ATLANTA, Aug. 4, 2014 – CetoLogic, a leading provider of software and analytics for financial institutions and retailers, announced that six new financial institutions will implement its Deposit Reclassification retail sweep solution, converting idle funds into interest-earning income.
Headquartered in multiple states, the six financial institutions include Minnesota-based General Mills Federal Credit Union, Sunrise Banks and Venture Bank (Minnetonka, St. Paul and Bloomington, respectively); New London, Wis.-based First State Bank; North Adams, Mass.-based MountainOne Bank; and South Burlington, Vt.-based NorthCountry Federal Credit Union.
CetoLogic’s Deposit Reclassification solution reduces reserve requirements by reclassifying transaction accounts as non-transaction accounts, liquidating low earning assets for higher-yield and community reinvestment opportunities. The solution is compliant with Regulation D and Federal Reserve Board requirements. Deposit Reclassification reclassifies 60-80 percent of all checking accounts as savings deposits, which are not subject to reserve requirements. This allows Fed-held funds earning minimal interest to become accessible for diversified loans and investments, permanently increasing returns for banks and credit unions.
“CetoLogic’s Deposit Reclassification solution has enabled our bank to transform its low-earning assets and reinvest in the communities we serve, all while generating a higher margin on these funds.” said Wayne Erdman, executive vice president of Finance and controller for Sunrise Banks. “By reclaiming almost $40 million in assets that were held at the Federal Reserve Bank, we have a greater opportunity to increase revenue streams and better prepare our institution for the inevitable increase in interest rates.”
“As our economy continues to recover, we anticipate the Federal Reserve to eventually raise interest rates, but until that time, institutions need a methodology to free some of their Fed-held funds to enable lending and investments within their communities,” said David Austin, vice president of CetoLogic. “Deposit Reclassification affords financial institutions the ability to position their balance sheets with additional liquidity in anticipation of inevitable interest rate increases.”
About Sunrise Banks
Sunrise Banks, N.A., based in St. Paul, Minnesota, seeks to radically change the way urban communities and underserved people thrive by empowering them to achieve their aspirations. Sunrise is certified by the U.S. Treasury as a Community Development Financial Institution (CDFI), a designation given to only 90 banks nationwide. Sunrise Banks is also a member of the Global Alliance for Banking on Values and is a certified B Corp for its demonstrated commitment to transparent corporate governance and positive community impact. Learn more at sunrisebanks.com. Sunrise Banks is Member FDIC.
Atlanta, Ga.-based CetoLogic provides software solutions and analytics to financial institutions and retail organizations. CetoLogic proudly services the needs of more than 1,500 clients in 50 states and Canada by providing “Smart Solutions that Make Dollars and Sense.” CetoLogic is the designer of C3 Financial, a web-based cash forecasting and management software. CetoLogic also pioneered Deposit Reclassification, a retail sweep program designed to eliminate reserve balances. CetoLogic’s solutions improve earnings, efficiencies, risk management and operations.