Solution gives community banks access to automated sweep for large checking accounts; each day, the most expensive customer deposits can be swept off the balance sheet first.
Sweep Product Optimizes Cost of Funds, Enables Community Banks
To Compete More Effectively For Commercial Customers
Solution Helps Retain Larger Share of Checking Account Balances
SAN FRANCISCO, Jan. 22, 2007 – Banc Investment Group (BIG), the capital markets unit of Pacific Coast Bankers’ Bancshares (PCBB), today announced a path-breaking sweep account that enables community banks to optimize the cost of funds and compete more aggressively for commercial checking accounts.
BIG Dynamic Sweep transforms the typically manual process of monitoring large checking account balances and automatically determines interest-rate sensitivity based on the flow of funds in and out of those accounts. BIG Dynamic Sweep then adjusts interest rates accordingly to retain and capture deposit balances, while giving customers unlimited check-writing ability.
By automating the sweep process, BIG Dynamic Sweep helps banks maximize the inflows and outflows of deposits. Using advanced algorithms in the software, BIG Dynamic Sweep categorizes customers into interest rate tiers based on rate sensitivity. Each day, the most expensive customer deposits can be swept off the balance sheet first. The least expensive are swept back onto the balance sheet as needed.
BIG Dynamic Sweep is built on technology developed by The Reserve, (www.TheR.com) , a leading innovator in cash management solutions for the brokerage, banking and institutional marketplaces.
“BIG Dynamic Sweep is the first solution to enable community banks to automatically quantify the interest rate sensitivity of their most profitable customers and proactively adjust rates to retain those deposits,” said Chris Nichols, CEO of Banc Investment Group. “With BIG Dynamic Sweep, community banks deepen relationships by satisfying their best customers, while having a greater ability to optimize their own cost of funds. BIG Dynamic Sweep is a potent tool that levels the playing field by allowing community banks to compete against brokerages and larger institutions offering higher rates.”
BIG Dynamic Sweep software is installed on bank workstations. Bank personnel can manage funding levels and produce a comprehensive set of reports. Login protocols ensure that only designated personnel are allowed to change interest rates and manage funding levels. BIG Dynamic Sweep ensures that customer accounts comply with Regulation D and Q.
“BIG Dynamic Sweep is a state-of-the-art platform that is secure, reliable and easy to use,” said Bruce Bent II, Vice Chairman and President of The Reserve. “The technology driving BIG Dynamic Sweep offers the same level of sophistication as those deployed by the world’s largest institutional money managers. For community banks, BIG Dynamic Sweep fundamentally changes the game.”
For more information, contact Ramu Singh, Managing Director, Banc Investment Group,
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, 877.777.0412.
About Banc Investment Group
Banc Investment Group (BIG), LLC, is the capital markets subsidiary of Pacific Coast Bankers’ Bancshares and a sister company to Pacific Coast Bankers’ Bank. Serving community banks across the U.S., BIG offers a comprehensive range of wholesale products, including asset-liability management; credit stress testing; loan purchases and sales; fixed-income securities, an array of liability products, as well as other products and consulting services. Headquartered in San Francisco, BIG can be reached at 877.777.0412, or www.bancinvestment.com.
About The Reserve
Founded in 1970, The Reserve is the leading innovator in cash management for the brokerage, banking and institutional marketplaces. In addition to launching the world’s first money market fund, The Reserve has developed a full suite of innovative cash management solutions, including the industry’s first FDIC-insured money market sweep program, diverse money market fund offerings, unique bank cash sweep services and cutting-edge enhanced cash products. Today The Reserve manages more than $65 billion – serving millions of individuals and hundreds of institutions. Additional information is available at www.TheR.com.
- Media Contact:
- Greg Berardi,
- Blue Marlin Partners
- 415.239.7826
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