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Top 3 FAQ on Deposit Reclassification

Although it’s an established process, many financial institutions (FIs) have questions about Deposit Reclassification (AKA, retail sweep programs). Even though the program was permitted by the Federal Reserve in 1994; when most hear of Deposit Reclassification or retail sweep programs - it seems too good to be true. Our family of companies has pioneered Deposit Reclassification and forged the way for this process to be a tried and true solution for banks and credit unions. To clear up some commo...

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Working Together - Regulation D and Deposit Reclassification

Deposit Reclassification, also known as a retail sweep program, allows financial institutions to reduce their Federal Reserve Bank reserve requirement. The Federal Reserve’s 12 CFR 204 Regulation D sets out uniform requirements for all depositary institutions’ reserve balances - either as vault cash or as funds held with their local Federal Reserve Bank. Retail sweep programs reduce reserve requirements, which Regulation D sets out for financial institutions to observe. How do these two opposing...

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Recover Your Federal Reserve Balance and Improve Profitability within 60 days... Here's How!

Depository institutions, such as banks and credit unions, can significantly reduce their reserve requirements and eliminate balances held at the Federal Reserve Bank by implementing retail sweep (aka Deposit Reclassification) programs. Freed-up balances can then be used to boost lending and increase profits. It is best for depositary institutions to implement a tried and true retail sweep solution because their sweep percentages optimize non-reservable balances and maximize earnings potential.

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Topics: Sub Accounts, Cash Balance, profitability, Federal Reserve, Deposit Reclassification

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Top Three Challenges & Solutions for Cash Management

With interest rates poised to rise in the coming quarters, financial institutions (FIs) must seriously undertake cash management initiatives that identify and minimize non-earning assets (such as un-needed or excess cash in ATMs, cash dispensing machines, teller drawers and vaults), optimize cash inventory and redeploy excess cash profitably through loans and investments. While most FIs “think” they manage cash efficiently, data shows that cash is often managed up - to limits, not down - to usag...

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Topics: Cash Limits, Cash Management, Cash, Cash Usage

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FOMC Minutes, Market Data Suggest Fed Will Raise Rates in December 2017

After holding the Fed Funds target rate near zero (0.00% – 0.25%) for seven years, the Federal Reserve raised its benchmark interest rate range by 25 basis points in December 2015 (see chart below) on signs of a strengthening U.S. and global economy. Next, the Fed waited until December 2016 to hike rates by another 25 basis points. At the time, the Fed signaled that there could be as many as three rate hikes in 2017 if the economy appeared strong. Then, on solid jobs numbers and falling U.S. une...

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Topics: interest rates, inflation

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The Biggest Pitfall of Cash Management - Managing Up to Limits

Financial institutions (FIs), such as banks and credit unions, set limits on the maximum amount of cash they can carry in their branches and ATMs. These limits reflect cash needed to maintain insurability, regulatory compliance and risk management, and to meet fluctuating customer cash withdrawals. And that’s all well and good. But most cash is managed up to this maximum cash limit, and this is the biggest pitfall of cash management today.

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Topics: Cash Limits, Cash Management, Cash

4 Characteristics to look for in a Universal Banker

Every financial institution is looking for ways to operate efficiently - Working Smarter, Not Harder. A trend in staffing, which has been embraced by banks and credit union, is employing a "Universal Banker" or "Universal Associate" to operate branches. They are aslo internally called Floaters, because they have the ability to travel between branches or throughout the branch to provide coverage.

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Topics: Trends, Customer Service

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What is C3 Financial and How Do You Benefit?

Have you ever wondered what tools and solutions are out there to help manage branch, ATM, device and vault cash? Managing cash internally, especially when money touches so many different hands, can be difficult and unruly to handle. There has to be a better way than cash position reports and spreadsheets.

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Topics: Analytics, Cash Limits, Cash Management

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Internal Cash Studies: Doing it Yourself vs. Hiring a Professional

Branch Managers who oversee cash operations are burdened with estimating branch and ATM cash flow in order to properly service their customers. On top of that, managers must balance delivery schedules, ordering time frames and limits – all while preparing for unexpected inflows or outflows, that can happen at any time. How can you manage competing cash needs, while also addressing all the other operations of the branch?

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Topics: Branches and ATMs, Analytics, Cash Management

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The State of Cash Management in Today's Banking Environment

The aftermath of 2007 led to extreme risk aversion and excessive cash hoarding by financial institutions (FIs) over the past decade. But today’s economic, interest rate and regulatory environment is much more cheery, so FIs must get back to aggressively managing cash assets by reallocating reserves, optimizing cash holdings and boosting lending.

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Topics: Analytics, Cash Limits, Cash Management, Cash