Five overdraft best practices for stronger relationships
An overdraft program that follows industry best practices can help build life-long loyalty. Are you offering a responsible overdraft service that offers value?
According to the most recent survey from Bankrate1, U.S. adults, on average, have held the same checking account for 17.75 years, with adults age 55+ keeping the same account for 24.6 years, on average. Many life events can occur in that length of time, including home purchases, starting a business, building savings, and investing for the long term. And these are all life events that your financial institution can play a part in to build loyalty.
However, nothing happens overnight — sometimes, there are oversights along the way, like overdrafts. But you can have their backs in these times of need. When you have an overdraft (or courtesy pay) service that your account holders can rely on during these bumps in the road, you’re laying a solid foundation for the future.
One negative overdraft experience could cost you an account holder
People have more options than ever before when it comes to their banking needs — and there are likely a variety of offers tempting them to switch. One negative experience with your overdraft service could be why someone walks away.
In order to offer the most consumer-friendly program, you should build the service around and for your consumers. That means it should be:
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