OD Results Differ Greatly by Compliant Bank Strategy

Regulation changes have occurred and some FIs have responded with compliant, customer-driven overdraft services, while other FI have avoided re-thinking their overdraft services after Reg E.  The result, according to banks reporting overdraft revenues to the FDIC, is that the median OD revenue growth for the top half of banks was +16% from 2016 to 2018, while the lower half saw revenues fall -10% during the same time period.

Source: FDIC - Banks Over $1B

Why?  Compliant, customer-driven services with new efficiencies are available today for implementation to meet customer needs. New digital technology enhances services and efficiencies and enables profitable overdraft alternatives. 

But FIs must understand their customer needs and use sound methods and compliance to meet them.  As the chart above shows, those that do focus on customer needs can see significant annual revenue improvement, while those that do not re-assess their overdraft services lag in both revenue and customer service.

To get our Whitepaper, "2019 Overdraft Best Practices," or start a free assessment of your compliant, customer-driven overdraft services, contact us or visit www.rcgiltner.com