Overdraft Management: Our 'Responsible Approach™' Defined

Posted by Jeff Harper, President, BSG Financial Group on Aug 31, 2015 2:12:00 PM

We often refer to our 'Responsible Approach™' in the management of account holder overdrafts. Let us explain...

BSG Financial Group built our overdraft software CourtesyConnect®/CourtesyLimit™ (CC/CL) with an emphasis on financial institution and account holder protective practices. This "Responsible Approach™" to overdraft management allows your financial institution to offer overdraft protection in a compliant and customer-friendly way.

CourtesyConnect®/CourtesyLimit™ is a program that was truly built by a banker for bankers. The software incorporates a CRM platform to help your institution provide higher levels of communication to account holders while assisting them in managing their short-term liquidity needs. It's not often a solution comes along that can have such an enormous effect on increasing account holder satisfaction, while also generating income for your institution. 

The caveat: This program must be managed responsibly.

Dynamic Overdraft Limits. With CourtesyConnect®/CourtesyLimit™ financial institutions can offer an overdraft service in a consistent and fair manner, in complete alignment with all federal regulatory guidelines. For instance, in addition to counseling financial institutions on successfully obtaining Reg E opt-ins, the program offers dynamic overdraft limits for each account holder based on account algorithms, analyzing the person’s ability to repay the overdraft. This feature directly addresses the FFIEC 2005 directive that states, “Institutions also should monitor these accounts on an ongoing basis and be able to identify consumers who may represent an undue credit risk to the institution….” It is a safeguard that continually and automatically assesses risk.

Dynamic Communications

Dynamic Communications. Accompanying dynamic limits is CourtesyConnect®/CourtesyLimit’s dynamic communications, which helps institutions customize messaging via letters, calls and emails to account holders based on their current situation (i.e., debit denials, overdrawn balances, days overdrawn and repayment capacity). Again, the goal is to address regulatory concerns by assessing the consumer’s ability to repay, communicating early and often, and establishing a repayment plan.

Topics: Overdraft, CourtesyConnect, Responsible Approach