ATLANTA–The $1.1-billion Advia Credit Union has reduced its Federal Reserve balance from $27.5 million to zero using software from CetoLogic, according to the company.
CetoLogic said the Parchment, Mich.-based credit union used its Deposit Reclassification solution to move the funds that had been “tied up” with the Fed, where minimal interest was being paid. Using Deposit Reclassification, CetoLogic said Advia CU turned to the Regulation D retail sweep program that reclassifies transaction accounts as savings deposits, which are not subject to reserve requirements.
“We sought to reduce our reserve requirement without impacting our membership,” said Jeff Fielder, EVP- Finance at Advia, in a statement. “CetoLogic’s Deposit Reclassification proved to be an effective tool in this regard, as it enabled us to convert a $27-million non-earning asset into earning assets.”
Following the implementation of Deposit Reclassification, Advia Credit Union began working with CetoLogic’s sister company Ceto and Associates, a management consulting firm, to further strengthen its profitability through its revenue enhancement solution, Market View, according to the company.