Overdraft Fees Back in the Headlines and Staying Consumer-First

With lawmakers and the media spotlighting overdraft practices, financial institutions have an opportunity to strengthen trust, deliver smarter solutions, and demonstrate transparency.

Renewed attention on overdraft practices

With the CFPB’s overdraft fee cap repeal now in effect — and renewed pressure from lawmakers on banks and credit unions — overdraft practices are once again in the national spotlight. Financial institutions are facing fresh scrutiny over how programs are designed, communicated, and managed.

The reality is that overdraft services remain a vital safety net for many consumers, especially those who don’t have access to credit cards, savings transfers, or other shortfall solutions. But with increased attention from regulators, policymakers, and consumers, banks and credit unions need a strategy that balances access, fairness, transparency, and consumer choice.

More innovative overdraft management, backed by insights

Building a consumer-first overdraft strategy involves far more than setting a fee and sending disclosures. It requires the right policies, processes, technology, training, and communication to ensure account holders understand their options and financial institutions deliver lasting value.

At ADVANTAGE, we combine decades of consulting expertise with proprietary technology and data-driven insights to help financial institutions design programs that serve consumers and institutions alike. Our approach includes:

• Leveraging real-time analytics and market data to guide program design and fee strategies.
• Offering account holders clear, informed choices — from savings transfers to credit lines to overdraft privilege — so they can decide what’s right for them.
• Using automation and insights to monitor performance, track risks, and improve program transparency.
• Applying deep industry experience across institutions of all sizes and markets to deliver customized strategies that drive results.

This holistic approach enables banks and credit unions to stay compliant, competitive, and aligned with evolving consumer expectations.

Technology powers smarter decisions

Our proprietary overdraft software works hand-in-hand with our consulting expertise, making programs simpler, smarter, and more effective. By combining automation with data intelligence, we empower financial institutions to:

• Gain actionable insights into account holder behavior and program performance
• Make data-backed recommendations for setting and maintaining reasonable fee structures
• Access compliance-friendly reporting that simplifies oversight and regulatory reviews
• Improve operational efficiency, freeing staff to focus on serving account holders

This seamless integration of technology and strategy delivers the best of both worlds: a program that’s efficient to manage and built to serve consumers responsibly.

Turning insight into action

Consumers expect clarity and choice. Lawmakers expect accountability. Competitors are using lower fees and alternative options to differentiate themselves in the market. To maintain trust and loyalty, community banks and credit unions must take a proactive approach to overdraft strategy — one that’s transparent, data-driven, and consumer-first.

Now is the time to:

• Reassess your overdraft fee strategy and ensure it aligns with market benchmarks and consumer expectations
• Strengthen communication so account holders understand all available options
• Leverage automation and data insights to make smarter, faster, and more informed decisions
• Build programs designed to serve consumers while supporting institutional growth

At ADVANTAGE, we help financial institutions balance compliance, competitiveness, and consumer trust. By pairing deep consulting expertise with advanced technology, we deliver solutions that adapt to today’s challenges while preparing you for tomorrow’s opportunities.

Take the next step

Let’s talk about how we can help you strengthen your overdraft strategy and deliver a better experience for your account holders:

Schedule a Demo to see how our technology automates program management and delivers real-time insights to keep your institution competitive.

Request a Free Risk Assessment to uncover potential gaps, opportunities, and compliance risks in your current program.

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ADVANTAGE, powered by JMFA
ADVANTAGE is a trusted software and consulting partner for community banks and credit unions nationwide. We deliver consumer-focused overdraft solutions, compliance expertise, account acquisition strategies, and technology consulting to help institutions strengthen revenue, reduce risk, and grow market share. Learn more at advantage-fi.com.

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