No Bounce Overdraft Service – Consulting
Managing check loss risk is often an either or choice: either limit participation and risk discrimination problems, or broadly define participation criteria and risk huge check losses.
Moebs Services’ Debit $coring® enables you to manage risk control, and prevent discrimination at the same time. Debit $coring is a patented process that empirically and ethically identifies the largest number of qualified consumers—existing account holders and new account applicants. Not a cookie cutter, one-size-fits-all tactic, Debit $coring works so well because it’s a custom fit. And it results in full compliance with state and federal regulatory agencies.
Here’s what Debit $coring® delivers:
- OD limits—($1,000 and up) that are meaningful to more account holders, like those whose typical expenses may include a monthly mortgage or a car loan.
- Low risk of check loss—generally 3% of fee revenue or less. Most overdraft programs’ losses are 10% or greater.
- Low operational costs—it’s fast, fair and efficient, so it saves your staff time.
Regulatory compliance—making sure policies are legal, fair and consistent
Managing overdraft compliance can be frustrating and time consuming. Penalties for infractions are costly and the opinions of examiners can vary from jurisdiction to jurisdiction. So how can you be prepared?
Moebs is a leading expert on overdraft compliance. And we are supported by the top compliance and regulatory law firm in the U.S. That expertise is available to you through our consulting service anytime you need it. We’ll provide you with a comprehensive understanding and a conservative interpretation of the 14 statutes, the court cases and the regulatory agency letters and comments that impact overdrafts. We will review your policies, terms, actions, documents, agreements, disclosures, notices and even your board policy to ensure compliance. Your communications with account holders will be clear and straightforward. When you make compliance a priority, your account holders will be well served. You’ll enjoy the positive results of your OD service for years to come.
Price—pragmatic strategies for greater profitability
Surprisingly, even in pricing overdrafts, price can impact demand. Price can and does function as a marketing tool. Moebs Services will make sure that at the foundation of your overdraft service is a comprehensive pricing strategy. One that functions in sync with the strategic goals of your institution and provides value to your account holders. Because Moebs Services has provided the Fed with data on service fees for the past sixteen years, we fully understand which pricing tactics will affect your ability to compete, to best serve your depositors and to generate greater net income.
Here are some benefits you’ll gain through Moebs $ervices’ pricing strategies:
- Enhanced account holder satisfaction—account holders will see the service and corresponding service fee as a value, not a penalty.
- Zero litigation risk for NSF/OD pricing levels
- Improved approval process with your Board—by presenting effective strategies, fee changes can be approved quickly and easily.
IT/Operations support—moving from strategy to performance
One of the challenges in launching a new overdraft service is integrating it with existing products, services and policies. We have found that it makes sense to review all current processes connected with insufficient fund check, ACH, and debit card processing—workflows, resources and procedures—to make sure that your OD service is as efficient and effective as possible.
Three areas we specifically focus on are:
- Overdraft processing
We will establish overdraft-processing procedures tailored to your existing core processing system, including its OD module (if available). Many mainframe systems offer features that are not being utilized; we’ll identify them. In addition, we’ll develop customized procedures to compensate for any gaps in tracking critical OD information within your existing IT system.
Moebs Services will work directly with your staff to establish a Project Plan Timeline which includes: project planning, job and task descriptions, third-party relationships, reporting processes, the qualification process, scheduling of notices and collection letters tracking OD/NSF transactions, refunds and losses and more.
With Moebs, you’ll:
- Be prepared for CFPB changes
- Earn fee income faster
- Improve efficiency and keep operational costs low
- Improve collections and reduce losses
Please e-mail us at Mike@moebs.com or call 847-615-8000 to discuss how we can identify and meet your goals.
Click here to view our Overdrafts brochure.