Take off your banking hat for a moment and think as a consumer about reward programs. What types of rewards programs do you participate in? Why do you participate in them? Is it because you value and appreciate the rewards? Or do you just want to support a company that appreciates and values your business?
The Reg E Amendment was announced in November 2009 mandating significant changes to the ways in which financial institutions manage their overdraft programs. Pinnacle understood the potential impact this amendment could have, not just on community banks and credit unions, but also on consumers who rely on the “checking account insurance” that overdraft privilege provides. Early estimates had forecast a loss of more than 60% of fee income for financial institutions. Account-holders who were used to automatic coverage on their accounts would have to actively choose, or opt-in, for account coverage.