Bank Reports

RETAIN MORE BANKING CUSTOMERS

On average an individual branch servicing 10,000 banking customers will lose 6% of customers annually due to involuntary account closure for unpaid overdraft charges (2013 CFPB Report). This results in approx. 1.67 closed accounts per day, or 50.8 charged-off accounts per month. We've broken down the condition of these 50.8 overdraft charge-off in a 90 day life cycle below and defined Overdraft Control Service intervention day 30-60 to retain banking customers and recover loss revenue.

OVERDRAFT CONTROL INTERVENTION DAY 30-60

 

Out of 50.8 overdraft single account closures per month, Overdraft Control historically resolves 25-30 accounts per month.

 

INCREASE REVENUE

 

Overdraft Control has broken down the potential loss with a zero control model and the gains of Overdraft Control intervention day 30-60 to retain banking customers and recovery lost revenue. In this scenario we consider the average cumulative overdraft balance, including fees of $375.00 for consumer and commercial banking customers after day 45.


COST VS. BENEFIT WORKING WITH OVERDRAFT CONTROL AT DAY 45 INTERVENTION

 

Assuming a single branch manages 10,000 checking accounts a month. The cumulative overdrafts for 30 days will result in a potential 50.8 closed accounts each month. A loss to the institution of approx. $19,050 when considering an average balance of $375. Overdraft Control intervention day 30-45 increases recovered accounts by an average of 55% or a net back of approx. $9,085 while retaining banking customers. FDIC National Survey of Unbanked and Underbanked Households contributed to our findings and results.

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Overdraft Control

A1459 Powell Street
San Francisco, CA 94133

T530-391-6695

F714 845 1900