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Address Lost Revenue and Improve Service in 2016 with a Proven Overdraft Program
Tuesday, February 2, 2016 6:30 AM

As credit unions continue to look for ways to be successful in a new year, there are many challenges, both old and new, that must be addressed to meet financial and service initiative goals. Depending on your situation, these may include selecting the right mix of technology offerings for your accountholders, assessing the potential effects of rising interest rates, or staying abreast of ongoing legislative and regulatory uncertainty.

In many cases, new challenges cause an institution to rethink how time and resources are focused. However, maintaining consistent strategies that have a positive impact on performance and provide reliable financial services to accountholders is key to long-term success.

Years ago, in an effort to meet the needs of members  and help improve revenue, credit unions across the nation turned to third-party providers, such as John M. Floyd & Associates (JMFA), to help implement a compliant and successful overdraft program. Institutions soon discovered they were not only providing a valued service to their members, they were enhancing revenue streams as well.

Over the past several years, however, regulatory guidance regarding overdraft policies and procedures began to complicate and deteriorate many overdraft programs. More recently, new consumer protection regulations and restrictions have made many existing programs outdated or obsolete. But it is still possible to recover lost revenue and provide a valuable service to your members with an overdraft solution that is fully transparent and compliant with all regulations and consumer protection expectations.

Overdraft services fill economic needs of credit unions and members

Although the economy continues to improve, maintaining healthy revenue sources is challenging for many credit unions. At the same time, consumers continue to expect their financial institution will provide them with the services they want and need. For many, this includes a product to help them maintain their finances whenever an unexpected emergency occurs or they make an error in their checking account.

As a fully compliant overdraft program, the all-new JMFA Overdraft Privilege enables credit unions to strike the proper balance between meeting all regulatory expectations, recovering lost revenue and providing a value-added service to members with the following specifications:

  • all-new analytics, strategies, and reporting and tracking capabilities;

  • established overdraft limits;

  • clearly defined rules of how a member may access the service;

  • compliant member communications materials; and

  • comprehensive staff training and user-friendly implementation.

    Avoid compliance headaches

    As of now, there is no effective date on any new rule-making related to overdrafts. As regulators continue to conduct research and consumer testing on overdraft processes, credit unions can continue to provide their members with a straight-forward approach to responsible overdraft usage with JMFA Overdraft Privilege.

    A free, no obligation analysis of your existing overdraft program can uncover potential revenue opportunities and compliance risks. For more information on how to implement a fully compliant, successful overdraft program for your credit union, call 800-809-2307 or visit

    About JMFA

    JMFA is an approved business partner of Credit Union Resources, Inc., a subsidiary of Cornerstone Credit Union League. JMFA is a leading provider of profitability and performance-improvement consulting. For more than 35 years, JMFA has been recognized as one of the most trusted names in the industry for earnings enhancement and expense control programs, training and development, recruitment services, as well as product, service, pricing and technology-improvement consulting. Simply stated, JMFA’s programs and services are designed to increase income or reduce expenses. JMFA is proud to be a preferred provider among many industry groups. To learn more about JMFA, please visit or call 800-809-2307.