|Product boosts outreach efforts for overdraft opt-ins|
Soundbite Communications' Solution can proactively reach consumers through any combination of automated voice, text, and email messaging, and provides written acknowledgment
Bedford, Mass., 11.19.2009SoundBite Communications, Inc. (Nasdaq:SDBT) today introduced SoundBite's Debit Card Overdraft Opt-In solution, part of its Proactive Marketing Solutions Suite. This solution enables financial institutions to achieve rapid compliance with a new rule announced on November 12, 2009 by the Federal Reserve Board prohibiting financial institutions from charging any consumer a fee for debit card overdraft services unless the consumer has consented, or opted in, to the overdraft services. With overdraft services, an institution charges a fee for processing transactions when a customer's account is overdrawn rather than denying the transaction. The new rule becomes effective on July 1, 2010, giving banks less than eight months to secure consumer opt-in for more than 479 million debit cards.
The new rule, which was adopted under the Electronic Fund Transfer Act, states that a financial institution must obtain a consumer's affirmative consent to the institution's overdraft service and provide the consumer with written confirmation of the consent. However, securing consumer opt-in through the mail can be slow and not cost-effective. A financial institution can use SoundBite's on-demand Debit Card Overdraft Opt-In solution to quickly contact consumers, solicit their consent, and update the financial institution's systems of record with the obtained opt-in information.
SoundBite's Debit Card Overdraft Opt-In solution can proactively reach consumers through any combination of automated voice, text, and email messaging. Attempts to reach a consumer can escalate from one channel to another - such as from an email to a voice message to a text message - in order to increase reach-ability and response rates. Additionally, once a consumer has provided affirmative consent, the Debit Card Overdraft Opt-In solution can automatically send the consumer an email confirmation, along with information describing the consumer's right to revoke notification.
Securing Rapid Adoption
"The Federal Reserve Board ruling requires that financial institutions proactively communicate with their card holders to gain their consent to provide overdraft services," said Mark Friedman, chief marketing and business development officer for SoundBite. "To meet the July 1 deadline, financial institutions need to deploy a flexible solution that can quickly gain consent from a large number of consumers. Our scalable, on-demand multi-channel communications platform, vast experience working with 7 of the top ten US card issuing banks, and insight into consumer communication preferences, uniquely position SoundBite to provide a compelling solution for this immediate need."
SoundBite has a proven track record supporting the proactive customer communications strategies for many large financial institutions. The company's Proactive Customer Communications Offering includes solutions to address changing consumer communication preferences, loan modifications through the Making Home Affordable Plan, card activations, collections, and loyalty programs.
About SoundBite Communications, Inc.
SoundBite Communications provides on-demand, integrated multi-channel communications solutions that enable clients to achieve superior business results. Building on its foundation as a leading provider of automated voice messaging services, SoundBite offers integrated voice, text and email messaging solutions that help clients deliver the right message, to the right customer, using the right channel, at the right time. Organizations in industries such as collections, financial services, retail, telecom and media, and utilities rely on the SoundBite Intelligent Communications Platform to send over a billion messages annually for collections, customer care, and sales and marketing applications. For more information, visit http://www.SoundBite.com.
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