Regulators have shined a (BRIGHT!) light on overdraft protection, but acting like a ‘deer in the headlights'—waiting to implement a program or running a program that has not been updated—is costing your financial institution service and income opportunities. The Consumer Financial Protection Bureau (CFPB) will likely make some changes to how financial institutions manage overdrafts, but make no mistake, overdrafts are not going away.
Managing them in a way that is optimized to put the consumer first will serve your institution well not only with regard to regulators but in revenue generation.
Implemented properly, overdraft protection programs are not to be feared; in fact, the majority of consumers say they WANT their most valuable transactions to be paid. Your financial institution can enhance account holder loyalty, and garner fee income in the process, as you provide consumers with the short-term liquidity they need.
The key is to meet (or surpass!) expectations for Regulatory Compliance; Custom Account holder Communications; and Program Automation.
Our on-demand webinar gives you insight into how the overdraft landscape may look in coming years and introduces practical ways to safely capitalize on overdraft protection now and in the future.
Key areas discussed are:
- RISK Management
- Impact of REG E on Service
- Automating Overdraft Management