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Still Contemplating an Overdraft Solution?
Monday, August 8, 2016 6:40 AM

By Cheryl Lawson, Executive Vice President-Compliance Review, JMFA

As regulators continue to consider possible rulings on overdraft solutions, many credit unions have taken a “wait and see” approach to implementing an overdraft program or initiating a review of an existing program to make sure it's working at peak performance. Consequently, as interest rates remain low and service charge income continues to decline, due in large part to downward trends in NSF and overdraft income, institutions are overlooking a potential source of much-needed revenue and an opportunity to provide better member service.

Don’t miss out on potential revenue any longer

A fully-compliant overdraft program can provide credit unions with substantial revenue gains without making adjustments to existing fees. And because a disclosed program opens the service to a broader member population, there is more of an opportunity for revenue generation.

As the regulatory process continues to slowly progress, waiting for a final ruling on overdraft solutions has proven to be a poor strategy for many institutions. However, implementing a fully compliant overdraft program or upgrading your existing program can provide you with a reliable source of income, total compliance peace of mind, and a valuable member service. As a result, your members—and your bottom line—will thank you.

About John M. Floyd & Associates
JMFA is endorsed by Credit Union Resources, Inc., a wholly owned subsidiary of Cornerstone Credit Union League. JMFA is a leading provider of profitability and performance-improvement consulting. For more than 36 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, and 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.