KQ Article

Banks and credit unions everywhere have made it a top priority to restore consumer confidence to the high levels they once enjoyed. And it turns out that a golden opportunity for doing so may have arisen right before our eyes. However, this opportunity is not easy to see.

In “Regaining Control,” an article in this issue of The Deluxe Knowledge Quarterly, William Higham argues that providing customers with more control over their financial affairs is an excellent way to restore confidence. I wholeheartedly agree with this assertion. I also believe that it applies to the new rule added to the Electronic Funds Transfer Act, otherwise known as “Reg-E,” that will take effect in July. The rule will require consumers to opt-in to receiving overdraft protection (and the related fees) for their ATM and one-time debit transactions.

The spirit of Reg-E is to give people the greater sense of control that Higham recommends. But so far, it seems to be having the opposite effect. Information available on Reg-E is limited and confusing, pulling consumers away from the control they desire. Financial institutions that treat Reg-E purely as a compliance issue are likely exacerbating the confusion. They may also be missing a chance to strengthen their brands.

What if you took this “gift” of greater control away from the government and made it a gift from you instead? Savvy financial institutions are doing just that, by positioning themselves as unbiased Reg-E advisors, willing to educate and partner with each customer to make informed opt-in/opt-out decisions.
 
Consumers are either going to trust the government or their financial institution to protect their financial interests. By approaching Reg-E as an opportunity to connect and clarify, you can clearly demonstrate that this is your role in their lives. You will have a powerful new means of building confidence in you.

_{© 2010 Tom Morefield}