Velocity Solutions Leads the Industry in Promoting a "Fairness First" Approach to Overdraft & Consumer Liquidity

FORT LAUDERDALE, Fla., May 16, 2024 /PRNewswire/ -- Velocity Solutions has launched an educational campaign encouraging community financial institutions to adopt a "Fairness First" approach to their overdraft and consumer liquidity services. The campaign was designed to address industry confusion caused by the CFPB's recent proposed overdraft rule, and the flurry of media coverage that followed.

Velocity's campaign illustrates how the only fair approach in providing consumer liquidity is one that empowers consumers and allows them to make their own choices—while minimizing risk by assigning liquidity limits that they have the ability to repay. Velocity has nearly three decades' experience in this area, having worked directly with community banks and credit unions since 1995. Velocity also created the industry's only Consumer Liquidity Engine™, a suite of solutions providing intelligent overdraft management, small-dollar consumer lending, Reg. E education and utilizing the proprietary VelocityScore™ in assigning liquidity limits. Velocity won a 2022 NAFCU Innovation Award for its Consumer Liquidity Engine.

Christopher Leonard, Velocity Solutions CEO, is a recognized authority in this field, having been invited to provide quotes and articles for industry publications, participation in panels and speaking engagements for Velocity clients and partners, and also provides consultative advice directly to Velocity clients. In addition, Velocity Solutions is hosting a live Webinar on June 13, 2024 at 2:00 PM ET: Overdraft & Consumer Liquidity: How to Put Fairness First. In this Webinar, Christopher will outline best practices for providing fair, responsible & compliant liquidity solutions, while breaking down the impact that the CFPB's proposed rule could have for financial institutions under $10B and over $10B in assets.

"We and our clients overwhelmingly view the CFPB's action as positive confirmation that overdraft is here to stay, contrary to the narrative some are promoting in the financial press," said Christopher Leonard. "We strongly believe that overdraft fees need to be separated from functionality – the functionality of providing liquidity to consumers that need it is critical. The ongoing debate is focused on the fees."

"The CFPB proposed rule could potentially harm the most vulnerable consumers by making the regulated banking system unaffordable for them, and that's not a scenario that anybody wants," Leonard continued. "Velocity has advocated for greater fairness in overdraft for many years, just as the CFPB has. The reality is that financial institutions have responded positively to this call to action without the need for regulation. Our goal in launching this educational campaign is to demonstrate that community financial institutions can and should make responsible, sensible changes focused on improving fairness."

In addition to the live webinar, Velocity's "Fairness First" campaign includes a variety of multimedia educational resources, including videos, original content, and an infographic illustrating the top seven ways to make an overdraft program the fairest it can be. Registrants for the 6/13/24 webinar will receive immediate access to the entire suite of educational overdraft resources.  

To register for the 6/13/24 Webinar, visit www.myvelocity.com/FairnessFirst.
To read about Christopher Leonard's overdraft credentials, click here. 

Media Contact: Beth Planakis, Director of Marketing, Velocity Solutions: [email protected]

About Velocity Solutions, LLC
Founded in 1995 and servicing the transaction accounts of over 30 million consumers and business owners, Velocity Solutions is the leading provider of technology solutions that drive revenue, service and compliance for community banks and credit unions. Our Velocity Intelligent Platform® powers all of Velocity's solutions, using machine-led intelligence that delivers powerful analytics, manages risk, and drives revenue, loans, account holder engagement and non-interest income to our client financial institutions. For more information, please visit myvelocity.com.

SOURCE Velocity Solutions, LLC