The time is now to fully understand how your overdraft program works so that when the expected changes are levied the outcome will be minimal to your organization.
Let’s dissect what is occurring today and how the regulation can be a great chance to enhance the service to your customer while protecting the bottom line. Most institutions think that raising the overdraft fee every couple of years should be the extent of their program. But that is far from the truth. Ever wonder why your peers continue to have enhanced non interest income?
There are many additional factors that should be considered such as:
As you can see, this product can have various consequences and should be dedicated to one individual within the organization. They must know how the product works and what will happen when and if changes are made.
A normal organization spends a sufficient amount of time dissecting and underwriting a loan based on the amount. Why is the overdraft program any different? There are opportunities that exist with knowledge.
What better time to comprehend your overdraft program for it will be time well spent?