Deposit Advance Products Pose No Safety and Soundness Issues

<u>Deposit Advance Products Pose No Safety and Soundness Issues</u>

As stated, the OCC and FDIC have actually prefaced their proposed tips of deposit advance services and products on security and soundness issues. But, there clearly was small proof to offer the premise why these services and products pose any security and soundness dangers to your banks that provide them. It is critical to note some banking institutions have actually provided deposit advance items for several years with little to no or no security and soundness issues, and then we are uncertain regarding the foundation for the Agencies’ concerns over institutional security and soundness. Close regulatory assessment among these services and products has yielded fairly excellent results and, significantly, demonstrated that close working relationships between banking institutions and regulators may result in the introduction of wise and reasonable items. More over, as discussed below, bank-offered deposit advance items involve materially less threat of problems for customers than comparable items provided by non-depository providers sites like 500 fast cash loans.

Reputational Danger

There is certainly evidence that is little of dissatisfaction with bank-offered deposit advance services and products. To your contrary, customer satisfaction by using these items is oftentimes quite high with below normal issue prices. As an example, in a single bank’s current survey of deposit advance clients, 90 % of respondents ranked their general experience with the item as “good” or “excellent”. The customer satisfaction rating ranked higher for the bank’s deposit advance product than any other product offered by that bank in another survey by a different bank.

In still another recently carried out client survey, one bank discovered a lot more than 96 percent of clients stated these were “satisfied” or that is“extremely satisfied their deposit advance. Continue reading “Deposit Advance Products Pose No Safety and Soundness Issues”