800-809-2307
Four Letters. Infinite Potential.
Has Your Overdraft Program Evolved to Stay Relevant?

Has Your Overdraft Program Evolved to Stay Relevant?

By Ron Jennings, Executive Vice President

Amazon did it when they went from shipping books and CDs to offering digital devices, downloads and home automation. Netflix did it when they branched out from renting DVDs by mail to streaming entertainment of all types and developing original content. And Apple was doing it long before the first iPhone ever hit the market.


They’ve all continued to evolve with the times to stay at the forefront of tech innovations and consumer demands.


All businesses should follow their lead and pivot, adjust or realign to stay relevant in today’s competitive marketplace.


For community banks and credit unions, one way to do so is to examine the overdraft solution they’re offering by asking:

  • Is it meeting consumer needs and preferences today and will it continue to in the near term?
  • Is it offering greater efficiencies, data analysis and automation as technology grows?
  • Is it adhering to the latest government regulations and industry best practices?

If you aren’t regularly evaluating your overdraft program, it’s likely outdated. In contrast, an overdraft solution that continually evolves can be a boon for both your account holders and your bottom line.


Not all overdraft programs evolve


Some overdraft programs simply meet the status quo, while others challenge it by pushing forward, innovating and delivering a true service for both the financial institution and the consumer. These businesses that continually evolve are leaders in the industry, just like Amazon, Netflix and Apple.


Research shared at the Adobe Summit 2019 reiterates this point: business-to-business (B2B) experiences are becoming ever more similar to business-to-consumer (B2C) experiences. As Forbes elaborates, B2B buyers expect vendors to know what they want and deliver more than just supplier value.


Does your overdraft program vendor deliver more, including 100% compliance assurance, training opportunities, advanced reporting tools and measurable results? In short, are you getting a modernized program that continues to evolve with the times so you can deliver the same level of advancement to your account holders?


Many banks and credit unions have discovered the difference a modern, continually evolving overdraft service can make:

  • When one Michigan credit union was asked by its core provider why they were switching to another overdraft program, when the core provider already offered tools to manage an in-house program, the credit union CEO explained that the core couldn’t match the intuitiveness, efficiency and reporting capabilities of more updated overdraft tools.(Read more about River Valley Credit Union’s success here.)
  • Ongoing, personalized monitoring of its overdraft program and compliance expertise helped a community bank in Virginia save time, money and a lot of headaches in the midst of changing regulations regarding customer communications and messaging. Discover how the Bank of Marion’s overdraft program has thrived here.)
  • A northeastern credit union had previously used an ad hoc system for its overdrafts, which resulted in time-consuming manual processes, inconsistencies and limited revenue. Once they decided to work with an established, reliable overdraft program provider, their results soared, generating positive feedback from members and non-interest income that’s trending at $500,000.


The next generation in overdraft


Just like many other consumer products, the overdraft service experience has evolved. You can provide superior financial peace of mind for your account holders and growth opportunities.  Here are a few important aspects to keep in mind:

  • More automation, to increase efficiency among your staff and better serve your account holders.
  • More continuing education and training opportunities, from on-site training to webinars and classroom experiences, to help you maximize your overdraft program’s potential.
  • More in-depth analysis & reporting, including tools to identify greater opportunities to enhance revenue.
  • Greater compliance proficiency, with ongoing support from experts, backed by a 100% compliance guarantee.


A fresh look never hurts


The moral of the story? If your overdraft program isn’t intuitive for you or your account holders, if it doesn’t produce consistent and measurable results, and/or if you’re constantly worried about compliance violations related to its use, it probably hasn’t kept pace with the times. Taking a fresh look at the overdraft solutions available isn’t just a good idea—it could end up completely revitalizing your financial institution.


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 account holders 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 (800) 809-2307.

 



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 account holders 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 (800) 809-2307.

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 account holders 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 (800) 809-230

 

2020 40 years Academy account holder account holder retention account holder strategies account holder strategies; growth strategies; account holders Advice Agreement Analytics announcement Assistance ATMs Attendees attracting talent Automation B2B Balance Bank Bank of Pacific Banking banking services banks batching Benefit best practices board governance board member board of directors bottom line branch equipment branch profitability branding Bryan Hanks budget business business culture business environment business practices business processes business strategies career advice Case Study CEO onboarding CFPB change Charles Shanley Cher Cheryl Lawson Choose Chris Karstens Classroom clients Cloud Cohron commitment Communication communications Competitive Complaint Compliance compliance examinations compliance risks compliant Consistency Consistent consulting Consumer Consumer FInancial Protection Bureau consumer protection Consumers Contingency 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 CPE credits credit card contracts credit cards Credit Union credit unions Crissandra Fry CSS culture customer service cyber security Damian Darin Byrd Data Deal debit card contracts Debt Decisions Dick Miller digital directors Disclosed Discussion Dynamic economy Education efficiency studies election Emergency employee employee retention employees EMV migration evaluation Evolve executive search Expectations Expense expense management expense reduction expense studies expenses Experience Expert Experts Facilitators FastTrack Federal Reserve Board Feedback fees Financial Financial Institution financial services financial stability FinTech Floyd's Forum Free Analysis full disclosure Fully Generating Income generating leads generation governance government Halloween Hammond hiring HKW Holiday Holidays HR HR Consulting HR policies Hubur human capital human resources Implementation improved efficiencies improved results Inc. income income enhancement Innovate Innovative interview strategies interview tips IT contracts Jai James Jan Southern Jennifer Peoples Jim Griffis JMFA JMFA Academy JMFA clients JMFA News JMFA Next Generation Overdraft Privilege job search John M. Floyd John M. Floyd & Associates Keith Hughey Kelly Flynn Kennedy Kim Kreps Lawyer leaders leadership Learn Learning lending program Lesson Limits Linda Meyer Literacy