zInitiate helps financial institutions approve more accounts, reduce fraud losses and decrease data acquisition costs which lead to a more profitable bottom line.
Bozeman, Mont. (PRWEB) September 22, 2011
Zoot, a leading provider of advanced instant credit decisioning and loan origination solutions, today announced the launch of zInitiate℠ account opening solution. The solution was designed to address the changing retail demand deposit landscape and give banks new options for the most effective, profitable demand deposit account (DDA) opening.
“New regulatory requirements and consumer behavior changes are challenging the traditional profitability model of demand deposit accounts,” said Dennis Dixon, president of Zoot Enterprises. “Zoot introduced zInitiate to give our clients an advantage in their DDA opening processes. Our solution helps financial institutions approve more accounts, reduce fraud losses and decrease data acquisition costs which lead to a more profitable bottom line.”
Zoot’s zInitiate account opening solution allows financial institutions to choose the level of sophistication necessary for their DDA portfolio and enhance capabilities as needed—from efficiently opening DDAs to simultaneously prescreening customers for cross-sell products. The solution integrates the necessary data types to efficiently support traditional DDA opening (closed for cause, fraud, KYC, and OFAC), in addition to using bureaus and alternative data providers to optimize the evaluation of consumers, including those with limited credit history.
Combining alternative data with traditional data on historical fraud and account abuse gives financial institutions a competitive edge. Alternative credit data providers can prove significant results in predicting the likelihood of fraud or account abuse during account opening. By evaluating customers more comprehensively banks can approve more accounts, reduce fraud losses and decrease data acquisition costs by pulling less expensive data options first.
“TowerGroup predicts banks will lose $25 billion annually in overdraft and interchange fees due to new regulations. Financial services institutions (FSIs) must look beyond the development of a new or changed product set and instead consider a new way of doing business," said Nicole Sturgill, research director, at TowerGroup, a Corporate Executive Board company. "Rather than measuring just the profitability of the DDA, FSIs should be measuring the profitability of the overall relationship. They must now make profitability measurement standard operating procedure, which will include centralization of data, optimization of cross-sales offers, implementation of metrics tools, and price optimization."
Zoot’s zInitiate account opening solution enables financial institutions to make optimized product offers to increase customer retention and grow accounts. zInitiate leads the next generation of account opening solutions by facilitating instant DDA decisioning at a lower cost while also prescreening customers for deposit or credit cross-sell offers. zInitiate provides business users the control to configure their solutions and product offerings.
Bozeman, Mont.-based Zoot Enterprises, Inc. provides comprehensive credit decisioning, loan origination and credit risk management solutions to enable clients’ unique business objectives, leading to long-term relationships with top U.S. and international financial institutions. Zoot’s rapid, high-volume processing environment has the capacity to process billions of transactions per year. Visit http://www.zootweb.com or call 406.556.7555 for more information. Zoot thought leaders are now featured on http://www.zootweb.com/blog/.