Best HOA Banking Services

Like many organizations, homeowners associations experience a lot of cash inflow and outflow. Make financial management easier with the best HOA banking services.

 

Why Your HOA Needs Banking Services

Modern banking has made it much easier for organizations to manage their finances. Homeowners associations, in particular, will greatly benefit from utilizing banking services for many reasons.

First of all, banking services allow for smoother and more efficient fund management. Association boards can manage the HOA’s account online at any time and see the movement of money. With the creation of two accounts — one for the association’s operating fund and the other for reserves — board members can also prevent commingling funds, which can lead to confusion and untracked spending.

Secondly, banking services make collection efforts and payment processing more convenient. Although there are HOAs that still rely on mail-in checks, there are many others that are transitioning to online dues collection. With banking services, homeowners can simply transfer their payments online or with the help of an ACH draft.

Thirdly, most banks are accounting software integration-ready. If you use accounting or HOA management software, you can seamlessly link your accounts to the program or upload compatible files as provided by your bank. This makes a world of difference when it comes to reconciling bank statements and generating financial reports.

Finally, by utilizing the services of a bank, HOA boards are given access to reliable assistance. When you have questions or concerns, a banking professional will be readily available to answer your call. Once your association develops a strong relationship with the bank, you may even be granted priority service.

 

What Can HOA Banking Services Help With?

Financial institutions offer different banking services designed to meet the individual needs of homeowners associations. Generally, though, it is ideal to look for a bank that provides the following solutions at a minimum:

  • Account management
  • Deposit services
  • Payment processing
  • Collections
  • ACH payments
  • Reporting services
  • Fraud prevention
  • Accounting software integration
  • Lockbox services
  • Online banking
  • Flexible investment options

 

Top 5 Best HOA Banking Services

While it is true that modern banking solutions exist for organizations of all sizes, community association banking works a little differently than most others. As such, it is imperative to choose a financial institution with services that specifically cater to condo and homeowners associations.

Here are the best banking services for homeowners associations:

 

1. Alliance Association Bank (Western Alliance Bank)

Alliance Association Bank, a division of Western Alliance Bank, serves homeowners associations, planned unit developments, and common interest communities. It offers a wide range of services and tools that are tailored to suit the needs of community associations. In addition to community checking, Alliance Association Bank also offers loan services, treasury management, and convenient homeowner services.

Services include but are not limited to:

  • Deposit accounts (checking, money market, CDs, etc.)
  • Loans and lines of credit
  • Insurance premium financing
  • Online banking
  • Lockbox
  • Remote deposit
  • ACH
  • Automated account reconciliation
  • Assessment payment services

Alliance Association Bank has branches nationwide.

 

2. Cadence Bank

Cadence Bank provides business and personal services, but it also specializes in homeowners association banking. It offers a variety of banking accounts, including but not limited to association checking, money market, certificates of deposit, and homeowner accounts.

Cadence Bank also helps facilitate smoother receivables processing using ACH, online banking, remote deposit capture, and insured cash sweep, among others. Additionally, if your HOA is strapped for cash, Cadence Bank finances associations in need of certain repairs, replacements, or maintenance.

Cadence Bank has branches in Texas, Mississippi, Alabama, Georgia, Florida, and Tennessee.

 

3. Popular Association Banking (Popular Bank)

Popular Association Banking, a division of Popular Bank, has been providing banking services to condo and homeowners associations since 1994. This bank specializes in custom lending solutions for repairs and maintenance as well as insurance premium financing and contingency lines of credit. However, associations can also choose among accounts like checking, savings, money market, and CDs.

Furthermore, Popular Association Banking’s cash management service allows you to access your account online and deposit checks remotely. It also has lockbox services and automated fraud detection technology that keeps accounts safe and secure.

Popular Association Banking is a National Corporate Member of the Community Associations Institute. It has branches in over 30 states.

 

4. Union Bank

Union Bank boasts integrated solutions designed to meet the needs of homeowners associations. With this bank, associations can create an account of their choosing and access it online. Deposit services include money market accounts, operating accounts, and time deposit accounts.

Union Bank also allows for convenient and efficient collections through its tailored lockbox payment processing, with remote deposits, ACH transactions, and more. It also offers CDPlus, a program that lets associations maximize their FDIC coverage by allocating assets across several institutions. Other than that, Union Bank is compatible with 60 accounting software packages and has built-in fraud prevention features.

Union Bank is headquartered in New York City, though it has offices all over the United States.

 

5. Valley Bank

With Valley Bank, homeowners associations can choose from different accounts. Its checking account, designed for operating funds, offers unlimited check writing and no monthly service charge when you maintain a daily balance of $500. On the other hand, its checking plus account gives you unlimited monthly transactions and a high-interest rate. It is perfect for operating funds as well as reserve funds. Other accounts include money market, CDs, CDARS, and money market sweep.

Additionally, Valley Bank provides loans to associations that come with competitive rates and favorable terms. Other services include lockbox solutions, online banking, and payroll processing. Plus, it only takes a few minutes to apply for an account online.

Valley Bank has over 200 branches throughout four states — Alabama, Florida, New Jersey, and New York.

 

An Important Decision

Homeowners associations handle a large number of funds on a daily basis. Thus, it is paramount to choose the best HOA banking services to protect and, ideally, grow your assets. At the same time, it is vital that you consider other factors — such as convenience, banking fees, and fraud prevention — when making your decision.


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