This document provides an agenda and recommendation for educating customers about overdraft fees and balancing their accounts. The summary is: Unknown Financial Institution should implement initial customer education on balancing checking accounts to avoid overdraft fees. Research shows educated customers keep positive balances and remain loyal. New clients would receive education from bankers when opening accounts to improve satisfaction, retention, and profits while reducing calls and refunding fees. The recommendation is to educate clients on fees and balancing to improve the customer experience.

1. CUSTOMER AWARENESS
OF OVERDRAFT FEES AND
BALANCING ACCOUNTS
Presented to: “Ken”
Senior Vice President
Presented by: Pamela Noonan
Senior Claims Analyst

2. AGENDA
• Executive Summary
• Introduction
• Why Educating Clients is Preferable to Refunding Fees
• Issue Resulting in Plan Implementation
• Other Institution Design

3. AGENDA (CON’T)
•Alternatives
•Benefits and Risks to Educating Clients
•Recommendation

4. EXECUTIVE SUMMARY
Unknown Financial Institution should implement an initial customer education in
regards to balancing checking accounts. Research has shown that customers
who are informed on how to perform a check book balance are most likely to
keep a positive balance, do not receive fees (and if they do, they understand
why), and become loyal clients..
New clients would receive their education initially by a banking center Personal
Banker or over the phone with a Customer Service Representative if the account
is opened over the phone, prior to making the initial deposit.

5. EXECUTIVE SUMMARY (CON’T)
• Benefits
• Client Satisfaction
• Client Retention
• Profit
• Risks
• Cost: Increase staff and technology update
• Longer times to open accounts
• Recommendation
• Educate the client on fees and properly balancing checking account

6. INTRODUCTION
Checking/Savings Account Opening
Debit Card
Checks
Depositor Agreement
Call Center – Claims
Client account education

7. STAKEHOLDERS
Technology Team
Shareholders
Call Center Associates
Call Center Managers
Marketing Team
Clients
Banking Center Associates

8. WHY EDUCATE VS. REFUND FEES
Client
Less fees
Less time calling
Associate
Less time de-escalating
Assist with critical issues - fraud
Shareholder
Retaining clients

9. CLIENT SCENARIO
• Client uses debit card at a merchant. Since it is approved, the client
assumes funds are available and there are no issues with the account
• Next day received overdraft fee.
• Five days later, an additional fee causing the original $20 to look as if it
has cost the client $90.

10. OTHER INSTITUTE DESIGN
• UM Credit Union
• $500 loan tied to checking account
• No Extended Overdraft Fees
• Does not allow account to overdraw passed the
loan limit

11. ALTERNATIVES
• Eliminate overdraft fees
• Extremely overdrawn accounts putting the bank at risk for loss
• No consequence to overspending
• The bank has funds out as a “loan”
• Refund fees through customer service
• Call volume still increased
• Associates experience tough conversations
• Loss of clients and poor client satisfaction with the bank

12. BENEFITS TO EDUCATING CLIENTS
• Client is valued and valuable
• Client is familiar with fees and balancing
• Client is informed how to manage account
• Associates are able to more efficiently take care of critical matters
• Retained client relationships
• Potential growth with new clients
• Increased client satisfaction

13. RISKS TO EDUCATING CLIENTS
• More time to open an account
• Profit decrease initially
• Cost to add training material
• Cost to IT to add check box for educated clients

14. RECOMMENDATION
• Regardless of the risks involved in educating the clients on
overdraft fees and how to properly balance their checking
accounts, I see it is vital to the customer satisfaction and
retention to implement the education. Clients will feel valued
and cared for. Associates will be able to assist with more
important issues. Shareholders profits will increase due to the
customer satisfaction and retention.

15. REFERENCES
• Bell, Claese. BankRate.com. 9 May 2012. 2 March 2014
<http://www.bankrate.com/financing/banking/bank-customers-shift-focus-to-fees/>.
• Client. Cllient Pamela Noonan. 20 February 2014.
• Flagstar Bank. n.d. 2 March 2014 <https://www.flagstar.com/>.
• Hayes, Mario. No-Credit-Check.org. 6 June 2012. 2 March 2014 <http://www.no-creditcheck.org/should-financial-literacy-be-taught-in-u-s-public-schools/>.
• UM Credit Union. n.d. 2 March 2014 <https://www.umcu.org/>.
• Shwom, Barbara & Lisa Gueldenzoph Snyder. (2012) Business Communication: Polishing Your
Personal Presence.
• BSR. (2011) Stakeholders Mapping.

16. APPENDIX
Interview with client
Stakeholder Time Table
Slideshare.net: