logicpath Blog | Whoknew

Working Together - Regulation D and Deposit Reclassification

Sep 7, 2017 | Kelly MacConnell

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...

Topics: Regulations, Deposit Reclassification, Federal Reserve Balance

Recover Your Federal Reserve Balance and Improve Profitability within 60 days... Here's How!

Aug 24, 2017 | Kelly MacConnell

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.

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

Top Three Challenges & Solutions for Branch Cash Management

Aug 17, 2017 | Meghan Quinlin

With interest rates poised to rise in the coming quarters, financial institutions (FIs) must seriously undertake cash management initiatives that identify and minimize non-earning assets (such as un-needed or excess cash in ATMs, cash dispensing machines, teller drawers and vaults), optimize cash inventory and redeploy excess cash profitably through loans and investments. While most FIs “think” they manage cash efficiently, data shows that cash is often managed up - to limits, not down - to usag...

Topics: Cash Limits, Cash Management, Vault Cash, Cash Usage

The Biggest Pitfall of Branch Cash Management - Managing Up to Limits

Jul 27, 2017 | Teresa Romero

Financial institutions (FIs), such as banks and credit unions, set limits on the maximum amount of cash they can carry in their branches and ATMs. These limits reflect cash needed to maintain insurability, regulatory compliance and risk management, and to meet fluctuating customer cash withdrawals. And that’s all well and good. But most cash is managed up to this maximum cash limit, and this is the biggest pitfall of branch cash management today.

Topics: Cash Limits, Cash Management, Vault Cash

4 Characteristics to look for in a Universal Banker

Jul 13, 2017 | Leanne Ramsey

Every financial institution is looking for ways to operate efficiently - Working Smarter, Not Harder. A trend in staffing, which has been embraced by banks and credit union, is employing a "Universal Banker" or "Universal Associate" to operate branches. They are aslo internally called Floaters, because they have the ability to travel between branches or throughout the branch to provide coverage.

Topics: Trends, Customer Service

What is C3 Financial and How Do You Benefit?

Jul 6, 2017 | Meghan Quinlin

Have you ever wondered what tools and solutions are out there to help manage branch, ATM, device and vault cash? Managing cash internally, especially when money touches so many different hands, can be difficult and unruly to handle. There has to be a better way than cash position reports and spreadsheets.

Topics: Analytics, Cash Limits, Cash Management

Internal Branch Cash Studies: Doing it Yourself vs. Hiring a Professional

Jun 29, 2017 | logicpath

Branch Managers who oversee cash operations are burdened with estimating branch and ATM cash flow in order to properly service their customers. On top of that, managers must balance delivery schedules, ordering time frames and limits – all while preparing for unexpected inflows or outflows, that can happen at any time. How can you manage competing cash needs, while also addressing all the other operations of the branch?

Topics: Branches and ATMs, Analytics, Cash Management

The State of Cash Management in Today's Banking Environment

Jun 14, 2017 | Kelly MacConnell

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.

Topics: Analytics, Cash Limits, Cash Management, Vault Cash

Branch Transformation: 3 Questions Every Banker Must Answer

Feb 26, 2016 | Kelly MacConnell

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.

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

What to Expect when Expecting an Interest Rate Increase

Jun 17, 2015 | logicpath

Will they or won’t they? We’ve been hearing that the Federal Reserve is going to increase rates for nearly a year now, which reminds me of a story read to me as a child. “The Fed! The Fed! The Fed is raising the rate!”

Topics: Banking Products, Interest Rates