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.
- 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?
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.
By better serving depositors who have demonstrated an ability to repay at higher overdraft limits, there is a potential to increase your overdraft revenue while also decreasing charge-offs, contributing to significant net income improvement.
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.
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.
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.