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Kelly MacConnell

Kelly MacConnell
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Deposit Reclassification vs. other Retail Sweep Programs

 A Comparison of Deposit Reclassification and the core providers’ Retail Sweep Programs Deposit Reclassification, commonly referred to as retail sweep programs, help banks and credit unions recover their Federal Reserve balances due to reserve requirements and quickly improve profitability. These programs reduce reserve requirements to the point where in most cases, they can be met with vault cash alone, without parking funds at the Fed. Financial Institutions can then invest these freed-up fund...

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Topics: Deposit Reclassification, Retail Sweep Program

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3 Branch 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

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: 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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Topics: Cash Management, Vault Cash

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Myth of Branch Cash Management: Reducing Cash equals Optimal Cash Levels

#1 Myth of branch 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 ...

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

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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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 depository 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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Topics: Regulations, Deposit Reclassification, Federal Reserve Balance

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 depository 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: Vault Cash, Profitability, Federal Reserve, Deposit Reclassification

Chained money

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, Vault Cash

Branch Transformation: 3 Questions Every Banker Must Answer

Our industry has fallen in love with the words Branch Transformation. By now you may be tired of hearing them. Before you tune them out completely, I would encourage you to take a step back and look at the bigger picture.

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Topics: Branches and ATMs, Technology, Customer Service, Branch Transformation