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Black and blue question marks

Top FAQ on Deposit Reclassification - Part 2

In our blog, “Top 3 FAQ on Deposit Reclassification,” my colleague covered frequently asked questions regarding logicpath’s retail sweep program, Deposit Reclassification; including the legality of the program, client impact, and what sub-accounting means, but let’s discuss some more common questions I get about Deposit Reclassification. In this blog, I’ll discuss what threshold percentages are, as well as how Deposit Reclassification impacts call reporting and peer-to-peer review.

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Topics: Deposit Reclassification

Interest rates on the rise.jpg

FOMC Updates

FOMC Updates: Dec. 18-19, 2018 The Federal Open Market Committee (FOMC) met at the end of the year to decide if they were going to raise rates one more time before closing out 2018. In addition, they will discuss the forecasted economic conditions in 2019. The FOMC unanimously decided to raise the Fed funds rate for the fourth time in 2018 by 25 basis points from 2.25 to 2.5 percent, despite pressure by President Donald Trump to not raise rates. However, officials saw a rate hike necessary with ...

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Topics: Interest Rates, Regulations

disclosure

What is the Impact of Disclosure with Deposit Reclassification?

Most financial institutions’ terms and conditions require notification to current customers about any changes to their account, including the reclassifying of funds into savings and checking sub-accounts, also known as Deposit Reclassification.

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Topics: Deposit Reclassification

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

money in bar chart

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

man holding lock

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

consultants standing over computer

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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magnifying glass over spreadsheet

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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Fintech lightbulb

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