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Gulya Belchuk, Direct Energy Bridget Meyer, Redbridge

You!

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$1,000,000 $500,000 Terminology

Relationships

$300,000 $175,000 $100,000

Account Analysis

Canada

Pricing Strategies

Balances

$50,000 $25,000

$10,000 Bank Regulations

Treasury Services

$5,000 $2,000

Math

Bonus Round

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Terminology What are ARP services related to?

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Terminology What does CDR stand for?

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Terminology What is an IRD?

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Terminology    

PDR RLB WLB ICL

   

Wholetail QBD CD EVS

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Account Analysis Name 5 delivery methods of bank fee information

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Account Analysis What is an Account Analysis Statement called outside of the US?

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Account Analysis What billing settlement periods are available? Monthly

Quarterly All of the Above

Semi Annual

Annual

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Pricing Strategies Current Day Reporting is charged per item viewed or per transaction available for viewing and should be added to accounts with the following activity:

A. Checks

B. Wires All of the Above

C. ACH

B and C

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Pricing Strategies Which service has the most variation in price point within banks? Account Maintenance

Checks Paid

WLBX Per Item

Online Prev Day Per Item

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Pricing Strategies Which product area has seen the largest increase in fees in the past 5 years? ACH Services

Wires

Information Reporting

Lockbox

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Pricing Strategies Name an alternative to current day reporting?

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Bank Regulations What is the regulation responsible for the creating of ECR in the US?

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Bank Regulations What year was Regulation Q repealed?

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Bank Regulations What year did banks start earning interest on 100% of deposits at the Fed?

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Math Find the error in this statement. Group / Service Name

Volume

Price

Total Cost

Enter text here.

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Math What doesn’t match? Service Group / Service Name Code

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Volume

Price

Total Cost

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Relationships What is the average length of a corporate bank relationship?

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Relationships What is the #1 reason companies change banks?

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Relationships Do you believe a corporate client should receive a substantial discount on treasury services because you have a credit facility with the same bank?

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What benefit do you believe you receive from having your credit and treasury services at the same financial institution? (17 surveyed) 1.

2. 3. 4. 5. 6. 7.

8. 9.

Financial benefit. The benefit comes from having daylight overdraft lines and ach lines rather than debt. Cash management has to be with banks willing to offer those lines. I don't have credit but for me it would be the convenience of having one point of contact. Representatives that know our business and give us quick attention. Pricing, service and good will or overall relationship. Lower fees Economies of scale No idea We have to. Wouldn’t choose to if I had a choice. Convenience

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Canada Which of the following services exist in Canada? ACH Credits

Remote Deposit

Return Reclear

Controlled Disbursement

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Canada ACH Credits – ACH is called EFT in Canada Return Reclear – Representment of a returned item is not available in Canada

ACH Block/Filters – Canadian clearing system does not use blocks or filters. The Canadian Payments Association gives corporations 10 business days to dispute the transaction and ask for refund

Remote Deposit – The Canadian government has finally allowed image clearing (Check 21) and banks are now able to offer remote deposit. TEXPO 2016 © 2013 Best Teacher Resources

Balances What balance is used to calculate Earnings Credits?

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Balances What is the amount of deposits insured by the FDIC per account?

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Balances What is the balance banks charge a ‘Deposit Insurance’ on?

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Balances “The cost of FDIC Insurance is a straight pass-through for the bank.” True or False?

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History Lesson 

FIL-33-2012 states the following:  FDIC

has received complaints from depositors that banks are charging them an “FDIC assessment” or similarly described fee

 While

banks are not prohibited for charging a fee for their own costs, the FDIC discourages banks from specifically designating that a customer fee is for insurance or from implying that the FDIC is charging such a fee

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Balances What is the formula to determine the net yield after all balance assessments and reserves?

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Math Lesson Average Ledger Balance Average Float

Average Positive Collected Balance Reserve Requirement (10%) Investable Balance

$9,029,491 ****

$9,029,491 -$902,949 $8,126,542

Stated ECR (%)

0.15%

Earnings Credits

$1,002

Insurance Recovery Fees

-$1,303

Impact to ECR

-0.19%

Effective ECR (%)

-0.04%

Net Real Earnings Credits

-$271

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Treasury Services What is POBO?

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Treasury Services What is ROBO?

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Treasury Services What is the shortest retention of previous day information that is provided free of charge by any major money center bank?

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Treasury Services What is the longest retention of previous day information that is available in the market today?

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Treasury Services What is the difference between an ACH Block and an ACH Filter?

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Treasury Services Is it possible today to originate a Same Day ACH Debit?

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$1,000,000 Question Topic Accuracy

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$1,000,000 Question Redbridge audited 100 account analysis statements from 11 different banks in 2015 for accuracy. How many errors did we find? And what was the average $ amount?

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