Velocity Solutions Inc. has launched a new version of an overdraft management tool, Intelligent Limit System V12, for banks.
The software equips banks with automated tools and technology to manage overdraft programs, including compliance documentation and reporting, monitoring, communication and risk management, Velocity said Wednesday.
Intelligent Limit System is a browser-based tool that will help banks identify and document instances of excessive overdraft use. Velocity said that the software is compatible with most core systems and existing overdraft programs.
"In the current regulatory climate, overdraft programs are a key focus," Christopher Leonard, president of Velocity, said in a news release. "Banks will need to be prepared to provide detailed reports and documentation regarding how they are complying with regulators' new expectations."
The Wilmington, N.C., company said that the software should help banks meet the additional guidelines that the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency issued in the last few years about overdraft programs.
The Consumer Financial Protection Bureau also recently announced that it had launched an inquiry into overdraft protection practices.