BSG Financial Group, a provider of revenue-enhancing programs and compliance solutions for financial institutions nationwide, announced today that Basking Ridge, N.J.-based Affinity Federal Credit Union has selected the company’s CourtesyConnect®/CourtesyLimit™ discretionary overdraft management technology in order to better meet its members’ short-term liquidity needs, while also mitigating the credit union’s own financial risk.
Affinity Federal Credit Union - the largest credit union headquartered in the state of New Jersey, proudly serving the tri-state area and ranking in the top 2 percent of all credit unions in terms of asset size* - sought a long-term partner with a customizable way to meet the short-term liquidity needs of its members, while simultaneously accommodating the compliance and risk requirements of the credit union. “BSG Financial Group’s overdraft management system is just the type of cutting-edge technology we were looking for,” said Jeff MacMillan, VP Payments & Account Solutions at Affinity Federal Credit Union. “This service will help us identify changes in a member’s financial behavior and adjust how we manage their access to the program,” he said.
On a daily basis, the CourtesyConnect®/CourtesyLimit™ software automatically calculates a member’s overdraft limit based on a myriad of data points, including number of deposits and frequency, as well as length of relationship and associated accounts. Setting dynamic limits allows members who have the ability to repay the overdraft and corresponding fees to receive higher overdraft limits, while those who cannot repay have reduced or no access to the service. “The customization aspect of this service will allow us not only to better meet our members’ financial wellness needs, but also to mitigate potential financial risks,” said MacMillan.
MacMillan also explained that the CourtesyConnect/CourtesyLimit software’s robust reporting capability will help the credit union manage the service as a line of business as well as facilitate regulatory compliance. Reports include information like member usage, Regulation E decisions, overdraft channels, and debit transactions denied for reason of NSF (also known as debit denials). BSG Financial Group provides ongoing consultation and training in order to help client financial institutions interpret program data, as well as train frontline employees to communicate with members about the overdraft service and obtain Reg E decisions.
“Our discretionary overdraft solution represents a new way of thinking about overdrafts as a service that can positively impact a credit union’s income and member satisfaction efforts,” said Jeffrey Harper, President of BSG Financial Group. “We are thrilled to add Affinity Federal Credit Union to our growing list of credit union clients that are benefitting from our software, best practices and ongoing consultation.”