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Sweeping money

Top Three Features to Look for in a Retail Sweep Program

Recently, my colleague discussed the top features to look for in a branch cash management software solution. This week, I want to discuss the features you should look for in a retail sweep program, also known as Deposit Reclassification. Retail sweep programs help banks and credit unions recover their Federal Reserve balances due to reserve requirements, through reclassifying transaction accounts as savings accounts. In today’s rising rate environment, reclaiming low earning funds allows an inst...

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Topics: Deposit Reclassification

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Top Five Features to Look for in Branch Cash Management Software

After the third Fed funds rate increase of the year, financial institutions should consider focusing on branch cash management initiatives that identify and minimize non-interest earning assets through optimizing cash inventory to ultimately reinvest it into lending and other investments. One of the most cost effective and efficient ways for a bank or credit union to reduce excess cash is by using a software solution. However, many institutions don’t know where to start when looking for a branch...

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Topics: Cash Management

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Why is Hacking on the Rise?

It’s no secret that privacy is a huge issue. It seems that nowadays we can’t go a week without seeing another data breach in the news. The most recent breach was  Facebook, who recently got hacked and more than 50 million users were impacted. In 2017, we hit a new record high of 1,579 breaches, an upturn of 44.7 percent, which means we’re seeing multiple breaches per week, if not per day.

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Topics: Trends

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Four Places Your Branch May be Stockpiling Excess Cash

Whether a financial institution has 10 branches, or more than 100; they all face similar challenges when it comes to branch cash management. My colleague previously discussed that banks and credit unions shouldn’t fear running out of cash. However, there are many reasons a branch might feel the need to keep more cash-on-hand then they need, or in some cases they may not be aware of where the excess cash is.

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Topics: Cash Management

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FOMC Updates

FOMC Updates: Sept. 25-26, 2018 Last week, the Federal Open Market Committee (FOMC) met to discuss the economic conditions for the rest of 2018 and make predictions for the next three years. Though expected, the biggest news to come out of the meeting is the third increase of the Fed funds rate this year. In a unanimous decision, the Fed raised the rate by 25 basis points from 2 to 2.25 percent. The new interest rate hike means that savers can look forward to seeing higher yields on CDs and mone...

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Topics: Interest Rates, Regulations

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How to Select the Best Lease Accounting Software for Your Bank or Credit Union

Financial Accounting Standards Board’s Accounting Standards Codification (FASB ASC 842) and the International Financial Reporting Standards 16 (IFRS 16) are the first major updates to lease accounting regulations, and the changes are significant. With the regulatory pressures already placed on financial institutions, it’s critical to find solutions that enable you to ensure compliance, and fit lease accounting into your day-to-day routines. There’s good news, if your transition is handled proper...

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What Financial Institutions Need to Know about the New Lease Accounting Standards

Financial Accounting Standards Board’s Accounting Standards Codification (FASB ASC 842) and the International Financial Reporting Standards 16 (IFRS 16) represent sweeping changes to the way companies account for leases, and banking is one of the industries that is expected to be impacted most.

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What is the Impact of Fintech Charters on Community Banks and Credit Unions?

On July 31, 2018 the Office of the Comptroller of the Currency (OCC) announced the approval of the national fintech charter. This announcement followed the Treasury Department’s report about how non-banks, like fintechs, should be regulated. The OCC’s decision is based on government efforts to promote economic growth, and support innovation that improves financial services to customers, businesses and communities.

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Topics: FinTech, Regulations

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Inventory Methods You can Apply to Cash

A good inventory system is important to a business’ growth. For most industries, inventory ties up cash figuratively; but for financial institutions, branch, ATM, vault and device cash is an FI’s inventory. Like any other business, not enough or too much inventory can be costly to the business and inhibit growth.

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The History of Deposit Reclassification

Deposit Reclassification has existed since the early 90s, but most people don't know the story behind the process that has helped financial institutions reclaim billions of illiquid assets to reinvest in their local markets. Here is the story behind this vital solution. During his time at KPMG as a National Partner in charge of Revenue Enhancement Consulting Services, Nicholas Ceto, Jr. worked with nearly every major bank in the country. Unfortunately, after more than 18 years at KPMG, Ceto reti...

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Topics: Deposit Reclassification