While reading the latest installment of the Temenos Group blog, the old advertising line, "When E.F. Hutton talks, people listen," came to mind. Temenos is one of the largest producers of software for banking and finance, with over 2,000 clients across the globe, including 41 of the top 50 banks. The company, which spends 20% of its sales annually on R&D, is well-respected for its deep industry knowledge that helps customers stay ahead of a changing marketplace. When Temenos comments on an industry trend, people tend to listen. Or they should.
What the company had to say about courtesy overdraft programs may cause your financial institution to re-evaluate the solution you currently offer... or make you scramble to get one in place.
In a nutshell, Temenos Chief Compliance Advisor, Blair Rugh, stated emphatically in the blog post:
"If you do not oﬀer a courtesy overdraft program, I suggest you reconsider your decision.
Maybe your initial decision was correct for your institution at the time it was made, but possibly now that the dust has settled and the issues are better deﬁned a diﬀerent decision would be more appropriate."