A twice monthly report for financial institutions. Read Story. Tips & RemindeRs regarding your HSA

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1 *Single-family, owner-occupied, residential homes only. Annual Percentage Rate (APR) is variable and adjusts to the Prime Rate as published in the Wall Street Journal on the last business day of the month, which was 3.25% as of 10/23/14. Maximum APR is 18%. 80% combined loan-to-value based on tax-assessed value. Certain third party fees will apply and range from $200 - $1,500. Available to Wakeeeld Co-operative Bank rst mortgage holders only. January 22, 2015 Vol. 2, No. 12 Siefer Report A twice monthly report for financial institutions checking mortgages e-services HSA statements HELOC referrals lending ds hirst eypoint! ive tive for details. Checking Accounts E-Service Packages An Ohio bank s new FM express package features digital services like Popmoney, A2A, and Mobile Capture E-Statement Sign-Ups Referral Programs This PaySound Checking product offered by a Texas bank comes with a debit card, costs $15 per month, and has no OD fee Here s how to boost your institution s total e-statement sign-up rate to 60 percent or higher in the months ahead A California CU keeps its Refer A Friend program fresh and productive by offering new incentives each quarter Mortgages Health Savings Accounts Tips & RemindeRs regarding your HSA Health Savings Accounts (HSA) are accounts for individuals and families covered by certain high deductible health insurance plans. HSAs allow for tax deductible contributions and for tax free distributions if used for qualified Online Lending An Indiana bank markets its Health Savings Account through Retail, Private Banking, and online banking channels medical expenses. HELOC Promotions Certain U.S. Internal Revenue Service (IRS) rules apply. See the reverse side of this document and consult your tax advisor. 1stsource.com A Tennessee bank s new Mortgage Services Website has an expanded marketing footprint and personalized online service This Massachusetts bank s new HEL product has no annual fee, no attorney closing costs, and no processing or appraisal fee Online lending services will continue to expand as institutions increase marketing to Gen Y and younger customers Siefer Consultants, Inc. PO Box 1384 Storm Lake, IA (712) fax (866) info@siefer.com

2 This PaySound Checking product offered by a Texas bank comes with a debit card, costs $15 per month, and has no OD fee W ith the evolution of overdraft protection becoming as complicated as a James Joyce novel, many banks are in a conundrum regarding how to approach this once revenue-driving product. The Consumer Financial Protection Bureau (CFPB) has added layers of regulations on how financial institutions can offer overdraft protection, including whether they can even offer it. The CFPB is trending toward possibly no longer allowing banks to apply a fee for overdraft protection, or what they can charge for an overdraft, says Ted Awerkamp, Chief Retail Officer at FirstCapital Bank of Texas ($950 million, Amarillo, Texas). While nothing has been decided definitively, we would rather be proactive and have a plan in place that helps our customers rather than continue to react. Awerkamp explains that FirstCapital took action a few years ago, when it hired an outside consultant to review and scrutinize the bank s checking account offerings. Account streamlining We had 17 checking accounts at the time, but could see that customers were mainly only using about two or three types. The accounts were a culmination of where the bank was historically, which evolved into additional products and brought us to the place where we had too many accounts. As the consultant began to re-assess the bank s retail structure, the theme of simplicity was brought to surface. Money is money, says Awerkamp. No one comes to a bank seeking a highly complicated checking account. They choose the account that meets their needs, but in a simplified manner. January 22, 2015 Page 2

3 Offering solid products is difficult enough with these regulation requirements, and with all the disclosures that are needed, it only compounds the problem of trying to keep them simple. During the process of paring 17 accounts down to a handful, Awerkamp says the team came to the realization that customers still desired a product that addressed those who needed to have access to overdraft protection. Young professionals, single mothers, or those living on a fixed income will often keep their checking account pretty lean, so any unwelcomed financial surprises usually mean trouble. A Checking Plan for customers He says what ends up happening is the customer, who may be between paychecks, ends up at a payday lender or some other dubious financial resource, which ultimately causes a cycle of debt. Bank s Checking Account Line-Up (Click on Image for Link) Source: FirstCapital Bank of Texas (Amarillo, TX) January 22, 2015 Page 3

4 We want to help our customers avoid that type of scenario and get ahead instead of going into debt; that s where our PaySound Checking Plan comes into play. PaySound Checking was designed and developed by R.C. Giltner Services, Inc. with the goal of providing the customer with solid checking power, but no overdraft fees. For $15 a month, the customer receives an interest-bearing premium checking account that comes with a debit card, online and mobile banking services, plus a special feature that prevents the customer from accruing overdraft fees. If you opt out of overdraft protection, you will be charged from the retailer and the bank for having to return the check, says Awerkamp. Bank s PaySound Checking Plan Source: FirstCapital Bank of Texas (Amarillo, TX) January 22, 2015 Page 4

5 With this product, we just won t process the amount, which reduces the potential fee exposure. As an added layer of protection, customers can tie their account to a line of credit up to $2,000 with credit check which should keep costs at a minimum. Customers in good standing can open a line of credit for up to $1,000 without a credit check. One aspect I like about this product is that our consultant performed due diligence and worked through this account with the CFPB and regulators, so we know we have a strong product in our offerings, says Awerkamp. He says that his team is in the process of developing a strategic plan in order to hit specific targeted markets. We only rolled the product out in November, so we are still in the process of creating and implementing a targeted marketing program. Currently, our customer service representatives have all of our accounts as part of a matrix in order to determine which account is the best fit. We know that we are the only bank in the market offering an account like this, along with four other enticing checking accounts. He says that conversion to the new account lines was seamless, and customers were transitioned to a FirstCapital Bank of Texas account that met or exceeded their needs. Source: Ted Awerkamp, Chief Retail Officer, FirstCapital Bank of Texas, Amarillo, TX; phone (806) ; tawerkamp@fcbtexas.com. January 22, 2015 Page 5