To manage short-term, open-end line of credit that is linked to retail customers checking accounts
Fiserv, the global provider of financial services technology solutions, has launched a new software solution to support its relationship advance (RA) service that will allow financial institutions to offer their retail customers an alternative to courtesy overdraft programs and high-cost loan products.
RA is designed to enable financial institutions to manage a short-term, open-end line of credit that is linked to a retail customer’s checking account. It is intended for customers who need cash quickly, conveniently, on a short-term basis and who would not typically qualify for traditional credit products offered by the bank.
According to Fiserv, by using RA, banks can provide their customers the ability to opt-in and make transactions via multiple channels including the online banking portal, branches and call centers.
Customers qualify based upon their historical relationship with the bank, while usage controls are put into place to manage charge-off risks to the bank and to ensure responsible use by customers. Customer opt-in, advance and repayment mechanisms are systematic, thereby eliminating or reducing manual handling of any program aspects.
Jeff Burton, vice president and managing director of revenue enhancement at Fiserv, said: “Relationship Advance is a welcome solution. Consumers can be offered a product that meets their liquidity needs and their budget constraints, while banks are able to provide a valuable service that generates a new and diverse revenue stream to partially offset government proposed overdraft and credit card changes.
In turn, consumers can be offered a low-dollar, short-term line of credit that meets their liquidity needs and their budget constraints.”