There are no one-size fits all overdraft privilege programs. Each overdraft privilege program needs to be unique to your financial institution and provide your staff with proper training. Through reasonable fees, expectations and conservative overdraft limits, your financial institution can provide accountholders with a valuable customer service they appreciate.
Hi, I’m Joe Gillen CEO and Founder of Pinnacle Financial Strategies. In the interests of full disclosure, we at Pinnacle provide community banks and credit unions with consumer-focused overdraft programs that are successful, efﬁcient, and 100% compliant. We believe that consumers deserve the freedom to choose an overdraft privilege product that is fairly administered, delivers real value and provides a genuine consumer service, and is a useful tool in dealing with unexpected financial challenges.
By Julie Story, Executive Vice President of Pinnacle Financial Strategies
As a segment of the market that is underserved by the large national and regional banks, local businesses present a wealth of opportunity for community banks.
While many financial institutions have let their overdraft privilege programs slip by the wayside after the implementation of Reg E in 2010, others have achieved success using fully disclosed, automated overdraft privilege programs. Good overdraft privilege programs provide your accountholders with stability and convenience while avoiding the embarrassment of a returned item. While not all overdraft privilege programs are the same, a specialized program that fits your financial institution provides a distinct consumer service that your accountholders value.
Accountholder satisfaction plays one of the most important roles in a financial institution’s daily operations. Recent studies have shown that there is a financial gain for institutions that get accountholder satisfaction right. According to a study by the Aberdeen Group, when accountholders are satisfied, they will increasingly:
Tags: Consumer behavior
Tags: Customer Satisfaction