The Supplemental Dividends application is designed to allow institutions to provide members/customers with a periodic dividend payment based on their usage of institution services, including Debit Cards, Debit Roundup, e-statements, ACH, and other services that the institution wants to encourage the usage of. The dividend payment is based on a percentage of the average account balance across all accounts the member has of the specified reward type. Each time the application is run, upon meeting minimum requirements, customers/members may receive a supplemental dividend payment. The dividend amount is credited to the customer/member's reward account at the time that the application is run in update mode.
The application determines qualification for the dividend based on the member/customer's use of services. Each service is evaluated to see if the member/customer meets the threshold set for that service. The number of services that meet or exceed threshold are counted. When the count exceeds the institution specified number of services needed to qualify then a supplemental dividend is paid. The specific criteria this application can make the determination on include:
- Direct Deposits of funds > than a threshold amount. For ex. to qualify, a member/customer would need at least an average of $500.00 in direct deposits per month across the evaluated accounts and across the evaluation time window.
- Debit Swipes > than a threshold amount. For ex. to qualify, a member/customer would need at least an average of 10 debit card swipes per month across the evaluated accounts and across the evaluation time window.
- Debit Roundups > than a threshold amount. For ex. to qualify, a member/customer would need at least an average of 7 debit roundup deposits per month across the evaluated accounts and across the evaluation time window.
- E-Statements enabled or not. The application can evaluate a member/customer's use of e-statements as a qualification criteria, giving them credit if they are using e-statements.
- Optional Products. The application allows an Institution to specify up to an additional 4 products that they want evaluated to determine qualification for the supplemental dividend. The products are entered as Major:Minor account type pairs. The application reviews the member/customer's use of services and gives them credit in the instance where they have an active account of the type specified by one of the 4 Major:Minor account type pairs. This approach can be used to look for use of Car Loans, Mortgages, HELOCS, for ex. and use those to help qualify people for the Supplemental Dividend payment.
The application provides the benefit of providing a supplemental dividend to members who consume the services the institution wants them to use. Encouraging the use of these services can increase interchange fees and enhance income for the institution while also reducing costs.
- Reward members/customer for using preferred services
- Increase debit card usage and interchange fee income
- Encourage members/customers to sign up for e-statements