What type of arrangement exists if a school contracts with a financial institution to offer financial accounts directly to students enrolled at the institution?

• A. Tier 1 Arrangement
• B. Tier 3 Arrangement
• C. Tier 4 Arrangement
• D. Tier 2 Arrangement

Answer: (D)

The main idea is a campus-based partnership where a bank provides and manages the actual accounts, while the school serves as the channel that offers these accounts directly to students. In this setup, students on campus can open and use the bank’s accounts through the school’s channels, with the bank handling the account services and the school facilitating access. This describes a Tier 2 arrangement: a formal collaboration that directly makes financial accounts available to students via the institution’s environment. It’s different from a simple referral or from a broader, more integrated program, because the accounts are offered directly through the campus partnership and the bank remains the account provider.