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FinTechs – No Longer Competitors, but Partners

Today, there are a slew of fresh, young financial technology firms – or FinTechs for short - that are leveraging technology, the Internet and smartphone apps to address inefficiencies across the spectrum of financial services. These FinTechs are well-financed by venture capitalists, private equity firms and forward-looking FIs (financial institutions) who see the enormous profit potential of innovation and disruption in the financial sector, and want a slice of it. So, should financial instituti...

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Topics: Technology, FinTech

Jerome Powell for Federal Reserve Chair – What Does That Mean For Banking?

On 11/2/2017, President Trump nominated Jerome Powell to be the next Chair of the Board of Governors of the Federal Reserve System, replacing incumbent Janet Yellen. Powell is widely expected to sail through Senate confirmation hearings and commence his four-year term as Chair on 2/1/2018. He is currently a member of the Board of Governors. So let’s get to know the man and predict how his tenure might impact jobs, interest rates, GDP growth, the financial markets and the banking sector.

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Topics: Trends, Federal Reserve, In the News

Make Running Out of Cash a Thing of the Past

Straps of Cash - Emergency Shipments At one point or another, most customers have probably experienced an ATM that’s out of cash, or had trouble getting the denominations they need when they visit a branch. It’s rare, but it happens from time to time at most branches, and sometimes more often than some would like to admit. Why are branches running out of certain denominations and cannot fulfill demand? How does this shortage impact the branch and its customers? What can branches do to address th...

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Myth of Cash Management: Reducing Cash equals Optimal Cash Levels

#1 Myth of Cash Management: Reducing Cash equals Optimal Cash Levels While cash is central to banking operations, most financial institutions (FIs) carry too much of it (about 20-30% more than what they actually need) and unwittingly bear the direct and indirect costs of carrying excess cash. When banks and credit unions find out that they’re carrying too much, they often reduce their cash levels by a flat percentage across the board and assume that they’ve addressed the issue and solved the pro...

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Topics: Branches and ATMs, Cash Limits, Cash Management, Cash, Cash Usage, Cash Balance

Top Four Underlying Costs of Cash Management

Cash is the lifeblood of financial institutions (FIs) and our economy, but when a bank or credit union carries it in excess, cash can end up being an idle, non-earning and deflationary asset, with a high cost of carry. While FIs strive to minimize reserve requirements, they must also optimize cash inventory levels and reduce the following four underlying costs of cash related to poor cash management and logistics: 

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100% Branchless Banking – Myth or Reality?

  Branchless Banking - Is it possible? In a recent logicpath blog post - Top 3 Questions to Ask Before Creating a Branch Transformation Strategy – my colleague, Meghan Quinlin, spoke of smart kiosks, online banking, and phone banking replacing some existing branches at banks and credit unions if the demographics made sense. The keyword in that statement is ‘some’, because surveys continue to show customers – young and old – still want branches as part of their banking channel mix. But, beyond cu...

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How Will the Fed’s Balance Sheet Reduction Affect Banking?

At its September 2017 meeting, the Federal Open Market Committee (FOMC) decided to leave interest rates unchanged, as was widely expected. The bigger news was that the Committee had decided to initiate its balance sheet normalization program in October 2017 so, in this blog piece, we plan to understand the unwinding of the Fed’s balance sheet and how it might impact markets, interest rates and financial institutions such as banks and credit unions.

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Top 3 Questions to Ask Before Creating a Branch Transformation Strategy

New generations are demanding a wide range of mobile and web-enabled products and services in the banking and financial services sector. Self-service and new digital offerings have been well received by millennials and Generation-Xers (who, together, make up America’s largest demographic) and have pushed financial institutions (FIs) of all sizes towards transforming their business models to better compete, and survive the digital age.

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Three Methods to Improve Customer Engagement

 How Customer Engagement Can Help Your Business Thrive in Today’s Disruptive Banking Environment Today’s business environment is very different from what it was twenty years ago. Tremendous technological innovation over the last two decades and the accompanying free flow of capital have led to an unprecedented disruption of existing business models (including financial services) and have re-shaped customer behavior and expectations. To survive and thrive, traditional businesses, such as banks an...

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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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