Overdraft management systems, when managed properly, are beneficial for your accountholders and financial institution. Accountholders receive a safety net they can rely on and financial institutions maintain the ability to preserve non-interest income.
What is an Overdraft Management System?
An overdraft management system (OMS) manages a financial institution’s overdraft program. OMS equips banks and credit unions with essential tools for implementing, maintaining, and safeguarding overdraft programs. It includes tools to help with compliance measures, training resources, and educational and marketing materials.
How Does an Overdraft Management System Work?
An overdraft management system provides financial institutions with the resources and tools they need to advance overdraft fee revenue and evaluate program performance. An OMS covers compliance, education, marketing, overdraft protection software, and support. It includes consulting services and a library of materials for use within your financial institution, all of which are 100% compliant with federal regulations.
An OMS is a staple in modern banking because it ensures your financial institution stays compliant with increasingly strict regulations and greatly reduces or even eliminates the man hours required to execute manual processes involved with overdraft program management.
Key Components of OMS
Compliance
Federal regulatory compliance is critical. An OMS provides compliant language for policies, procedures, and disclosures that will pass any audit.
Education
An OMS helps financial institutions get entire teams up to speed on overdraft policies. Teams will be well-versed in every aspect of overdraft management programs, and staff will be able to educate accountholders more effectively about the tools they have at their disposal.
Marketing
An OMS offers access to an online library of overdraft videos, printable brochures, website language, and social content for use within your financial institution.
Overdraft Management Software
Utilizing customizable software like SmartTech will offer key insights into your overdraft management program. Cutting-edge overdraft management software will allow you to process collection letters automatically, drastically reducing the hours of manual work involved.
Support
A strong OMS system will provide a solid support program, from onboarding and deployment to ongoing maintenance and support.
