By Mark Roe, Executive Vice President of National Sales
Lately, there has been much criticism about overdraft programs, stemming from the lack of transparency regarding fees, inherent in do it yourself or algorithmic overdraft strategy. When it comes to providing services that help your account holders effectively maintain their finances, an easy-to-use, easy-to-understand approach is always the right way to do business.
Prepare for a new normal in service delivery expectations
While the uncertainties continue, consumers most definitely have different expectations when it comes to their financial service experiences. To capitalize on the changing market, digital service providers continue to strategize ways to further increase their footprint. In this environment, financial institutions that fail to provide responsible, supportive services that positively impact their account holders’ well-being may face reputational risks and an erosion of trust among those account holders.
So how can your bank or credit union align your overdraft philosophy with growing expectations for fully transparent, well-communicated and consumer-centric services?
Amid all the talk about additional oversight of overdraft practices, the case for a fully disclosed, consumer-focused overdraft solution remains clear. When your account holders experience a situation where they don’t have enough funds in their account to pay their expenses, an overdraft service can be a reliable and valuable way to ensure their payments are being made.
Set the stage for a win-win
With the right strategy in place, access to a right-on-time overdraft service can heighten account holder confidence in their financial stability and strengthen their connection with your institution.
Here are five ways to ensure your overdraft program makes a positive impact on your account holders in terms of value and peace of mind:
Minimize risk and strengthen relationships
To avoid risk, focus on providing transparent resources like a fully disclosed overdraft solution that supports your account holders. You’ll not only save yourself unnecessary stress caused by ongoing news cycles, but you will also eliminate the negative impact that inadequately disclosed policies and fees have on your account holders.
As you consider how best to strengthen account holder relationships going forward, be mindful that transparency is crucial for creating a successful overdraft strategy—one that meets all regulatory and market requirements and provides the support your account holders expect.
ADVANTAGE, powered by JMFA, can provide guidance for your overdraft-related compliance concerns. We will help you implement an effective strategy to help you meet or exceed your performance and service goals with confidence.
ADVANTAGE is one of the most trusted names in overdraft consulting, focused on communication, transparency and improving client outcomes with a Written 100% Compliance Guaranteed overdraft service. We can help you deliver measurable results with proven solutions. To learn more, please contact your local ADVANTAGE representative or call us at (800) 809-2307.