Special Rescue Initiative for Banks Announced by ABCS to Coincide with Regulation Q Repeal

A new initiative, which is being called a “revolutionary liberation of business checking,” has been announced by Advanced Business Checking Solutions to coincide with the repeal of Regulation Q, which will now permit interest on business checking
By: Advanced Business Checking Solutions
 
Feb. 10, 2011 - PRLog -- A one trillion dollar “Rescue Initiative” for banks, driven by  a dynamic new management program called Full Value Reserve,  has been launched by Advanced Business Checking Solutions to coincide with the July 21, 2011 repeal of the federally mandated Regulation Q, which for the first time since the Depression will permit interest on business checking.

“The timing for this rescue initiative could not be more critical, nor the opportunities for those banks who act now more exciting,” says John Hamby, CEO of the company he founded two years ago to help banks develop more dynamic service paradigms than they currently employ to  better serve their commercial customers. “What we have here is virtually a revolutionary liberation of business checking.”

The FDIC, according to Hamby, has also extended separate unlimited coverage only on non-interest-bearing deposits through December 2012. As with the repeal of Reg. Q, this major regulatory change creates an unprecedented opportunity for banks—in this case to structure highly functional, non-interest, earnings credit-driven hybrid products for their most prominent business checking prospects and customers.  

At the present time, one trillion dollars is swept daily from business checking accounts or held elsewhere in investment vehicles outside of the nation’s banking community. The Full Value Reserve rescue initiative developed by ABCS provides banks with an extraordinary ability to reclaim those sweeps and investments and to retain those deposits. It also provides businesses with unparalleled management and control over the common ‘in lieu of interest’ philosophy of tax deferred earnings credits that businesses and banks historically prefer.

“We are delighted to bring our revolutionary Full Value Reserve to the marketplace at one of the most auspicious periods of change in business checking,” Hamby says. “With this rescue initiative, banks will be empowered to promote enhanced business checking functionality to their customers. They will deliver improved accountability and transparency, which will help to develop new client relationships, command higher balances, and recover balances now being swept. In addition, the initiative will accommodate and encourage service commencement, anniversary and appreciation bonuses and minimize the need to pay taxable and less desirable hard dollar interest to business customers.”

Seeking Better Relationships

Businesses are demanding improved functionality, fairness, accountability and transparency in the products and services they receive from banks, according to Hamby. A recent survey conducted by J.D. Power & Associates indicates that 66% of bank customers nationwide are willing to consider changing all or part of their banking relationships, given sufficient reason to do so.  

The repeal of Reg. Q and the introduction of ABCS’s Full Value Reserve provide compelling and tangible justification for prospects to switch relationships and for existing customers to grow business checking deposits.

“The emergence of such a win-win product paradigm is destined to gradually replace the zero sum design of much of the current business checking offerings,” Hamby suggest. “Providing market-sensitive value to businesses for all funds, while at the same accounting for all services rendered, will provide what I call the ‘fair-dealing bedrock’ for this new paradigm.

Hundreds of thousands of vibrant businesses, which represent the essence of the free enterprise system and account for the core of new jobs and much of the hope for economic recovery, have an opportunity now to realize new  checking products that emphasize soft dollar earnings credits but earn hard dollar interest when needed.

A Clear & Comprehensive Record

Full Value Reserve is an earnings credit management program that helps banks to easily and flexibly accommodate and expand their array of services eligible for earnings credits mitigation, particularly those with high costs that are not easily digested by typical core account analysis. Full Value Reserve is an internet-based application managed by state of the art ‘cloud’ technology that provides earnings credits tracking and delivers a clear and comprehensive record of customer directed application and retention of earnings credits activity.

“The aspirations of businesses to pay banks lower out-of-pocket fees can now become a reality. Trust fees, investment services fees, merchant services fees, loan fees and even loan interest are possible subjects for mitigation or elimination,” Hamby explains. “With Full Value Reserve, individual banks, including the smallest, are empowered to easily expand their traditionally narrow list of services eligible for service fee and/or interest mitigation.”

ABCS recommends that banks and businesses maximize ‘soft dollar’ tax differed earnings credits as a more valuable storehouse of value and preferred medium of exchange by extending indefinitely the life of unutilized earnings credits. The buildup of earnings credits establishes a bond that deters business account attrition. Long-term accumulation is very attractive to businesses with seasonal cash variability and for more substantial earnings credits applications.  Full Value Reserve will allow banks to select a universal earnings credits expiration policy which can be further modified for individual customers. For further information on the Full Value Reserve rescue initiative, contact Advanced Business Checking Solutions.

About Advanced Business Checking Solutions

Advanced Business Checking Solutions (ABCS) is dedicated to helping banks create a more dynamic sales and operations environment by strategically integrating commercial checking and fee income growth strategies. ABCS has developed a line of software products and analytical tools and provides hands-on analytical and sales assistance to enable banks to grow income, build customer value, and strengthen banking in communities across the nation. The company’s “Full Value Technology” platform expedites a bank’s analysis of commercial checking accounts and the development of new concepts and presentations for current and prospective customers in concert with their present core processing systems.

About John Hamby

ABCS president and founder, John Hamby, has more than 40 years of banking experience. He has developed numerous creative solutions to meet the needs of banks and businesses, including the most powerful check clearing system in the industry. He has demonstrated his passion for progressive, imaginative and effective banking as Manager of interbank relationships at a large regional bank, as a member of the American Bankers Association’s Community Banking Executive Committee, as a long-term president of a dynamic community bank, and past president of the Connecticut Bankers Association. John holds a B.A. in Economics from Columbia College and an M.B.A. in Banking from the Columbia University Graduate School of Business. He has served as an adjunct faculty member at the University of Hartford, University of Rhode Island and Quinnipiac University.
End
Source:Advanced Business Checking Solutions
Email:***@comcast.net Email Verified
Zip:06023
Tags:Regulation Q Repeal, Business Checking, Full Value Reserve, Fdic, Banks, Banking
Industry:Business, Financial, Banking
Location:Berlin - Connecticut - United States
Account Email Address Verified     Account Phone Number Verified     Disclaimer     Report Abuse



Like PRLog?
9K2K1K
Click to Share