FIs Need to Update Overdraft Services to Meet Competitive Alternatives

New apps like Dave, MoneyLion and Earnin have made it easy with apps on your phone to access funds from your upcoming paycheck early.  When a customer’s paycheck is deposited, the advance is deducted along with fees.  The customer is in control of the choice to have the access to funds and the timing.  They can access the funds regardless of their “Reg E” status.

Consider bank overdraft services as a competitive alternative.  The customer is does not make the decision to pay an item, the financial institution does.  The customer does not feel in control.  Access is limited by regulatory transaction types of which most consumers are unaware.

The financial institution is the best able to serve customers with short-term liquidity needs with safe, integrated options.  But innovation, access and service have not changed in 20 years.  It is time for FIs to deliver liquidity and overdraft services in new ways.  Customer demand for overdraft and liquidity services from FIs has survived regulator concerns, but FIs will see their services wane if they do not offer innovative choices for customers.  That is why we offer with ODManager® and SafeLink® and other features a range of overdraft and liquidity services to access overdfraft services on a smart phone regardless of REG E status.  We enable FIs to maximize compliance, customer choice, efficiency and revenue.  Contact us for a free analysis of the opportunities for your bank.