American Bank of Texas (ABT) has implemented a deposit reclassification solution ReserveLink from Fiserv, a provider of financial services technology solutions, to generate additional investment income by enhancing the management of reserve requirements and non-earning assets.

ReserveLink is a multi-platform software application that enables reserve reduction through deposit reclassification. By sweeping transaction account balances into non-transaction accounts, ReserveLink transforms idle funds (non-interest bearing Fed account balances) into investment dollars.

Moreover, ReserveLink provides the sustained sweep efficiency on the market and is compliant with the Federal Reserve’s recent guidance on deposit reclassification.

In addition, ABT also uses merchant source capture and consumer source capture solutions from Fiserv.

Rich Bateman, core systems administrator at American Bank of Texas, said: “Within one week, Fiserv was able to implement the ReserveLink solution and allow us to immediately optimize our reserves and automate our deposit reclassification processes. Plus, Fiserv was able to integrate with our AS/400 platform – fully automating the process, creating a true ‘lights out’ solution.”

Brian Jorgenson, director of cash and logistics product management at Fiserv, said: “Like American Bank of Texas, many community banks are re-evaluating their deposit reclassification systems due to recent changes to Federal Reserve guidelines. ReserveLink from Fiserv is fully compliant with these new guidelines and typically achieves sustained sweep efficiency in excess of 90%.”