{"id":2778,"date":"2019-12-16T09:56:51","date_gmt":"2019-12-16T14:56:51","guid":{"rendered":"http:\/\/www.ncultheaffiliate.com\/?p=2778"},"modified":"2020-11-19T14:48:43","modified_gmt":"2020-11-19T19:48:43","slug":"looking-for-ways-to-de-stress-the-holiday-season-a-compliant-overdraft-program-can-make-the-holidays-merrier-and-create-goodwill-for-the-new-year","status":"publish","type":"post","link":"https:\/\/www.ncultheaffiliate.com\/?p=2778","title":{"rendered":"Looking for Ways to De-Stress the Holiday Season? A compliant overdraft program can make the holidays merrier and create goodwill for the New Year"},"content":{"rendered":"

With Thanksgiving falling six days later this year than in 2018, consumers will lose almost a full week of holiday shopping. But thanks to advance retail promotions, the buying season began much earlier this year. Information from the\u00a0National Retail Federation<\/a>\u00a0(NRF) predicted that 39% of consumers began their shopping in October. And many subscribers to online shopping\u00a0services kicked off their holiday season in July, with digital events like \u201cPrime Day\u201d that featured mid-year, \u201ccan\u2019t miss\u201d holiday deals.<\/p>\n

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According to the NRF survey, retailers have figured out that many people prefer early shopping to spread out their spending and de-stress the season. So, while consumers who strategize to stay within their holiday budget can make the most out of early promotions and sales, the shopping frenzy can lead to financial hardship for those who don\u2019t keep track of their purchases or who are hit with an unexpected expense.<\/p>\n

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In a financial wellness survey implemented by\u00a0PwC<\/a>, respondents from every generational group reported experiencing financial stress in their life. Cash flow and debt issues were cited as the biggest causes of stress. In the days leading up to the holidays, what are you doing to help calm your members\u2019 financial concerns if they overdraw their account balance?<\/p>\n

If there was ever a good time of year to find a way to reduce stress, it is now<\/em><\/p>\n

The holidays are full of surprises; an overdrawn checking account shouldn\u2019t be one of them. Here are three things that your credit union can do to help members avoid unpleasant financial surprises that can take the \u201chappy\u201d out of the holidays.<\/p>\n

1-Make a connection to members\u2019 financial needs
\n<\/em>According to the National Financial Educators Council, 73% of adults surveyed indicated that they could benefit from advice and answers to everyday financial questions from a professional. A study by\u00a0JD Power<\/a>\u00a0found that tips to help improve one\u2019s financial situation, and advice to help keep track of spending and household budgets are among the most common types of advice retail bank customers are seeking.<\/p>\n

Yet, only 28% of respondents recalled recently receiving any type of financial advice from their financial institution.<\/p>\n

Make sure your member-facing staff listen to account holder concerns and watch account tracking to identify when it might be helpful or necessary to reach out to someone who is having difficulty keeping a positive account balance.<\/p>\n

Remember, many people are hesitant to reach out for assistance when they are in financial distress. By creating a connection with them ahead of time, your staff members can make a tremendous difference in how quickly they get back on track. And demonstrating that you genuinely care about their financial needs will generate valuable goodwill in the process.<\/p>\n

2-Offer a fully disclosed overdraft program to help members cover important expenses
\n<\/em>Convenience is something all consumers are looking for during the holidays. Experiencing an overdrawn account\u2014when an emergency or unexpected expense arises, or an error is made when balancing an account\u2014is not convenient.<\/p>\n

A fully transparent overdraft program that clearly discloses program details\u2014 like overdraft limits and fees, and how the program works\u2014provides a user-friendly solution that allows members to make an informed decision about whether to use it. No guess work, no confusion and a lot less stress.<\/p>\n

On the contrary, a program that involves undisclosed algorithms to determine limits leaves consumers in the dark about how and when the program works to solve their financial needs. This can increase the stress that your members experience and leave them looking for alternative solutions that can be more costly and inconvenient.<\/p>\n

3-Utilize expert program management resources to maintain the best results
\n<\/em>Just as consumers look for a guarantee that the gifts, they buy are reliable and match the recipients\u2019 needs. They want financial products and services they can rely on when they need them. When your staff members are balancing multiple responsibilities tied to extra end-of-year tasks\u2014or don\u2019t have the confidence to fully explain the details of how to responsibly use your overdraft program\u2014errors can occur, and members can be surprised by unexpected charges or misuse the privilege.<\/p>\n

A time-tested overdraft solution provides the necessary tools to ensure that your members are familiar with your program\u2019s policies, their account status and other important information through automated resources and prepared, compliance-tested messages. On-going training opportunities keep employees on the same page regarding the program\u2019s details to solidify their understanding of how the program works and provides them with timely updates of any changes in processes and procedures.<\/p>\n

\u00a0<\/em>The more accurately and confidently your employees explain your overdraft solution, the less likely you are to have to clear up any confusion or misunderstanding among members. Plus, partnering with an experienced overdraft program provider\u2014that offers advice on the latest regulations and a 100 percent compliance guarantee\u2014can reduce the likelihood of scrutiny from examiners and provide peace of mind for your credit union.<\/p>\n

Do what you can to keep the holidays \u201chappy\u201d for your members<\/em><\/p>\n

The holidays should be the most joyous time of the year, but they can also be the most stressful when unexpected financial burdens dampen the spirit of the season. Providing your members with the tools and advice they need to maintain a healthy bottom line can help them begin the New Year with renewed confidence in their relationship with your institution and less concern about having to pay for any leftover holiday expenses.<\/p>\n


\nBy Richard Miller – Senior Executive Vice President of Sales at\u00a0<\/em>John M. Floyd & Associates<\/em><\/a><\/p>\n

\"JMFA\"<\/p>\n ","protected":false},"excerpt":{"rendered":"

With Thanksgiving falling six days later this year than in 2018, consumers will lose almost a full week of holiday shopping. But thanks to advance retail promotions, the buying season began much earlier this year.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts\/2778"}],"collection":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2778"}],"version-history":[{"count":0,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts\/2778\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}