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We Have Resources to Help!
If your organization is becoming an ODFI, check out these tools which can help you along the way:
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- Helping Non-Consumers with their Cash Management – Automating the daily processing of paper checks to provide something more automated will help your account holders streamline their operations. The time savings on productivity will likely make your account holders think about other ways they can automate their payments, creating additional opportunities for your financial institution.
- Revenue Streams – As an RDFI, your financial institution is posting ACH payments received from other institutions free of charge. However as an ODFI, you may charge fees as specified in your Origination Agreement to charge monthly and/or per entry fees to any of your account holders seeking ACH Origination services.
- Cross-selling of Products – Origination services are a value-added service that you may offer business clients that have deposits or loans at your financial institution. It’s just one more added “root” that will help retain that account holder to remain at your financial institution!
- Deeper Community Ties – As an ODFI, you’ll be helping your account holders send payrolls for teachers, construction workers, police officers, firefighters and many other hardworking individuals while helping to facilitate debits for utility or other billing companies. Successfully handling the payment needs of your account holders will boost your institution’s reputation in the community, especially if you have detailed procedures in place to help Originators in an emergency.
Work with your Board of Directors and executive management to complete an ACH Policy that defines/places restrictions on types of ACH entries, details how to underwrite and review Originations, creates a risk management program for ongoing monitoring, describes any exception handling along with necessary approval processes in place, security controls to help reduce the incidence of risk and procedures to help your staff maximize the experience. If you set the table correctly as a financial institution, then the meal will be enjoyed safely by many! However, if something isn’t set up correctly, risk in the form of operational or fraud is more likely to exploit you as an ODFI.
If becoming an ODFI is something your organization is considering, we invite you to join us November 15-16 in Columbus, OH at our ACH Origination Workshop. The goal of this workshop is to help any financial institution become an ODFI or to help any existing one refine its role or prepare for an expansion of services. We hope to see you there!
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Managing Risks to Get Rewards
Taking risks can come with rewards if you manage those risks. Each ODFI takes on additional risk when offering ACH origination services in hopes of increasing its revenues and number of accounts. Whether you've been offering the service for years with thousands of Originators or Third-Party Senders or if you're just considering offering the service, you'll want to join us on October 18th for our ACH Origination Risks & Controls webinar. We'll identify the potential risks associated with ACH origination and discuss how to limit those risks through recommended best practices. Additionally, we'll review the ACH Rules related to risk management. Register now!
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