Our Implementation
Deposit Reclassification is a complete turn-key, hosted solution, enabling credit
unions to easily and quickly implement the solution.
Our System
Deposit Reclassification works independently of your core processor. We partition
each of your transaction accounts into two virtual subaccounts: a transaction subaccount
and a non-transaction subaccount. These subaccounts exist for reporting and
regulatory purposes only. Your reserve requirement is dramatically
lowered by keeping the maximum possible balance in the non-transaction subaccounts, which
are not reserved on.
A transaction subaccount carries a very small balance to cover day-to-day activities.
When necessary, a small amount is transfered from the non-transaction subaccount
to keep the balance postive. Bounded by Regulation D, these transfers can
only occur six times a month. Deposit Reclassification calculates the amount
of these transactions and the time they will occur individually for each member,
based on their transaction history, to maximize the efficiency of the reclassification.
We also generate your weekly FR2900 report, with you reclassified account information,
in a file format that is easily submited to the Federal Reserve.
The Set-Up Process
The first step to implementing Deposit Reclassification is to draft a disclosure
to your membership explaining the reclassification process and inform the Federal
Reserve of the upcoming changes to your reserve reporting. Once receiving the go-ahead
from the Federal Reserve, the disclosure can be mailed in the next statement cycle.
After the 30 day change-in-terms window has passed, your credit union can implement
the changes to your reserve reporting.
Each Tuesday represents the beginning of a new reporting period, thus the first
Tuesday after the changes in terms window has passed is the optimal time to implement
Deposit Reclassification.