A recent Retail Banking Trends and Predictions report details a number of developments that banks and credit unions can prepare for and stay on top of this year. And fortunately, a number of these trends can be addressed with a fully disclosed overdraft program and proactive vendor contract negotiations.
Overdraft Service That Delivers on Multiple Levels
Offering a fully transparent overdraft service such as JMFA NEXT GENERATION OVERDRAFT PRIVILEGETM to account holders gives your bank or credit union the opportunity to stay ahead of many of the year’s projected advances.
Trend: Removing Friction from the Customer Journey
The great news for community banks and credit unions is that a focus on human connection and delivering exceptional service — a typical differentiator for community-sized financial institutions — is what will win account holders over. A genuinely customer-centric approach, complemented (but not replaced) by the latest technology, will become more important to attract and retain account holders.
A fully disclosed overdraft program ensures a smooth customer journey, starting with upfront information about limits and fees. Access to the service means they’re free to use it in the event of an emergency or short-term need. By empowering the consumer with all the facts and freedom of choice, this type of overdraft solution virtually eliminates end-user surprises, confusion, and dissatisfaction. And a seamless, automated process means that your staff isn’t left to manually approve overdrafts or rely on complex algorithms to define individual limits.
Trend: Finding and Training New Talent
As financial institutions continue to engage in a “war for talent,” properly training those highly skilled individuals you recruit will become increasingly important. Whether you’re training new personnel or keeping staff up to date on the system, JMFA offers ongoing training and support.
Access to online continuing education opportunities can keep you informed on the latest overdraft developments and strategies while you learn from the comfort of your workspace. JMFA Academy goes one step further with free in-person sessions facilitated by our overdraft experts. Attendees receive one-on-one assistance and peer-to-peer discussions of real-world situations designed to help you deliver the best overdraft service to your account holders while remaining 100% compliant.
Trend: Improving Multichannel Delivery
Technology will be necessary, not to replace brick-and-mortar branches but rather to support front-line staff in providing advice and support. Account holders want that face-to-face interaction and will appreciate speaking to a human in certain instances rather than trying to navigate a mobile app for information.
We offer communication materials and training to help your employees discuss the program in a compliant, easy-to-understand way. This also helps aid in delivering the aforementioned frictionless customer journey, as clients like First Century Bank have experienced firsthand.
Long-Term Growth and Innovation from Service Contracts
It’s easy to get caught up in the day-to-day business when it comes to your vendor contracts. Why not find out if there are hidden savings you’re missing out on by leaving negotiating contracts with the experts? The savings could help keep your bank or credit union on pace with the biggest technological developments and much more.
JMFA Contract Optimizer offers an easy, turnkey process: we assess your current contract(s), project how much we could save you by renegotiating (or using another vendor) and engage in professional negotiations with vendors to secure you the best deal. Best of all, our fee is contingent upon the savings we find you, so you know you’ll always come out ahead. The savings you achieve could help you stay ahead in areas such as:
Trend: Expanding Digital Payments
The demand for faster payments using a number of digital platforms will grow in 2019. With JMFA’s numerous connections to vendors of all kinds, as well as our in-depth knowledge of their contracts and pricing, adding services like digital payments can be more affordable than you think.
For many of our clients, contract negotiating means saving on services they already have as well as securing new technology at an exceptional price to keep up with today’s increased demand for high-tech services. In the case of TheBANK of Edwardsville, we secured mobile banking and smartwatch banking as a single, lower-priced line item. This, in turn, helped allow the bank to offer a top-of-the-line Internet banking product (which was previously out of its budget) to its account holders.
Trend: Investing in Innovation
According to the Retail Banking Trends and Predictions report, 2019 promises to be the year of “doing” instead of “talking about,” as financial institutions focus on serving account holder wants and needs.
Innovation, however, takes capital. If your budget suggests you don’t have enough to offer an innovative product or solution, examining your vendor contracts may change your mind. The Bank of Marion was pleasantly surprised when JMFA found more than $1.5 million in savings across three of its vendor contracts. They used their savings dollars to invest in mobile and online banking technology upgrades to provide a better account holder experience.
With the year already in full swing, now is the time to determine how your institution will stay in front of banking trends headed our way. A fully disclosed overdraft program and a third-party review of your vendor contracts offer two ways to do just that — and so much more.