Case Study: Large US Bank achieves 75% overdraft pay rates, increased revenue and regulatory-compliant decisions with FICO

Better Overdraft Decisions Boost Revenue and Greater Customer Satisfaction for Large US Bank

A large U.S. bank with more than $550 billion in assets and over $300 billion in domestic core deposits was struggling with inconsistent pay/no-pay overdraft decisions. Reliance on judgmental processes led to rising losses, high operational costs, uncontrolled fee waivers, and the risk of attrition among valuable, low‑risk customers.

The bank deployed FICO’s analytic, automated overdraft decisioning—using behavior risk scores, account-level shadow limits, and real‑time, risk-and-profit-based fee‑waiver rules delivered via customer channel. Overdraft pay rates rose from below 50% to 75%, fee waivers were reduced and targeted, revenue and satisfaction among top customers increased, and the approach produced consistent, auditable decisions for regulatory compliance.