of the Rize Target Yield Account (TYA), a high yield account backed by fiat currency. Fintechs, brands, and banks can now leverage the new TYA to offer a risk-optimized savings-centric product that seeks to target yields of up to 8% to attract new clients, increase client retention, and grow wallet share with existing clients.
High yield products remain in high demand, as banks struggle to provide meaningful yield on savings accounts during a time when interest rates remain near all-time lows. By providing a user-friendly TYA, fintechs are empowered to provide a dynamic user experience that includes same-day liquidity with no transfer limits, the ability to choose yield targets from 1-8% and fast account opening via a singular API. Clients can also customize portfolios that seek to create an optimized risk-adjusted return and rebalance positions back to target yield at any time with the goal of generating consistent income. The Rize TYA enables fintechs to provide a competitively differentiated account type without slowing down their initial product launch.
“We’re proud to present a target yield account that is truly the first of its kind, aiming to reduce risk for end customers while striving to generate healthy returns,” said CEO and Co-Founder of Rize, Justin Howell. “The modern banking client has been waiting for a product like this, and with the help of YieldX, and its innovative income investing technology, we’re able to strengthen the offerings of our existing and new fintech clientele to revolutionize the way the world looks at income investing.”
Current high-yield options on the market are expensive, risky, and limited in scope, with many options backed by inherently volatile cryptocurrencies. Rize empowers fintechs to offer a turnkey target yield account without the challenge of complexity, time intensiveness, and expense of developing the infrastructure internally. The Rize TYA provides existing and new clients with the ability to offer highly effective target yield accounts. Through its partnership with YieldX Advisers, LLCi an SEC-registered investment advisor, Rize unlocks the potential to achieve attractive yields through highly-liquid fixed-income investments.
“This offering is critical as traditional high yield savings accounts currently offer negative returns relative to inflation, leading to poor client experiences,” said Adam Green, CEO and CoFounder of YieldX.
“Partnering with Rize to leverage our API suite empowers forward-thinking fintechs and financial institutions to provide their customers with personalized, on-demand products like this built around targeted yield.”
The Rize TYA allows for multi-product architecture designed to integrate with a company’s existing offering, along with embedded compliance tools to help clients manage regulatory requirements. Rize offers a one-stop-shop for everything fintech builders need to establish new financial products.
The Rize Target Yield Account is made of a set of APIs that deliver a fully managed portfolio of fixed income securities to Rize’s consumer-facing fintech clients. Rize’s proprietary synthetic core allows fintech companies to move money seamlessly across account types, so TYA funds can be liquidated same-day.
The YieldX algorithms allocate to a diversified basket of liquid fixed-income ETFs whilst optimizing for the lowest risk and cost to the end investor (where risk is defined as annualized volatility and cost is defined as the expense ratio). YieldX curates a list of highly liquid funds from which to optimize and regularly reviews the constituents to ensure the funds are aligned with yield-targeted investing.