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Your customers expect your bank to safeguard their best interests, especially when faced with expenses that exceed their balance or inadvertently make an error in balancing their accounts, which may lead to an overdraft. When it comes to providing your customers with the tools and support they need to maintain their finances when emergencies or errors occur, are you directing your time and resources toward strategies to provide successful results—for them and your bank?
1. Transparency opens the way for trust and long-term security
“A lack of transparency results in distrust and a deep sense of insecurity.”
— the Dalai Lama
Regulators have made significant changes to overdraft rules to increase transparency and protect consumers from unclear disclosures and discriminatory practices. However, overdraft programs with variable limits, based on data points account holders can’t see, often lead to confusion.A fully transparent service—with established limits explained upfront and reviewed periodically—provides customers with consistent and reliable financial security to better deal with an occasional shortfall. There is no guesswork involved as to if they have overdraft coverage and, more importantly, there aren’t any surprise fees.
2. Higher levels of service lead to stronger relationships
“The greatest technology in the world has not replaced the ultimate relationship building tool between a customer and a business―the human touch.”
― Shep Hyken
Providing a level of service which builds trust and leads to long-term relationships involves much more than determining where they plot on a data matrix. Overdraft programs based solely on analytics and data lack personalized service and value. Parameters that limit access to a safety net for some—based on undisclosed account information—don’t consider other essential aspects of a person’s overall ability to repay. Overlooking this can result in a breach of trust and threaten customer satisfaction and retention.Added in-depth employee education ensures your staff fully understand how the program works and how to explain it easily. They are empowered to build relationships with customers, better understand individual needs, and confidently provide information regarding the options you offer, and much more.
3. A compliance guarantee protects customers and your bank
“A well-executed user experience builds trust.”
― Tom Creighton
If an overdraft provider doesn’t offer a compliance guarantee and access to ongoing regulatory expertise and advice on compliance issues, they likely won’t be standing by your side if there are questions about your practices.When compliance is a top priority it means they have the expertise and resources to keep track of the latest regulatory expectations to identify potential areas of concern before they hit your radar. What’s more, they will put those resources to work to help you incorporate the necessary process and procedural changes to address any issues of concern.
No amount of automation or AI-driven technology will bring back customers if they lose trust in your bank. Make sure you offer an overdraft service that truly provides a reliable safety net your customers can depend on when they have occasional short-term needs. This strategy will also protect your bank from regulatory and legal risks and provide sustainable service and revenue. To learn more, visit jmfa.com or call 866.553.9708.