800-809-2307
Four Letters. Infinite Potential.

Helping Account Holders Maintain Financial Stability has Far-Reaching Benefits

By John M. Floyd, Chairman and CEO

As many consumers continue to face challenges regarding their financial security, unexpected situations like the recent government shutdown highlight the fact that financial setbacks can occur at any time.  According to a survey released by Bankrate.com, nearly three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings. Fewer than one in four surveyed had enough of a cushion to cover unexpected medical expenses or other emergencies.

Going into the holiday season can make this situation even more precarious for some as impulse buying and unexpected expenditures can lead to account shortfalls.

And while some may view the frequent tendency to overdraw a checking account as a lack of financial sophistication or even lack of judgment, it is important to remember that many Americans struggle with managing their finances. Without safe, basic financial services, many consumers are forced to turn to more costly, often unregulated sources.

To assist with consumer needs, easy-to-understand products that are available as a resource – such as a fully transparent overdraft program – can help account holders maintain financial stability and reinforce the value your financial institution can provide.

A fully disclosed overdraft program that clearly defines the rules by which an account holder may access an overdraft service establishes a straightforward approach of responsible use. Plus, such programs give account holders a reliable tool for maintaining control of their money and help them to avoid less attractive choices of meeting their liquidity needs, such as resorting to high interest rate credit cards or payday lenders.

There is currently much discussion about the importance of providing consumers with the products and services they want and need to conduct their financial business. And while much attention is focused on the latest technology involving mobile capabilities, it is also important to make sure you are providing your account holders with access to basic, fully transparent services that help them meet their financial obligations with no surprise fees or undisclosed rules. In the end, providing value to your account holders contributes to loyalty, which translates to continued growth for your organization.

 

12 months 2020 2020 vision 40 years abusive abusiveness Academy account holder account holder retention account holder strategies account holder strategies; growth strategies; account holders accountability Achieve achievements Advancements Advice Agreement analysis Analytics announcement Assistance ATMs Attendees attracting talent Automation B2B Balance Bank Bank of Pacific Banking banking services banks banks and credit unions batching Benefit best practices board governance board member board of directors Bob Layendecker bottom line branch equipment branch profitability branding Bryan Hanks budget bundling business business culture business environment business practices business processes business strategies career advice Career Goal case studies Case Study CEO onboarding CFPB Challenges change Charles Shanley Cher Cheryl Lawson Choose Chris Karstens claim clarity Classroom clients Cloud Cohron commitment Communication communications Competition Competitive Complaint Compliance compliance examinations compliance risks compliant condition conduct Conferences Consistency Consistent consultant Consultation consulting Consumer Consumer FInancial Protection Bureau consumer protection Consumer-focused Consumers Contingency Contingency Pricing contingency-based fees Contract Contract Analysis Contract Negotiation contract negotiations Contract Optimizer Contract Renegotiations contract review contract staffing Contracts Convenience core processor contracts Cornerstone Credit Union League corporate culture corporate governance costs Courtesy Pay CPE credits Credit Card credit card contracts credit cards Credit Union credit unions Crissandra Fry CSS culture customer service cyber security Damian Darin Byrd Data Data Analytics database Deal debit card contracts Debt deceptive Decisions Deposit Development Dick Miller digital directors Disclosed discounts Discussion Dodd-Frank Act Donna Sumrall Dynamic economy Education efficiency studies election Email Emergencies Emergency employee employee retention employees EMV migration enforce enforcement Engagement evaluation Evolve executive search Expectations Expense expense management expense reduction expense studies expenses Experience Expert expert negotiations Experts Facilitators FastTrack FDIC Federal Reserve Federal Reserve Board Feedback fees Financial Financial Institution financial institutions financial services financial stability Financial Worry FinTech Fixed limits Floyd's Forum Free Analysis full disclosure Fully fully disclosed overdraft program Gen Z Generating Income generating leads generation Generation Z Gift