Customized, Managed Limits for Superior Overdraft Management
Does your current overdraft program allow people making just a few hundred dollars a month to have the same overdraft limit you make available to someone making thousands a month? How does that look to your account holders when you charge them off because they had too big of a limit? And how does it look to an account holder depositing significant amounts when that person has a transaction declined because you were trying to come up with a one-size-fits-all overdraft limit? What it looks like to us is that your overdraft program is essentially unmanaged.
Regulators are increasingly looking at ability to repay as the gold standard for short-term liquidity. Just look at their rulemaking on credit cards, payday loans and other consumer products to see that ability to repay is here to stay. At Velocity, our goal is for you to be able to look at your overdraft program and be proud of the optics as well as the improved way you actively manage revenue and compliance for this important fee income source.
What If...
- Your account holders had individual limits based on unique ability to repay?
- You had a provider that pays more than lip service to compliance?
- Overdraft could become a truly valued service for your account holders?