TOPIC: Checking Accounts

Review of large dollar items

SVP at a bank ($2.2BUSA)

We have two different reviews of large dollar items, and are curious as to others are handling these from a risk perspective. I know a lot depends on management's tolerance for risk based on experience/tolerance with losses, but please include your asset size.

  1. As the paying bank, we review all checks over $10,000 paying against our customers’ accounts, approximately 250-350 items. All aspects of the check are reviewed including date, signatures, endorsements, any irregularities.

  2. As the BOFD, we review items over $35,000 that were sent out in yesterday’s cash letter verifying proper endorsements and deposit into the correct account, approximately 50-75 items. These items should have been verified by the teller at the time of deposit.

We are over $2 billion in assets.

    Consolidating Fraud Prevention and Management to Reduce Losses & Improve Visibility - Join us on Feb. 20

    February 20 at 12:30 PM - 01:30 PM EST
    Consolidating Fraud Prevention and Management to Reduce Losses & Improve Visibility
    Cross-Channel Analytics, Big Data, and Machine Learning to Fight Fraud

    Register now: https://verafin.com/event/consolidating-fraud-prevention-and-management-to-reduce-losses-improve-visibility/?src=cbanc

    Financial institutions are facing common challenges in combatting fraud. Adding layers of protection to detect and prevent fraudulent activity, managing your alert volume, and reporting losses can become increasingly more difficult if there are multiple detection systems across different fraud and operational teams, and ultimately leads to a lack of visibility into your true fraud problem.

    Verafin’s fraud prevention and management solution leverages big data intelligence to help detect emerging and evolving fraud trends by analyzing more than a billion transactions a week in the Verafin cloud. Our innovative cross-channel fraud analytics use machine learning and cross-institutional insights from across the cloud to reduce false positives and improve model performance. Verafin’s consolidated fraud solution includes centralized case management and reporting functionality, giving you the visibility you need to manage your fraud strategy across all channels.

    Join us for this presentation as we discuss the benefits of consolidating your fraud prevention and management functions with Verafin’s Enterprise Fraud Management platform. Learn how to reduce losses, strengthen prevention efforts across all channels and departments, and enable a full picture of fraud at your institution to drive strategic decision-making.

    Highlights of this presentation will include an overview of Verafin’s approach to financial crime management in the cloud, that leverages Big Data Intelligence, Collaborative Investigations and Visual Storytelling to help institutions keep ahead of crime, as well as:

    • Discussion on the challenges facing financial institutions to mitigate and manage fraud:
      evolving and emerging threats, growing volume of false positive alerts, siloed operations within institutions, and too many systems to manage fraud efficiently.

    • Overview of Fraud Detection solutions, including real-time prevention capabilities:
      in-clearing check fraud; mobile, in-branch, and ATM deposit fraud; wire fraud; ACH fraud; card fraud, online Banking fraud, online account takeover, and loan fraud.

    • Review of Fraud Management solutions:
      adaptive fraud alerts; configurable fraud reporting; performance dashboards and workforce management; and automated SAR creation and e-filing.

    Register now: https://verafin.com/event/consolidating-fraud-prevention-and-management-to-reduce-losses-improve-visibility/?src=cbanc

    Blob

      Last Week to Register for COMPLIMENTARY Executive Summit in Ft. Lauderdale, 2/5

      There’s no question about it: Data and Digitization are key to your financial institution's future success.

      If your institution is not developing a plan to adapt and meet consumer demands in this increasingly digital world, you risk ceding your position to other financial institutions and non-bank competitors alike.

      Attend the Velocity Solutions Executive Summit on February 5, 2019FREE to financial institution executives*—to learn proven strategies that will help move your credit union into the digital revolution by harnessing the power of big data, digital solutions and automation.

      Delivered in one power-packed day and led by seasoned presenters with decades of experience, Executive Summit topics include:

      • Digital Banking Strategies and the Regulatory Landscape
      • Leveraging Data & Digitization to Build Revenue & Relationships
      • Digital & Dynamic Data-Driven Overdraft Management
      • Big Data Profits through a Unified Platform Approach
      • The Power and Profitability of Digital Lending
      • Digital & Social Strategies for Account Acquisition

      *Includes the one-day seminar, one hotel night, your roundtrip airfare and event-related meals.

      Click here to see the agenda: http://bit.ly/2Ru4McQ

      Space is limited. Click here to register: http://bit.ly/2RxmdJx

      Click here to see what past attendees say about the Velocity Executive Summits! (video) http://bit.ly/2Rr5CH4

      Can’t attend the February 5 Executive Summit? Click here to see more 2019 sessions: http://bit.ly/2RwkyDK

      Blob

        BSA - and Banking Hemp companies in SC

        Employee at a bank ($430MUSA)

        What is your practice at your bank? What risk? Do you have an added layer of paperwork that you complete?

        Since the 2018 Farm Bill removes hemp from the federal Controlled Substance Act, makes federal grant funding available for research, Lists hemp as an agricultural commodity, adds hemp to the Federal Crop Insurance Act, confirms legality of interstate commerce, maintains regulatory authority rests with state governments, shifts federal oversight from the DEA to the USDA, and enable farmers to certify their crops as organic and to seek water rights - What does that mean for banking a Hemp company in SC?

        Anyone's insight into how you are handling banking, for instance, a hemp grower(farmer) would be greatly appreciated.

          Monitor These Data Points for Improved Financial Institution Growth & Service–Part 2

          READ THE ENTIRE ARTICLE HERE: http://bit.ly/2RjUbkv
          Or Download the PDF from the Velocity Solutions Document Center

          This article is the second in a two-part series that focuses on the importance of account holder data and how financial institutions can capitalize on it to improve account opening procedures and overall institution performance.

          It is no secret that the value of an account holder increases over the lifetime of the relationship with your financial institution — the longer the relationship with a consumer, the better chance that consumer will become profitable. But account holder profitability is heavily dependent on retention and the ability of the financial institution to maximize the time it takes to recover acquisition costs (approximately two years, according to industry reports).

          One effective way to boost account holder profitability is to increase the transactions on existing accounts. The most obvious place to start is with the preferred transactional device for everyday purchases: the debit card.

          Increasing debit card activity helps strengthen the connection between your account holder and your financial institution and can boost growth within that critical first two years.

          To start, financial institutions must analyze key account holder data points and use them as guidance in establishing procedures, especially at account opening, that will lead to increased debit card transactions.

          In the first article in this series (http://bit.ly/2C07Hzr), we focused on Data Point #1: Debit Card Take Rate. Another highly valuable piece of data your financial institution should monitor is your Regulation E Opt-in Percentage.

          Data Point #2: Reg. E Opt-In Percentage
          The importance of obtaining a Reg. E decision at account opening cannot be overstated. Without this decision, your institution cannot serve account holders who desire for you to authorize transactions that may result in an overdraft fee on ATM and one-time debit card transactions. Without this decision, some of your account holders are undoubtedly experiencing declined debit card transactions for which they probably blame your financial institution, especially if they have not made a Reg. E decision or are unaware it is even an option.

          If your data shows high opt-out rates or low opt-in rates, then there likely are many of your account holders who are unable to use their debit cards the way they prefer.

          The only way to know if you have account holders who cannot access their debit cards the way they prefer is to continually evaluate Reg. E decision percentages on a branch-by-branch basis. Talk to high-performing branch managers to learn their Reg. E procedures and replicate those actions across other branches, with the goal of having a compliant conversation designed to serve the account holder best. Likewise, if opt-in rates seem high, monitor account opening discussions to ensure employees are not using coercion tactics or being incented in any way to steer an opt-in decision.

          The Value of the Decision
          Provide periodic Reg. E training, including educating frontline staff about the value of obtaining a Reg. E decision... (cont.)

          READ THE ENTIRE ARTICLE HERE: http://bit.ly/2RjUbkv
          Or Download the PDF from the Velocity Solutions Document Center

            Monitor These Data Points for Improved Financial Institution Growth & Service–Part 1

            READ THE ENTIRE ARTICLE HERE: http://bit.ly/2C07Hzr
            Or Download the PDF from the Velocity Solutions Document Center

            This article is the first in a two-part series that focuses on the importance of account holder data and how financial institutions can capitalize on it to improve account opening procedures and overall performance.

            In today’s highly competitive environment, financial institutions cannot rely solely on growing new account openings to stay ahead of the competition. The truth is, community institutions are extremely adept at retaining account holders once they come in the door. In fact, the majority of account closures result from elements beyond the institution’s control (such as job loss, relocation, etc.).

            Financial institutions must, instead, look for ways to increase existing account transactions, primarily through driving debit card activity, which can make up for flat or even negative account growth.

            The key to doing so is to consistently monitor and measure critical account data points and then modify your procedures accordingly, especially at account opening.

            Data Point #1: Debit Card Take Rate

            Getting your financial institution’s debit card into the hands of your account holders at account opening may be one of the most important activities that happens at the new account desk. Do you know the value—the additional dollars added to your revenue—that linking an active debit card represents? (Read on for the answer!)

            The most recent Federal Reserve Payments Study shows that non-prepaid debit card transactions (those debit card payments generally associated with accounts at financial institutions) grew by 12.4 billion from 2012 to 2015, driving almost all of the growth of the larger debit card category. (The Federal Reserve Payments Study 2016.)

            Further, the TSYS 2016 U.S. Consumer Payment Study revealed that debit is the preferred payment type for everyday spend transactions, such as supermarket/grocery, gas station and discount store purchases, as well as for bill payments. In fact, the average debit card user swipes a debit card 86 times more per year now than in 2009!

            Overwhelmingly, consumers have decided they prefer to transact their daily purchases with a debit card, so financial institutions need to embrace this fact and ensure they provide their debit cards to account holders for greater service and income.

            The Value of the Take Rate

            According to Velocity Solutions client data, high-performing financial institutions must maintain a debit card “take rate” of approximately 85–90%. At this take rate, use of the debit card makes a significant impact on the number of transactions and the bottom line (cont.)...

            READ THE ENTIRE ARTICLE HERE: http://bit.ly/2C07Hzr
            Or Download the PDF from the Velocity Solutions Document Center

              Fraud Prevention and Management

              Product Demonstration
              Multi-Channel Detection, Reporting & Dashboards, SAR functionality
              January 03 at 12:30 PM - 01:30 PM EST

              Register now: https://verafin.com/event/fraud-prevention-and-management/?src=cbanc

              As financial institutions add additional layers of protection to detect and prevent fraudulent activity, managing your alert volume, tracking disputes, and reporting losses can become increasingly more difficult if there are multiple detection systems across different fraud and operational teams.

              Join us for this presentation as we discuss the benefits of consolidating fraud prevention and management functions and provide an overview of Verafin’s Enterprise Fraud Platform. Learn how to reduce losses, get a complete picture of true fraud, and meet compliance requirements for filing SARs on fraudulent activity.

              Highlights of this product demonstration:

              • Comparison of Fraud Management versus Fraud Prevention and how siloed processes and teams create inefficiencies, as fraud continues unabated.
              • Review of principles of Fraud Management including the activities that increase or decrease the likelihood of loss.
              • Overview of Verafin’s Fraud Prevention solutions for deposit, check, card, wire/ACH, online and loan fraud.
              • Overview of Verafin’s Fraud Management capabilities including adaptive fraud alerts, configurable fraud reporting, performance dashboards, and automated SAR creation and e-filing.

              Register now: https://verafin.com/event/fraud-prevention-and-management/?src=cbanc

              Blob

                Charge Off / Bankruptcy Question

                Manager at a credit_union ($934MUSA)

                I was hoping I could reach out to the group with a completely oddball question. Not BSA Related at all.

                My question has to do with charged-off accounts and bankruptcies.

                I was wondering how other financial institutions treat them... once a member/customer has caused a loss... how do you move forward with the relationship?

                Charge - Offs
                Do you close the accounts?
                Do you leave the account open so you can take payments, but limit services?
                What services do you permit, if any? Checking, savings, online banking, eServices, etc.

                Bankruptcies
                Do you close the accounts?
                Do you leave the account open so you can take payments, but limit services?
                What services do you permit, if any? Checking, savings, online banking. etc.?

                If you permit them to retain checking and savings... what do you do about the periodic statements showing loan accounts?
                Do you open a non-bankruptcy account for them?
                For the annual compliance notices... are they sent only via paper... or do you send some electronically if they opted in?

                  Upcoming Events | Big Data Intelligence, Visual Storytelling, Collaborative Investigations, and more

                  Register for an upcoming event today to learn more about how Verafin's FRAMLx software can help enhance you institutions fraud detection & anti-money laundering efforts.

                  November 7 - Using Big Data Intelligence for Big Gains in Fighting Crime
                  https://verafin.com/event/using-big-data-intelligence-big-gains-fighting-crime/?src=CBANC

                  November 21 - Visual Storytelling: See the Full Picture of Activity, Faster
                  https://verafin.com/event/visual-storytelling-see-full-picture-activity-faster/?src=CBANC

                  November 29 - 2018 Crime Trends & Technology: A Year in Review
                  https://verafin.com/event/2018-crime-trends-technology-year-review/?src=CBANC

                  December 05 - Collaborative Investigations: Connecting the Dots to Stop Crime
                  https://verafin.com/event/collaborative-investigations-connecting-dots-stop-crime/?src=CBANC

                  Be sure to check out our Upcoming Events page as we are always working on new Webinars and Product Demonstrations that can help you understand industry challenges and how Verafin can help you overcome them. https://verafin.com/events/?src=CBANC

                  Blob

                    Saving Account low rates - TIS disclosure

                    SVP at a bank ($66MUSA)

                    our savings accounts have low rates - 0.10%. We use daily balance method. Compound Monthly and paid monthly. Noticed we have several continuously low balance accounts that don't accrue any interest as when you calculate - it calculates no interest. (say on a $50.00 balance throughout the month). Should our TIS disclosure state something to that affect? It never has and has been looked at before by auditors and examiners but just wondering about this. Don't want this to crop up in the future.

                      Demo - Oct 10 | Targeted AML Scenarios to Uncover Human Trafficking

                      Human Trafficking Detection with FRAMLx
                      October 10 at 12:30 PM - 01:30 PM EST

                      Financial institutions have a critical role to play to uncover Human Trafficking activity, and protect victims of this heinous crime.

                      Verafin’s FRAMLx software incorporates third-party and open source data to enrich its targeted AML scenarios, including analysis of millions of adult online advertisements for Human Trafficking detection. By cross-referencing emails and phone numbers in adult ads, you are alerted to potential victims, traffickers and front companies within your customer base.

                      Join us for an overview of Verafin’s Human Trafficking Detection solutions, and a discussion on best practices for investigation. Learn how information sharing technology helps financial institutions work together to detect, investigate and report Human Trafficking activity.

                      Highlights of this product demonstration will include:

                      • Discuss the scale of the crime of human trafficking and the impact on victims in North America.
                      • Review of human trafficking alerts for victims, traffickers and front companies, and crime ring activity.
                      • Walk-through of smart evidence to enhance investigations including online adult advertising, visual maps, timelines, and account balance graphs.
                      • Overview of 314(b) information sharing and collaborative Human Trafficking investigations to uncover Human Trafficking crime rings, and activity spanning multiple institutions.

                      Register now: https://verafin.com/event/human-trafficking-detection-framlx-2/?src=CBANC

                      Blob