logicpath Blog | Whoknew

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

Aug 23, 2018 | Teresa Romero

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.

Topics: Regulations, FinTech

Inventory Methods You can Apply to Cash

Aug 16, 2018 | Meghan Quinlin

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.

The History of Deposit Reclassification

Aug 9, 2018 | Kelly MacConnell

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...

Topics: Deposit Reclassification

Why Deposit Reclassification is Important to Financial Institutions

Aug 2, 2018 | logicpath

A financial institution’s main goal, like most businesses, is to increase efficiency and profitability, and one of those ways is to minimize non-interest bearing and low-earning assets. A large low-earning asset for most institutions is its Federal Reserve balance due to Reserve Requirements. Deposit Reclassification is important to community banks and credit unions, especially in a rising interest rate market, because it allows you to reclaim your Federal Reserve balance, and invest that money ...

Topics: Deposit Reclassification, Retail Sweep Program, Federal Reserve Balance

Four Factors to Consider when Assessing Branch Cash Inventory Management

Jul 26, 2018 | Kelly MacConnell

Inventory management can sound intimidating, however, having a good inventory management system in place is vital to the success of any business. When it comes to banks and credit unions, there are many variables that come into play when understanding cash inventory. How much needs to be ordered? How much cash is in transit? Do you have the correct denominations to satisfy customer requests? Here are four top inventory management factors you should consider for your financial institution’s cash:

Top 4 Financial Apps Customers Love

Jul 5, 2018 | Teresa Romero

The way your customers approach banking is drastically changing, and it’s no secret that fintechs continue to rise in popularity, but they don't have to be the bad guys. In fact, many banks and credit unions are leveraging fintech technology and partnerships to help create a better, more customized experience for customers. In a recent article from Forbes.com, the author, Martin Haering, analyzed the many variables of the banking environment and came to the following conclusion:

Can Banks Give Payday Loans A Run For Their Money?

Jun 21, 2018 | Meghan Quinlin

Payday loans are very, very expensive, and often trap consumers in a vicious cycle of debt that is hard to break. The sad part is that Americans at the bottom of the financial ladder, folks who barely get by paycheck to paycheck, have no option but to resort to these loans because banks and credit unions have not offered small short-term loans to consumers since the recession. Hence, a recent bulletin from the Office of the Comptroller of the Currency (OCC) was welcome news for cash-strapped con...

Topics: Banking Products

Don’t Call It a Rewrite – The Ease of Volcker Rule is for Efficiency Sakes

Jun 15, 2018 | Kelly MacConnell

On May 30, 2018, the Federal Reserve proposed rules to simplify compliance requirements relating to the "Volcker rule," which was established after the global financial crisis of 2008, and prevented taxpayer-insured banks from engaging in risky proprietary trading, and from owning or controlling hedge funds or private equity funds. The Fed’s proposed changes do not go against the rule’s core principles of prohibiting banking entities from making risky financial bets, but aim to ease the nightmar...

Topics: Federal Reserve, In the News

Top 5 Mistakes of Branch Transformation

May 17, 2018 | logicpath

Faced with changing customer preferences, especially from millennials and Generation-Xers who make up America’s largest demographic, banks and credit unions are keen to transform their branches from traditional to newer models that incorporate the delicate balance between high tech and high touch (see 100% Branchless Banking – Myth or Reality?). But successful branch transformations aren’t easily accomplished. Here’s why:

Topics: Branch Transformation

The Fear of “Running Out of Cash” is an Illusion

May 10, 2018 | Teresa Romero

Every responsible branch manager strives to satisfy his/her customers’ banking needs, especially when it comes to their demands for cash. Not being able to fulfill a customer’s request for cash at a bank or credit union branch is probably every head teller’s nightmare! Every banker wants to have more-than-adequate cash, and is pretty fearful of running out of cash (total cash holdings at the branch; not to be confused with cash flow at the branch). This fear, however, is an illusion that leads t...

Topics: Vault Cash, Cash Usage