800-809-2307
Four Letters. Infinite Potential.
Survival Tips, Part 1: How to Achieve Optimal Results, Pandemic or Not

Survival Tips, Part 1: How to Achieve Optimal Results, Pandemic or Not

Ensure your overdraft solution contributes to service improvements and future growth

By: Ron Jennings, Executive Vice President of National Sales & Alliances

As the industry settles into a new normal—complete with unique operational challenges and service expectations—it’s more important than ever to implement tools and resources that can boost your performance results. Here are some tips to help you both offer more value to your account holders and achieve your revenue goals.

Have a clear understanding of your options

You have choices when it comes to how you help account holders maintain their finances if an emergency or unexpected expense hits when they don’t have sufficient funds in their checking account. Some institutions may decide to implement an in-house overdraft solution that they maintain on their own; others may choose a product offered by their core provider; and others may opt for hands-off overdraft management products that utilize complex data matrices to assign user limits.

At the surface, these options initially may seem easy to manage, convenient or attractive. But if they don’t provide continuous program management recommendations, on-going advice to support successful results for the long-term and offer a guaranteed-compliant program, the outcomes can be disappointing for everyone.

Does your overdraft strategy communicate your program effectively to account holders? Are your employees empowered with confidence about its value? Are you seeing measurable improvement in your program’s performance?


Develop a reliable revenue source to support growth and service improvements

Even before the onset of COVID-19, demand for more convenient banking services was on the rise. According to a survey by TransUnion, 61% of all consumer online banking transactions in 2019 were conducted on mobile phones—up from 28% in 2014. Changes in behavior brought on by the virus have expanded reliance on mobility even more as 35% of respondents to a Deloitte study indicated they have increased their usage of digital channels since the pandemic began.

From a competitive standpoint, investments in digital banking and mobile capabilities can boost an institution’s viability in the marketplace. Other service improvements—like incorporating smart ATMs that live stream video teller support, installing virtual assistants that offer 24/7 service or updating software to improve credit and debit card functionality—increase convenience and efficiencies that can go a long way toward improving account holder satisfaction and retention.

Revenue from a high-performing overdraft program can enable institutions to update existing systems or acquire new products that improve overall operations and the account holder experience. For example, with a revenue increase of $500,000 a year, one New England-area financial institution was able to complete a core conversion, offer a mobile application to give account holders more convenient access to their accounts and add a rewards component to its debit card program.

Another institution in the Northeast expanded its business lines while keeping fees low, thanks to a significant increase in non-interest income. And another was able to implement new services including remote deposit capture, online loan applications and mobile bill pay with the increased non-interest income its overdraft program provided.

Are there product, service or infrastructure improvements that could enhance the way you do business and serve your account holders? Does your overdraft program offer sustainable revenue to help fund the service improvements necessary to stay competitive?


Utilize comprehensive training to strengthen mission-driven outcomes

Fully trained, confident employees are key to successful overdraft program results. If your internal trainers don’t understand the value your program brings to account holders who face occasional financial difficulties, lack access to the latest regulatory updates, or are unable to instill confidence in staff to ensure consistent explanations about program details, your performance and service levels could suffer.

The leadership of one Midwestern financial institution realized that not all employees accepted the value of the institution’s overdraft program. In fact, some individuals even had a tendency not to offer the privilege to account holders, based on their own biases. Changing that negative mindset became a goal for the institution because of its philosophy that product decisions should be made based on what was in the account holders’ best interest, not employee opinions.

With the help of a structured, in-person employee training program that focused on key aspects of how a consumer-focused overdraft program should work, the negative feelings diminished. Access to live remote trainer support and customized training manuals that spelled out how a properly managed program can benefit both the institution and its account holders increased employees’ confidence. Additionally, incorporating role-play exercises into the training curriculum reinforced their ability to effectively explain proper program usage.

Are you relying on internal employees to develop your training program? Do you have a plan in place for keeping the information and training methods they utilize up to date? Do you have a strategy for what you would do if your designated trainer leaves your organization?


Avoid leaving your overdraft program potential to chance

The potential for improvement in revenue, account holder service experiences and employee knowledge and confidence can be amplified substantially when you partner with a proven expert that has completed thousands of successful program implementations.

Stay tuned for Survival Tips, Part 2, which will focus on how maintaining compliance standards and utilizing technology and program management techniques effectively will help you achieve even greater performance results during the pandemic and lead to sustained success in the future. In the meantime, here are some additional examples of successful overdraft program results.



ABOUT 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.

 

100% 12 months 14 years 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 agreements alerts Americans analysis analytic Analytics announcement ask the expert Assistance ATMs Attendees attorneys attracting talent auto loans 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 brand loyalty branding Bryan Hanks budget budgets bundling business business culture business environment business practices business processes business strategies calendar card processing cardholders career advice Career Goal CARES Act case studies Case Study cash CDC CEO CEO onboarding certainty CFPB Challenges change charitable Checklist Cher Cheryl Lawson Choose Chris Karstens civil litigation claim clarity class action class-action lawsuit Classroom clients Cloud Cohron collections CommFirst Federal Credit Union commitment committed Communication communications communities community community banks Community Outreach Referral Program Competition Competitive Complaint Compliance compliance examinations compliance risks compliant condition conduct Conferences confidence connection Consistency Consistent consultant Consultation consultative consulting Consumer Consumer FInancial Protection Bureau consumer protection Consumer-focused Consumers Contactless Contactless cards Contingency Contingency Pricing contingency-based contingency-based fees Contract Contract Analysis Contract Negotiation contract negotiations contract negotiator Contract Optimizer Contract Renegotiations contract review contract staffing Contracts Convenience core processor contracts Cornerstone Credit Union League coronavirus corporate culture corporate governance cost costs Courtesy Pay COVID-19 CPE credits Credit Card credit card contracts credit card processing credit cards credit report Credit Union Credit Union Vendor Management credit unions crisis Crissandra Fry CSS culture customer customer experience customer service customers CUVM cyber security Damian Data Data Analytics database Deal debit debit card contracts debit cards Debt deceptive Decisions Demand Letters Department of Labor Deposit deposits Development Dick Miller digital digital wallet directors Disclosed disclosures discounts Discussion Dodd-Frank Act dollars donation Donna Sumrall Dynamic earnings Economic economic recovery economy Education efficiency studies election Email Emergencies Emergency employed employee employee retention employees EMV migration enchancing productivity enforce enforcement Engagement environment Errors evaluation Evolve examiners executive search Expectations Expense expense management expense reduction expenses Experience Experiences Expert expert negotiations expertise Experts expire Facilitators families FastTrack FDIC Federal Reserve Federal Reserve Board fee Feedback fees Financial Financial Institution financial institutions financial security financial services financial stability Financial Worry FinTech Fixed limits Fixed-limit Floyd's Forum Forrester Franklin First Federal Credit Union Free Analysis full disclosure Fully Fully Disclosed fully disclosed overdraft program fund funds future Gen Z Generating Income generating leads generation Generation Z Gift Gil Johnson global Goals governance government government agencies Greenwood Credit Union Grow growth guidance Gym Halloween Hammond Happiness health Heartland Tri-State Bank hiring HKW Holiday Holidays Houston Area Food Bank Houston Livestock Show and Rodeo HR HR policies Hubur human capital human resources Implementation implementing important Improved improved efficiencies improved results Inc. incentives income income enhancement Industry Innovate Innovative in-person Institution interest rates interests internet banking services 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 JMFA team Joe Marsh John Cohron John M. Floyd John M. Floyd & Associates judicial justification Kelli Silvernale NCUA Kelly Flynn Kennedy knowledge law lawsuits Lawyer leaders leadership Learn Learning Legal legal risk legislative lending program Lesson leverage Limit Limits Literacy litigation litigators lives loans local Long Term Long-Term lost revenue Maggie Thompson Maintenance manage Managed management Mark Roe marketing marketplace Mary Soergel MasterCard matrices Matrix Matrix-based measurable measurable results meeting Member Members mergers Midwest Region Millennial Millennials mindset minimalism minimalist Mississippi Missouri mobile Mobile Banking mobile phone app Model monetary Money Morrison & Foerster Partner mortgages Most Valuable Provider NAFCU NCUA Needs negative balance Negative Settlement Negotiate Negotiating negotiating contracts negotiator Net Operating Analysis New Decade new revenue New Year New Year's Next Generation JMFA Overdraft Privilege NOA Non-Compliant non-disclosed non-interest Non-Interest Income North Carolina NSF NSF fees Obrea Poindexter OCC Officer Oliver Ireland onboarding Online operational Opportunities Opportunity Opt-In organization 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 overdrawn Overspending pandemic Part 2 Partner partnership Paul McFarland paycheck emergency payday loans payment cards Payments Penalties Pennsylvania performance personnel physical distancing plan planning Plus4 Credit Union podcast Podcasts policies policies and procedures Policy POS Positive Swipe post-pandemic practice practices Press Release Privilege Manager CRM proactive procedure Procedures process process improvement Processing product profitability Productivity Products Professional Profitability Improvement Program Program Management programs prohibited project staffing Promotions Proposals Provider providers PwC Quality quantity Reactive reality Reassess Recruitment Services recruitment strategies reduce expenses refer referral Reg E regional director regulation Regulation E regulations regulators regulatory relationship Relationships reliability remote 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 safety Sales Salesforce Satisfaction savings Scrutiny secrets Security senate Senior Relationship Manager service service agreements service contracts service delivery Services Sessions settlement shareholders Sheila Bridges Shopping social distancing Social Events social media socially distanced Software Solution South Carolina specialization speed Spending staff staff development staff spotlight staff training staffing staffing gaps staffing studies staffing study stakeholders standard Statistics stimulus payments Strategic Planning Strategies Strategy streamline Stressful study succeed Success success factors Succession plan succession planning Support survey Susan Prell system talent team team members technology technology costs technology upgrades technology utilization temporary staff term terms Text Third-Party Expert third-party providers third-party vendor contracts third-party vendors threat three Tim Strandquist Time Tools Tools and Resources Tracking Trainer training transaction transactions Transparency Transparent Travel Treats trend trends Trey Martin Trust turnkey UDAAP uncertain times unemployment unfair updates Upgrades Value Variable Variable Limits Vendor vendor agreements vendor contract negotiations vendor contracts vendor management services vendor performance vendors video violation Virginia VISA volunteer Walker Washington Washington D.C. Washington Savings Bank Webinars weeks Westmoreland Community FCU Whitney & Company Wish list women work Workshops YouTube