Situation

Large Southeast Regional bank needs to standardize and automate the nightly NSF decision process while controlling risk associated with paying items into overdraft.  Secondary objective is to grow non-interest income through increased NSF revenue.

Driver Goal

Increase NSF pay over rate to 75%

Improve NSF collection rate to 92%

Decrease NSF principal chargeoff rate to 4%

Increase NSF income by 15% to 20%

Actions Taken

Created an NSF Decisioning Model

Identified decision criteria

Developed value scales for each criteria

Performed customer impact analysis

Developed NSF Process Dashboard to monitor key metrics

Results

All target rates were met with an increase in NSF recurring revenue of $40 million with an ancillary improvement in customer experience through a higher pay over ratio.