Fee Refund Management

Retain fee revenue, reduce costs, and deliver an outstanding customer experience – simultaneously.

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Overview

Proactive fee refund strategies at the account level for enhanced profitability, governance and customer loyalty.

Count on an end-to-end, analytics-driven solution to increase fee income by $5-$10 per account with targeted analytics and control revenue leakage with strategic, personalized refund decisions. Implement a consistent refund strategy across all lines of business and locations with the ability to set refund specifics for each account with customer-level capabilities. All while ensuring governance and easing regulatory compliance with documented models.

Enabling Technologies

With 60+ years of pioneering work in predictive analytics and artificial intelligence, FICO powers our solutions with the most advanced science available.

Deposit fees are a vital revenue source

50
%
of deposit revenue comes from overdraft fee income
8
%
of checking account holders provide approximately 75% of fee revenue
20
Million
of increased revenue banks can gain annually by using analytics to manage refunds
Frequently Asked Questions

Learn more about the FICO Fee Refund Management Solution

Today, more than 50% of deposit revenue comes from fee income associated with overdrafts. It can be difficult to decide when to refund fees upon request, but proper management of fee refunds helps organizations preserve and even increase their deposit revenue stream.

By using analytics to manage fee refunds across the deposit portfolio, financial institutions gain a better understanding of when to refund fees and by how much. Doing so can return between $12 million and $20 million annually in additional revenue from fees that may have been unnecessarily refunded.
This is a complete end-to-end solution for managing the fee refund strategy at your financial institution. The back-end system enables business managers to develop analytically derived models and decision rules to implement fee refund strategies at the customer level.

The strategies are deployed to the front line through a user-friendly interface to provide immediate access to clear refund decisions for each customer. This solution ensures consistent, transparent and strategic decisions across all channels, providing the right service to the right customers while helping drive governance and protecting against revenue leakage.

For analysts:
• Access customer data and build propensity models
• Create granular fee refund strategies
• Conduct champion/challenger testing, simulate and refine portfolio strategies

For associates:
• Access a user-friendly interface to receive fee refund offers for each customer
• Use granular reports to understand customer refund history
• Employ an exception management tool to escalate requests
In addition to the anticipated $5–$10 increase in fee income per account with targeted analytics, there are multiple additional benefits for users:

• Ability to control revenue leakage with strategic refund decisions
• Consistent refund policy applied across all lines of business and branch locations
• Customer-level capability to set refund specifics for each account
• Defensible and documented models to ensure governance and ease regulatory compliance
The FICO Deposit Fee Refund Solution can provide proactive fee refund strategies at the account level for enhanced profitability and customer loyalty. In addition, there are several key ways the solution is unique and superior:

Transparent
• No black-box solutions—banks have full access to underlying models
• Full visibility to model performance and refresh capabilities
• End-to-end auditability of past decisions

Flexible
• Easily create and setup business objectives and constraints
• Develop strategies and implement frontline change management
• Hosted or on-premises solution deployment

Comprehensive
• Complete forecasting and decision optimization solution
• Intuitive business user interface for sensitivities and what-if analysis
• Detailed insights into frontline

Find the untapped profit potential within your fee refund strategy.

Ensure consistent, transparent and strategic decisions across all channels, providing the right service to the right customers while helping drive governance and protecting against revenue leakage.