April 13, 2022

Personetics Offers World’s First “Proactive Cash Flow Management” Capabilities to Help Banks Provide Customers with Enhanced Overdraft Support

Fintech’s advanced money management capabilities help banks anticipate when customers may have upcoming liquidity issues and enable them to address the situation proactively

NEW YORK – April 13, 2022 – Personetics, the leading global provider of financial data-driven personalization and customer engagement solutions for financial institutions, today announces the world’s first suite of “Proactive Cash Flow Management” capabilities to help banks face the growing competitive, regulatory and consumer requirements to combat overdrafts.

The overdraft landscape in the US is at a watershed moment, with leading banks announcing changes to their overdraft offerings in recent months, including scrapping fees, extending grace periods, or providing short term loans.

Personetics’ Proactive Cash Flow Management capabilities are the first to enable banks to act proactively to address overdraft situations, not just reactively. By analyzing customer transaction data and cash flow patterns, banks can understand customers’ situations, accurately predict when an overdraft might occur, and proactively offer treatment options that address customer-specific needs. The treatment approach is tailored to the customer situation and likelihood to overdraft.

By proactively engaging customers on cash flow problems, banks can reduce the number of overdraft and negative balance situations and build stronger relationships with customers, leading to higher customer satisfaction and loyalty.

Personetics Proactive Cash Flow Management capabilities are comprised of:

• Customer Enrichment: determines the customer profile to help banks understand each customer’s unique situation and root causes of overdraft. Customers may fall into one of four personas:
  • Paycheck to Paycheck: customer’s income may be volatile or barely enough to cover expenses.
  • Hardship: customer has experienced a recent financial hardship such as income loss or significant expense
  • Mismanagement: customer has mismanaged the timing of their deposits or payments during a sensitive cash flow period
  • Affluent Mistake: customer has plenty of funds deposited overall, but mistakenly has gotten into an overdraft condition on a particular account
• Cash Flow Prediction: Identifies likelihood of customers to incur an overdraft situation and the likely timeframe. Personetics’ Cash Flow Prediction model has proven accurate in predicting 70% of overdraft situations.
• Tailored Treatment: Personalized insights offering treatments to address the potential overdraft condition.

“For a long time, overdraft fees have been ‘in the shadows,’ viewed as a penalty fee disproportionately applied to those who can least afford to pay,” said Jody Bhagat, President of Americas at Personetics. “We applaud the industry’s rapid response to lessen penalty fee impact, but there remains an even bigger opportunity moving forward.

“The next stage is for banks to leverage advanced data and analytics and proactively engage the 4-6% of customers who overdraft on a monthly basis. This means using advanced data and analytics to better understand the individual customer and offer personalized treatments that avert the overdraft condition and improve their financial well-being.

“Progressive banks all over the world are seeking new ways to help customers with their money management. By adopting a data-driven, personalized approach, banks can unleash their creativity in delivering tailored solutions and treatments that put customers’ financial wellness at the center of the experience.”

For more information on Personetics’ solutions for Proactive Cash Flow Management, read our blog article, “Reshaping Overdraft Response to Drive Business Impact,” or watch our on-demand webinar recording, “Customer-centric Innovation for Overdrafts.”

Originally published on Business Wire, April 13, 2022: https://www.businesswire.com/news/home/20220413005454/en/Personetics-Offers-World%E2%80%99s-First-%E2%80%9CProactive-Cash-Flow-Management%E2%80%9D-Capabilities-to-Help-Banks-Provide-Customers-with-Enhanced-Overdraft-Support