The Intelligent Limit System® (ILS) provides you with automated tools and technology to manage overdraft services as a line of business - something that is critical in today's regulatory climate and competitive environment. With recent regulatory changes, the Dodd-Frank financial reform legislation creating the Consumer Financial Protection Bureau, the FDIC issuing new overdraft payment supervisory guidance and the OCC following suit, financial institutions that have not seriously reviewed and upgraded their ability to handle overdraft services may see revenue and service levels begin to decline and no longer be in compliance with applicable regulations and supervisory guidance.

At Velocity Solutions, we can help you manage this important revenue source and assist you with meeting your compliance obligations. With ILS, we measure service and pay ratios by account holder segment; change overdraft limits automatically when deposit or other important account holder patterns change; and track declined debit/ATM transactions by account.

While most financial institutions have only rudimentary tools for making pay versus return decisions, ILS enables you to use dynamic overdraft limits, which are more responsive to account activity changes and therefore better protect the account holder and the financial institution. By using dynamic overdraft limits, you are able to pay more items when risk is low thus generating more income; reduce limits when risk increases to reduce losses and retain the account; and provide a fair service that takes into consideration each individual account holder's financial situation.

As you know, it can be equally as damaging to provide account holders with an inadequate overdraft limit as it is to provide them with too great of a limit. When you adjust limits based on the parameters of the individual account, you provide the best service level for all account holders and address regulatory scrutiny by proactively managing your overdraft services.

In addition, it is now critical to message to heavy overdraft users to comply with overdraft supervisory guidance, and ILS provides the tools for this messaging as well as documentation of communication efforts made.

Compatible with almost all core systems and existing overdraft programs, ILS gives financial institutions the tools they need to effectively provide overdraft services for the benefit of both the consumer and the financial institution, all while meeting enhanced expectations for regulatory compliance.

To find out more, contact Velocity Solutions today and ask about our Intelligent Limit System.