Jeffrey P. Naimon extensively quoted in S&P Global article, “Community banks face regulatory, competitive pressures to alter overdraft policy”
S&P GlobalJeffrey P. Naimon
The S&P Global article, “Community banks face regulatory, competitive pressures to alter overdraft policy,” discusses how the FDIC’s focus on overdraft activity has trickled down to community banks, causing them to reassess their practices.
Naimon said that because the view of overdraft fees is changing, it has put examiners “between a rock and a hard place” since “a lot of the long-time examiners are looking at long-time deposit practices of the banks they supervise and are surprised when all of a sudden, [the practices are] being questioned as potentially illegal.” Naimon also noted banks are feeling the squeeze from new entrants, untethered to legacy systems, and offering less expensive products and services. “The fintechs are making those offers, and they’re getting a lot of customers. Some banks are operating on outdated technology, and much of the world is operating on new technology. Community banks are facing not only a tech issue, but a fee issue, so they’re facing kind of a two-front battle.”