Overdraft Privilege - Efficient and Fair Overdraft Privilege Program

  

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Intense regulatory and economic pressure means that financial institutions, already operating leaner than ever, must become even more innovative to remain profitable. An integrated, automated overdraft program frees up more than 90 hours a week of staff time for other work and ensures that financial institutions implement their overdraft programs fairly and consistently.

The long-standing Pinnacle Financial Strategies – Jack Henry and Associates partnership offers financial institutions an integrated Bounce Protection program that reduces time spent on managing overdrafts in both the front and back office. Employees and managers are able to focus more on account-holders, service delivery and activities important to the business of banking.

Financial institutions can spend up to eight hours a day working on overdrafts — the equivalent of a full-time employee. It’s not just the back office handling overdrafts. It also occupies branch manager, teller, and platform time.  When the decision on whether or not to cover an account-holder’s overdraft rests with individual employees, the institution and the consumer face the possibility of deviations from policy, personal preferences, human error, or even discrimination.  With an automated, integrated system, overdraft coverage decision-making is standardized and an institution’s overdraft privilege program criteria are applied consistently to all account-holders.

Pinnacle’s Overdraft Privilege Program — Bounce Protection — is a customer retention program that generates revenue as a “pay as you go” service. Because of its integrated automation and standardization capabilities with Jack Henry, the Bounce Protection module is able to streamline the return item process, reduce time spent on approving and paying exception items, automatically handle all customer communications, ensure fair and consistent application of overdraft program criteria, as well as manage and control risk.

Standardization in decision-making also reduces the amount of fee waivers generated throughout the institution. Pinnacle clients typically maintain their NSF fee waivers between 5-8%, far lower than financial institutions that run an in-house overdraft protection program.

The Bounce Protection module provides automation for the implementation, tracking, and management of Pinnacle’s ODP programs by:

• Reducing exception item processing by 50%

• Producing daily management overdraft reports and customizable letters that inform overdrawn customers of their status

• Automatically assigning, suspending and restoring overdraft limits according to the institution’s established policies and procedures

• Processing charged-off accounts and off-the-books collections

• Maintaining historical databases of detailed customer account information

Pinnacle’s Bounce Protection includes an end-to-end Performance Review Process that measures program efficiency in the areas of operation, administration, compliance, internal reporting, customer issues, and, of course, revenue enhancement. Clients rely on our Performance Review process to keep their programs running efficiently.