Modernizing Overdrafts

Retooling deposits for inclusion

Todd Semanco

Todd Semanco

Partner, Advisory, FS Regulatory & Compliance Risk, KPMG US

+1 412-232-1601

Chad Polen

Chad Polen

Advisory Managing Director, FS Regulatory & Compliance Risk, KPMG US

+1 412-208-6144

The deposit product landscape is rapidly changing and is facing increasing regulatory pressure focused on the potential harm consumers face from overdrafts and other fees. Firms have an opportunity to distinguish themselves by proactively addressing these impacts and working to increase banking access for their most vulnerable customers.

Dramatic growth in consumer deposits amidst COVID-19 and increasing consumer adoption of digital banking accelerated changes in the ways in which consumers interact with their checking and savings accounts. This transformation has had an outsized impact on underserved communities, particularly those that have limited access to traditional financial services providers and the technology that has become key to accessing digital banking products.

This point of view details key considerations around the shifts in the industry landscape and the associated potential compliance impacts, including with respect to expected regulatory change under the Biden administration.