Three ways to improve your members’ overdraft experience

first_imgIn both good times and bad times, consumers expect their financial institution to safeguard their best interests. This is especially true when they are faced with expenses that exceed their balance or when they inadvertently make an error in balancing their accounts, which may lead to an overdraft. When it comes to providing your members with the tools and support they need to maintain their finances when emergencies or errors occur, are you directing your time and resources toward strategies that provide successful results—for them and your credit union?In a recent Gallup study, respondents indicated that having the relief they need to get through the current crisis, as well as on-going guidance and financial solutions, and easy access to those resources whenever and however needed are what they want most from their financial institution.Successfully providing reliable, convenient and safe financial services to your members is more challenging now as you juggle disruptions to in-person connections, coordinate socially distanced work environments and adjust business continuity plans amid growing uncertainty. But how you manage your service delivery strategy in order to respond to your members’ financial needs now can be pivotal to building ongoing, loyal relationships. Following are three ways you can restore your members’ financial security and provide improved services experiences as we work through the current situation and for the long-term.Transparency creates trust and long-term securityRegulators have made significant changes to overdraft rules to increase transparency and protect consumers from unclear disclosures and discriminatory practices. However, overdraft programs with variable limits, based on data points that are unknown by members, often lead to confusion.A fully transparent service—with established limits explained upfront and reviewed periodically—provides members with a consistent and reliable financial service to better deal with an occasional shortfall. There is no guesswork involved as to whether they have overdraft coverage and, more importantly, there aren’t any surprise fees.Higher levels of service lead to stronger relationshipsProviding a level of service which builds trust and leads to long-term relationships involves much more than determining where a member plots on a data matrix. Overdraft programs based solely on analytics and data lack personalized service and value. Parameters that limit access to a safety net for some—based on undisclosed account information—don’t consider other essential aspects of a person’s overall ability to repay. Overlooking this can result in a breach of trust and threaten member satisfaction and retention.Offering in-depth employee education provides your staff with on-going opportunities to gain a full understanding of how the program works and how to explain it easily. By helping them to gain confidence regarding the value of your program and giving them the tools they need to more effectively identify individual member needs and present information on the options you offer, you will empower your employees to build much stronger member relationships and experience more job satisfaction.A written compliance guarantee protects members and your credit unionIf an overdraft provider doesn’t offer a written compliance guarantee, along with access to ongoing regulatory expertise and advice on compliance issues, they likely won’t be standing by your side if there are ever questions about your practices.When compliance is a top priority, it means the provider has the expertise and resources to keep track of the latest regulatory expectations and identify potential areas of concern before they hit your radar. What’s more, they will put those resources to work to help you incorporate the necessary process and procedural changes to address any issues that might be problematic.Commitment to best practices and personalized service is key to program successNo amount of automation or AI-driven technology will bring back members if they lose trust in your credit union. Make sure you offer an overdraft service that truly provides the reliability of a safety net your members can depend on when they have occasional short-term needs. This strategy will also offer protection from regulatory and legal risks, and provide sustainable service and revenue. 3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Mark Roe Prior to joining JMFA, Mark was a sales manager in the Texas market for a major bank with headquarters on the West coast. His experience also includes managing the accounting, … Web: Detailslast_img read more

Maximize your lending success

first_imgLending can make or break a credit union—especially during a recession. Attend NAFCU’s Virtual Lending Conference to learn everything you need to help keep your portfolio strong throughout the crisis, and even gain more loans and members. You’ll acquire the best, most innovative lending practices, ideas, and strategies—along with a comprehensive understanding of how to integrate them into your credit union—so you can push through the recession in as strong a position as possible. Attend to: Strengthen your understanding of the most up-to-the-second economic and regulatory data trends affecting your lendingGain powerful techniques for improving your loan quality, profitability and balances during a recessionDiversify your portfolio by harnessing best practices for boosting business lending, attracting younger members, and engaging in loan participationsImprove your ability to avoid portfolio bankruptcies and maximize your recoveryJump-start your loan marketing program with new strategies for overcoming a world with less branch trafficDiscover the latest and most promising trends in mortgages, auto financing and credit card paymentsGet lending’s best strategies and ideas so your CU can strongly push through the recession. Attend NAFCU’s Virtual Lending Conference.Register now for special virtual event pricing! NAFCU member: $1,649 now $599NAFCU nonmember: $2,449 now $799 2SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more