It’s no secret that banks of all sizes are having a difficult time making money.  In the wake of a depressed real estate market, tighter credit, and compressed margins, community banks must generate non-interest income while maintaining a high level of customer service. 

Net overdraft fee income is no longer just a supplemental source of revenue.  It represents a core income stream vital to the ongoing success of community banks.  We believe that it is important to understand and manage this asset as you would any other integral business unit in the bank.  In order to do so bankers must consider the following:

• Does your bank have a consumer friendly overdraft program?
• Is your overdraft program designed for your market?
• Is your overdraft program legal and regulatory compliant?
• Do your account holders understand the program?
• Do your employees understand the program?
• Is your bank utilizing all available delivery channels?
• How will you implement proposed Opt In or Opt Out requirements?
• Have you simplified and automated daily overdraft processes?
• Are program values properly balanced for both the bank and your customers?

ICBA has considered all of these factors and in partnership with IMPACT Financial Services, has designed a solution that works for community banks of all sizes, the ICBA/IMPACT Overdraft Solutions.  To see how it works click here.