Revolutionizing Consumer Liquidity Management
Covering short-term liquidity needs will always play a fundamental role in the banking system. The question is how to best serve consumers in a way that is responsible, compliant and ensures that people have the ability to repay the liquidity provided to them. And, even more importantly, community financial institutions will win when they allow consumers the choice of which short-term liquidity option makes best sense for them. Overdraft protection is a valuable and responsible service—when it’s done right.
That’s where Velocity’s Consumer Liquidity Engine™ comes in. Our proprietary algorithm assigns customized overdraft limits, based on your account holder’s ability to repay. Most overdraft programs offer the same overdraft limit to all of their customers or members, regardless of their transactional history or income. Intelligent Limit System dynamically adjusts the consumer’s limit up or down in response to transactional and deposit activity to assign an overdraft limit that the consumer is able to repay, mitigating risk to your financial institution and your account holders. Financial regulators are increasingly looking at ability to repay as the gold standard for short-term liquidity.
Once Intelligent Limit System is implemented, our team has the necessary data files in order to easily activate our consumer loan platform, CashPlease, if your financial institution wishes to offer various liquidity options to your account holders. Intelligent Limit System and CashPlease work in tandem across the Velocity Intelligent Platform, assigning a total short-term liquidity limit across both products. Your financial institution will not incur additional short-term liquidity exposure by choosing to offer both overdraft and short-term loans. And by reducing account holders’ overdraft limit by the amount of their short-term loan, it helps to prevent them from falling into a financial ditch from which they can’t easily recover.
- Your account holders had individual limits based on their ability to repay?
- You had a provider that pays more than lip service to compliance?
- Overdraft protection was viewed as a valuable service, rather than a penalty?
Easily integrates with all core systems and adaptable if you should need to change core vendors.
Proven Managed Limits
Provides ability to deploy proven managed limits where 99%+ of monitored overdraft events with a limit greater than zero repay the negative balance.
Manage Risk & Decrease Charge-Offs
By better serving depositors who have demonstrated an ability to repay at higher overdraft limits, there is a potential to increase your overdraft revenue and decrease charge-offs, while providing better service to your account holders.
Program Performance Analysis
Our data science team provides multiple points of peer data on Reg. E, waivers, refunds, attrition, paid item amounts, usage, deposits and more, with recommendations as needed for adjustments to the customized limit logic.
Access to Experts
Velocity maintains a knowledgeable and seasoned staff with decades of experience in compliance, operations and finance across thousands of community banks and credit unions.
Professional, Ongoing Training
Training materials, online webinars, on-site professional trainers and group training with your peers are available for your front line, operations staff and executives.
We look outside the typical overdraft box, and offer features such as deposit trending, predictive attrition analysis, and normalizing deposits for windfalls and one-time events.
Easy-to-navigate features, friendly software interface, ability to build reports in a flexible manner utilizing unique data points and much more.
ILS reports provide actionable information for management, operations and the regulators. Create simple custom reports to reduce IT department workload and obtain access to real time dashboards of key metrics to monitor the health of your overdraft program.
Prompt, Responsive Service
You will receive access to prompt, responsive support staff anytime – even outside normal business hours. Our support team is entirely US-based and fully employed by Velocity Solutions.
Our team has specific knowledge of checking account relationships, short-term liquidity, overdraft services, data science-supported limits, regulatory knowledge and overall industry data for comparison.
Works Seamlessly with CashPlease
If your financial institution uses both Intelligent Limit System and CashPlease, our platform extends a total liquidity limit across both solutions, based on an individual’s ability to repay. This eliminates additional liquidity exposure to your institution and your account holder.
Through our partnership with DoubleCheck, you have the option to send alerts to your account holders, empowering them to choose which transactions are paid and which are returned.
Ability to Repay
Our proprietary algorithm reduces financial institution and consumer risk by assigning customized limits to overdrawn accounts, based on ability to repay, mitigating risk to your account holders.
Strategic Refund Module
Our system calculates and assigns a “Refund Risk Factor” to all refund-eligible accounts. The Refund Risk Factor is proprietary to Velocity Solutions, allowing our client financial institutions to set their internal parameters for the number and dollar amount of the refund in accordance with their internal refund policy.
Read this article co-authored by Joel Schwartz, Founder and Co-Chief Executive Officer of DoubleCheck Solutions, and Christopher Leonard, Velocity CEO.
Hear some of our financial institution clients talk about their experiences with Velocity’s Consumer Liquidity Engine, the platform on which our overdraft solution (Intelligent Limit System) and our small-dollar loan solution (CashPlease) work together to mitigate risk for both the financial institution and the account holder.
In this new white paper, Velocity’s CEO points out the real truth about what the big banks are doing. From the headlines, you’d think they’ve all eliminated overdraft fees, but that’s just not true.
Industry pundits prognosticate on how overdraft is going away, and create the impression that all consumers detest overdraft and want the service to end. In this article, Christopher Leonard explains that while changes may occur, overdraft is not over.
Is your financial institution offering only static, one-size-fits-all overdraft limits? Giving every account holder the same overdraft limit means you’re working with an UNMANAGED program and limiting your ability to manage charge offs and address risk.