Warning poor cash management process

5 Warning Signs of Poor Cash Management 

Most retail operations and branch managers at banks and credit unions believe that they are doing a good job of managing cash. While they may admit to some room for improvement (nobody’s perfect, right?!), many don’t believe that tweaking their cash management practices would significantly improve the branch’s operations or profitability. As a result, many branches operate under the myth that they are doing a good job of managing cash. However, here are five warning signs that might reveal poor ...

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Topics: Cash Management

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3 Cash Management Mistakes That You Don’t Know You’re Making

According to the Federal Reserve Bank of San Francisco, cash is still the most frequently used retail payment instrument; used in nearly one-third of all transactions, even when other options are available. Data also shows that 89 percent of all Americans carry cash to some extent, and nearly two-thirds hold cash every day. As a result, consumers are dependent on banks and credit unions to get the cash they need for everyday spending. However, branches and ATMs do not always meet their demand fo...

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Topics: Cash Management, Cash Usage

Auto loan

Auto Lending – An Excellent Opportunity for Credit Unions and Community Banks

Auto sales and auto loan originations are expected to drop in the coming years. However, this decline is deceiving because it is the demand for auto loans leveling out to pre-recession levels after the post-recession boom. Rather than focusing on the decline in auto loan originations, credit unions and community banks should capitalize on the still existing $1.21 trillion market for auto loan debt (as of Q3 2017).

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Topics: Banking Products, auto loans


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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