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Bill Strunk, Chairman of Strunk & Associates, LP, was a featured speaker at the SEG & Business Development Conference held recently in Orlando. Strunk & Associates, LP, is a leader in implementing overdraft privilege programs under the Strunk & Associates' Overdraft PrivilegeSM Service Program for credit unions across the United States. In total, they have deployed ODP in over 800 financial institutions in 42 states and Puerto Rico. Overdraft Privilege is their core business. The following article is a recap of Bill Strunk's presentation on the value of Overdraft Privilege to credit unions and their members.
Let's begin by defining Overdraft Privilege (ODP) and why it can be a good member service. An overdraft privilege program first of all is discretionary. And its fundamentals are simple. ODP is a refined process to formalize and better manage discretionary overdraft services. It is a significant extension and enhancement of what all banks and most credit unions have always done. Why would a credit union offer Overdraft Privilege? For two reasons-First, because it results in better member service and increased member loyalty. And second, it provides significant non-interest income to your...