New rules regulating how overdraft fees are applied to debit cards will have a significant impact to most financial institutions in 2010. The challenges involve data management, customer contact (and education), staff training, and compliance reporting. Meeting these challenges requires a coordinated, professionally executed multi-channel communications plan. Achieving success and compliance will require a series of thoughtful, coordinated messages using multiple communication channels.

Introducing the RED-e Solution for Reg-E OPD Opt-In

A complete, integrated platform to:

• communicate
• educate
• capture
• confirm

How it works ...

Overview | Database | Communications | Microsite | Fulfillment | Integration

Overview

RED-e is the result of years of development and refinement to achieve a truly integrated multi-channel. multi-contact platform for financial institutions. Combining a powerful, secure back-end database with a dynamic e-marketing engine, RED-e enables financial institutions to deliver the right message to the right person at the right time. With the challenges posed by Reg. E Overdraft Opt-in, financial institutions and their marketing partners can count on RED-e as the integrated contact platform for:

• email
• direct mail (including PURLs)
• web-site registration with a branded, dynamic microsite
• call center support
• opt-in confirmation fulfillment
• reporting and integration

Database

The core component of the RED-e for Compliance program is the data capture and processing of your customer preferences. RED-e provides a secure (SAS-70, Type 2) environment that functions as your central hub for capturing and storing preferences. Because it is tightly integrated with a branded education/registration microsite, your RED-e database makes it easy to maintain your customer's current opt-in status.

If you are seeking to maximize opt-in across your entire debit card holder base, we recommend that all qualified customers be stored in the RED-e database for this program. There are four key benefits to this approach:

• Better Customer Experience. The ability to pre-populate data fields and use dynamic content allows you to present information and options in a personalized, segmented approach.
• Lower Operational Costs. Driving data capture to your microsite results in lower costs, including staff time, and delivery of the required Opt-In Confirmation via the e-Fulfillment (included with the microsite).
• Smooth Data Integration. RED-e acts as an external system of record throughout the life of this effort. Updates to your internal system of record can be handled securely and automatically via a number of secure communications tools.
• Expand Your Email Address File. If you don’t have email addresses on all your debit card customers, no problem. RED-e hosts all records (with and without email) and automatically captures email addresses for this important customer segment. (Ask about our Permission Activation process that results in 98% subscriber retention rate.)

Some institutions will prefer to segment their communications depending on the customer overdraft history. RED-e supports multiple communications tracks based on segments. So, an institution could maintain all, or just a portion, of their debit card user data and assign different contact plans to each segment. And, since the microsite supports multi-channel registration, customers who are not in the RED-e database can still be registered and e-confirmed, either by visiting your website, or by your front line staff.

Communications

Education

The Federal Reserve’s safe harbor model opt-in form (Form A9) enables users to link back to your institution’s product and policy website pages as part of the informational content. The model form language is educational and functional, but regulatory guidance does not allow for much deviation without incurring non-compliance issues.

The RED-e microsite includes generating a pre-filled form A9, but it goes beyond that basic step. By providing an initial "landing page" before the compliance form, RED-e allows you to provide more information / education about your specific programs/products, and overdraft protection in general. Content can include product descriptions, calculators, video worksheets, etc. Once they are better informed, customers can proceed to the actual Form A9 and complete it with one checkbox (if they are already in the database), or by filling in some fields.

For institutions using a segmented strategy, content on the educational page can be multi-versioned and dynamically generated based on specific segments.

Notifications and Data Capture

One of the key benefits of the RED-e platform is the ability to easily handle multi-channel, multi-contact efforts. No need to pull multiple data files and run merge-purge processes to get the latest updated file. Customers can be reached via email, direct mail, website, or phone — even in-branch kiosks. If you need PURLs (personalized pages for targeted email and direct mail), RED-e can generate these quickly using the most current and up-to-date data source.

The RED-e email engine is a powerful messaging platform optimized for financial institutions. Major features include full message personalization, enhanced delivery, in-depth reporting, advanced scheduling and dynamic auto-responders. (For a more complete list of features, please click here.)

In addition to email, RED-e offers complete support and integration for other contact channels, such as direct mail, in-branch, call center, and ATM. - We can work with your vendors to provide seamless integration between systems - If you need any of these additional services as part of your program, we also offer complete turnkey packages in conjunction with our RED-e partner network

Automated Opt-In Confirmation Processing

A key requirement of the Overdraft Opt-In regulation is that customers who opt-in must receive written confirmation of their consent, along with instructions on how to revoke the consent. The RED-e integrated microsite engine enables customers to print their opt-in confirmation directly from the web form, or request an immediate email copy. Optionally, institutions can allow requests for a copy to be sent via postal mail — and RED-e handles that as well, by automatically sending the completed confirmation file to your processing center (or ours) for print and mail fulfillment.

For large volume print/mail handling of opt-in and confirmation forms, ClickRSVP offers a state-of-the-art scanning and processing center to handle the fulfillment.

Built-in Audit Trail

An important aspect of the RED-e system is its ability to log and record customer activity related to Reg E compliance. This feature enables institutions to maintain a record of contact activity if needed for regulatory audit.

Integration, Reporting, and System Updates

Keeping track of who has opted in (or opted out) and updating back-end systems presents a challenge for every institution. Fortunately, RED-e offers a number of options to maintain data integrity between systems. With its SAS-70 (Type 2) hosted database, RED-e is able to provide various data synchronization and reporting options. Depending on your institution’s needs and resources, RED-e offers:

• Secure batch transport via FTP
• File transfer via secure email
• Financial-grade VPN connectivity for direct system interfaces
• Application access for extracting / uploading data
• Web service transport
• Automated reporting

Summary

RED-e for Compliance provides a proven platform to help financial institutions meet these requirements:

•   on time

•   with maximum opt-in participation

•   lowest possible cost (and highest ROI)

•   with minimal impact on staff resources

For details or to discuss your requirements, please contact

Joe Timm, Senior Vice President
877-807-2027, Ext 300