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A number of external financial factors are converging together in the marketplace that will impact the way your credit union does business – including its ability to grow and remain financially sound. You know all too well that margins are tight and getting even tighter.
To compensate for all these negative market influences, credit unions have been cutting costs and setting aside less in reserves to cover bad loans, and reshaping their asset/liability portfolio to boost earnings. But that strategy could backfire if their members’ credit quality starts to deteriorate and the credit union’s reserve is not adequate.
Overdraft privilege is an immediate way to increase your non-interest income and reduce your operating costs, thus positively impacting your bottom line. Not only will it maximize your performance, but it will also provide your members with a value-added service. Take a look at how your members and your credit union benefit.
Members can benefit because overdraft privilege will:
Credit unions can benefit from overdraft privilege through:
In selecting an overdraft privilege provider make sure the provider stands out from the others with a solid reputation and track record. Areas to consider are:
Already using an overdraft program? Maximize your performance with a tune up!
The financial industry is constantly changing. It is important to have your program reviewed periodically to ensure you are reaping the full benefits of the program and that the program is compliant with all state and federal regulations.
A third party consultant can help with this periodic review. When selecting a consultant, ensure they will perform an objective and comprehensive evaluation of your current program including all aspects of compliance, including Regulations B, E, Z, DD, the FTC Act and Interagency Guidance. The provider should also perform a review of your policies and a procedure to test your program’s consumer friendliness and review key performance indicators, such as income and charge-offs to make sure your institution reaches peak potential.
The real bottom line.
Implementing an overdraft privilege program or performing a review of an already established program can be a great way to reduce your operating costs, thus positively impacting your bottom line. Not only will you maximize your institution’s performance, but also you will provide your members with a value-added service.
To maximize your credit union’s performance, while giving your members a much needed benefit consider the JMFA Overdraft Privilege® program or a JMFA Overdraft Privilege Compliance and Performance Review — both true win-win solutions. You simply can’t lose. For a free overdraft privilege analysis or for more information please visit www.JMFA.com.
JMFA, a leading provider of overdraft privilege programs and is a preferred provider for more than 30 leagues and association, serving more than 2,000 financial institutions in 49 states and Central America. JMFA is also nationally recognized for training, account acquisition and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. To learn more about JMFA, visit www.JMFA.com or call 800-809-2307. You may also contact Jared Cahill, National Director of Alliances, at Jared.Cahill@JMFA.com.
May 1, 2006
7/26/2012 04:07 PM
feels like a sales pitch.
Disappointing. Is this an article that might be of help or a commercial? I say commercial.
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