800-809-2307
Four Letters. Infinite Potential.
Do Your Account Holders Consider You Their MVP?

Do Your Account Holders Consider You Their MVP?

FIVE OVERDRAFT STRATEGIES THAT WILL MAKE YOU THEIR “MOST VALUABLE PROVIDER” OF FINANCIAL SERVICES

By: Richard Miller, Senior Executive Vice President of Sales

The financial services playing field is no longer level ground for all financial institutions. With increased competition from digital non-bank providers and tech giants, such as Amazon, Google and emerging newcomers, traditional banks and credit unions face new challenges every day. To stand out in the field you must focus on meeting the increasing demands for financial services that add value, convenience and stability to consumers’ lives.

For instance, in today’s transaction-driven environment, there are numerous avenues for acquiring cash in an emergency situation. Your bank or credit union is hopefully offering a proactive solution to prevent the potential of having account holders’ transactions denied when an expense exceeds their ability to pay. If not, they will potentially look elsewhere for the services they want or need. The best way to preserve their loyalty is to consistently offer them a superior service experience.

 

Transparent overdraft strategy fills important spot in your program lineup

A fully disclosed, compliant overdraft solution can be the catalyst for strengthening relationships with those who occasionally find themselves in need of additional funds. It can also create new relationships with those who are looking for a financial services provider that offers the option in case they should ever need it. Not only does this improve their overall experience, it can increase account retention and lead to growth and improved performance.

 

To ensure your overdraft or courtesy pay program is providing momentum to your service delivery game plan, make sure it includes the following strategies:

 

1.      It is designed to provide all account holders with a strong financial defense

An effective overdraft solution should provide all eligible account holders with a reliable source of funds if an emergency occurs when their checking account balance is low. A fully disclosed program provides a clear route for empowering them to make informed decisions about whether to use the service to cover an expense until their next deposit. When your account holders are confident that you are looking out for their financial well-being, they’ll have no reason to look elsewhere for back up.

 

2.      It avoids costly penalties by closely adhering to all consumer-focused regulatory expectations

Even though there are no new rules related to overdraft services currently on the horizon, the focus on protecting consumers from unfair or abusive financial practices is ever present. 

Regulators continue to review comments related to the Reg E amendment that prohibits financial institutions from charging consumers fees for paying overdrafts on ATM and one-time debit card transactions without affirmative opt-in consent. Additionally, during the past few years law firms have targeted financial institutions for such violations as failure to obtain consumer consent before charging fees, as well as:

·       utilizing misleading advertising practices that don’t disclose fees;

·       re-ordering transaction processing that results in maximizing overdraft charges; and

·       implementing sales incentives which encourage deceptive product marketing practices.

Implementing a fully transparent and user-friendly overdraft solution is the best way to avoid potential regulatory risk and legal headaches.

 

3.      It includes consistent and clear communication to strengthen service delivery

Relationships are soured when unexpected or unfair fees are assessed. A better way to maintain healthy, beneficial relationships is to offer a consumer-focused strategy that keeps your overdraft program option, fees and procedures visible through regular dissemination of prepared, compliance-tested messaging.

 

This includes effective staff training options, easy to understand disclosures, account status alerts and information about alternative services you provide.

 

  4.      It incorporates comprehensive data analytics for effective program management

Using manual reviews or software that doesn’t provide sufficient data to keep up with account activity and program results is neither reliable nor a good use of your employees’ time. Plus, it can be cumbersome and slow down your processes. Next-gen data analytics provide a more efficient, secure solution for in-depth account tracking and analysis, and up-to-date reporting capabilities. A program that provides easy access to real-time data supports more effective problem-solving capabilities that lead to better service experiences and greater program results.

 

5.      It utilizes professional coaching for overall best results

Today’s environment of changing consumer expectations and growing competition doesn’t leave much room for error when it comes to maintaining or growing market share. An experienced overdraft program provider with a proven track record of successful implementations and measurable results can help you avoid the pitfalls that can diminish your program’s service and overall performance. And ongoing consulting support can keep you updated on the latest developments and technology that will ensure you are providing the level of quality service that consumers expect from their financial institution.

 

Do you have what it takes to be your account holders’ MVP?

According to five-time NFL MVP Award winner Peyton Manning, “The most valuable player is the one that makes the most players valuable.” You can be the MVP by offering the most valuable service to the most account holders.

 

When with a situation where they need additional funds, where do they turn? By offering a fully disclosed overdraft program strategy that provides convenient, reliable service, you can make it easier for them to consider you their financial services MVP and remain loyal for life.



 

ABOUT JOHN M. FLOYD & ASSOCIATES (JMFA)
JMFA is one of the most trusted names in the industry. Whether it’s recovering lost revenue, uncovering new savings with vendor contract negotiations, creating more value, serving members better or delivering a 100% compliant overdraft service—JMFA can help you deliver measurable results with proven solutions. To learn more, please contact your local representative or call us at (832) 514-2334.

 

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 attorneys 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 CEO onboarding certainty CFPB Challenges change charitable Cher Cheryl Lawson Choose Chris Karstens claim clarity class action Classroom clients Cloud Cohron CommFirst Federal Credit Union commitment Communication communications communities community Community Outreach Referral Program 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 coronavirus corporate culture corporate governance costs Courtesy Pay COVID-19 CPE credits Credit Card credit card contracts credit cards Credit Union credit unions Crissandra Fry CSS culture customer service cyber security Damian Data Data Analytics database Deal debit card contracts Debt deceptive Decisions Demand Letters Deposit Development Dick Miller digital directors Disclosed disclosures discounts Discussion Dodd-Frank Act donation Donna Sumrall Dynamic economy Education efficiency studies election Email Emergencies Emergency employee employee retention employees EMV migration enforce enforcement Engagement Errors evaluation Evolve executive search Expectations Expense expense management expense reduction expenses Experience Expert expert negotiations Experts Facilitators FastTrack FDIC Federal Reserve Federal Reserve Board fee 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 funds Gen Z Generating Income generating leads generation Generation Z Gift Goals governance government Grow Gym Halloween Hammond Happiness health hiring HKW Holiday Holidays HR HR policies Hubur human capital human resources Implementation important Improved improved efficiencies improved results Inc. income income enhancement Innovate Innovative Institution interests interview strategies interview tips IT contracts Jackson Jai Jai Darden James Jamone Moore Jan Southern Jennifer Peoples Jennifer Simmons Jim Griffis Jimmy Nguyen JMFA JMFA Academy JMFA clients JMFA News JMFA Next Generation Overdraft Privilege Joe Marsh John Cohron John M. Floyd John M. Floyd & Associates judicial justification Kelly Flynn Kennedy law lawsuits Lawyer leaders leadership Learn Learning Legal legislative lending program Lesson Limit Limits Literacy litigation litigators loans local Long Term Long-Term lost revenue Maggie Thompson Maintenance manage management Mark Roe marketing marketplace Matrix Matrix-based measurable measurable results Member Members Midwest Region Millennial Millennials Mississippi Missouri Mobile Banking monetary Money Most Valuable Provider NAFCU NCUA Negative Settlement Negotiate negotiating contracts negotiator Net Operating Analysis New Decade New Year New Year's Next Generation JMFA Overdraft Privilege NOA Non-Interest Income NSF fees OCC Oliver Ireland onboarding Online Opportunities Opportunity Opt-In Organizational Health Outcomes outsourcing Overdraft overdraft compliance overdraft coverage overdraft fees overdraft practices Overdraft Privilege overdraft privilege program overdraft program Overdraft programs overdraft protection programs Overdraft Protection Service overdraft service overdraft services overdraft strategy overdrafts Overspending Partner Paul McFarland paycheck emergency payday loans Payments Pennsylvania performance personnel plan planning Plus4 Credit Union Policy POS Positive Swipe practice practices Press Release Privilege Manager CRM proactive procedure process process improvement Processing product profitability Productivity Products Professional Profitability Improvement Program Program Management programs prohibited project staffing Promotions Proposals Provider providers Quality Reactive reality Recruitment Services recruitment strategies refer referral Reg E regional director regulation regulations regulators regulatory relationship Relationships Renegotiate Renewal Reporting Reputation resolutions Resources Results Retail Retaining Employees Retention Retirement revenue revenue enhancement review Richard Miller risk risks ROI Ron Jennings Roy Roy Seifert Rules Ryan Armstrong Sales Satisfaction savings secrets Security senate service service agreements service contracts service delivery Services Sessions settlement shareholders Sheila Bridges Shopping social distancing Social Events social media Software Solution Spending staff staff development staff spotlight staff training staffing staffing gaps staffing studies staffing study stakeholders standard Statistics Strategic Planning Strategies Strategy Stressful succeed Success success factors Succession plan succession planning Support survey Susan Prell talent team team members technology technology costs technology upgrades technology utilization temporary staff term Text third-party providers threat three Tim Strandquist Time Tools Tracking Trainer training transaction Transparency Transparent Travel Treats trends Trey Martin Trust UDAAP unfair updates Upgrades Value Variable Vendor vendor agreements vendor contracts vendor performance vendors violation Walker Washington Webinars weeks Westmoreland Community FCU Whitney & Company Wish list women work Workshops