Using Intelligent Limit System®, Neighborhood Credit Union replaced its one-size-fits-all overdraft program with a data-driven approach that better aligned overdraft access with each member’s financial behavior.
After years of steady growth, Neighborhood Credit Union (NCU) began to see signs that its traditional overdraft program was no longer meeting the needs of either the institution or its members. Income had flattened, charge-offs were increasing, and static overdraft limits failed to reflect some members’ true financial capacity.
Looking for a more flexible and equitable solution, Chief Growth Officer Carolyn Jordan and her team selected Intelligent Limit System® (ILS) to modernize the credit union’s overdraft strategy while creating better outcomes for members and the institution alike.
The implementation allowed Neighborhood Credit Union to adopt a more personalized approach to overdraft protection, replacing static limits with a program designed to adjust to members’ limits based on their income, transaction history, and ability to repay.
Modernizing a Traditional Overdraft Strategy
At the beginning of the transition, frontline staff were initially unsure about ILS, but CSI’s team addressed their questions through onsite training and hands-on support throughout rollout. Once staff understood how the program worked and how it benefited members, buy-in quickly followed.
With ILS, Neighborhood Credit Union was able to provide greater access to liquidity for members with a stronger ability to repay while reducing unnecessary risk where repayment capacity was lower. The result was a more transparent, easy-to-understand overdraft program that better supported both members and the credit union.
NCU also appreciates the ongoing consultation, compliance guidance, and annual program reviews. For example, their Chief Risk Officer uses the compliance analyses provided by CSI’s experts and reaches out for help with updating disclosures. Plus, NCU has found the continuity of working with the same representative year after year to be both rare and invaluable.
“They stayed with us from implementation and never left. You don’t see that with many vendors. Our Project Manager even said they’re the best vendor we’ve ever worked with.”
Carolyn Jordan
Chief Growth Officer
Results at a Glance
Since implementing ILS, NCU has seen significant improvements in program performance, risk management, and member satisfaction, including:
- Consistent year-over-year income growth of nearly 5%
- Pre-ILS, charge offs were steadily rising by double digits year-over-year; but with ILS, charge offs decreased by 30%
- Overwhelmingly positive response, with minimal complaints from those with reduced limits
Despite the misconception that high-income earners don’t use overdraft protection, many of those members were among the most enthusiastic about the change, valuing the added flexibility and fairness.
The revenue from ILS let NCU reinvest directly in its members, who now have free access to their credit score, digital services like Zelle®, and better online and mobile banking features.
“Income went up, and charge-offs went down. Limits are matched to what people can actually afford. It’s a fair program for members, and that’s a good thing.”
Carolyn Jordan
Chief Growth Officer
More Than Neighbors—Partners
In addition to the Intelligent Limit System®, Neighborhood Credit Union also relies on the
- Account Revenue Solution® to build lasting relationships and revenue through onboarding and engagement.
- Invitation Checking® System for data-driven strategies to win accounts and boost retention.
- My Rewards® Premium Cards to deliver more value to members while creating a new revenue stream.
NCU’s ongoing partnership with CSI helps drive engagement, profitability and long-term member relationships.
Strengthening Member Trust Through Smarter Liquidity
With Intelligent Limit System® (ILS), Neighborhood Credit Union transformed its overdraft program into a fairer, smarter, and more sustainable consumer liquidity strategy that gives members a financial cushion when they need it.
By matching liquidity access to each individual’s financial behavior, NCU strengthened member trust, reduced risk of charge-offs, and generated reliable income to support ongoing improvements.
Combined with the CSI team’s white-glove service and long-term partnership model, ILS has delivered both immediate results and lasting confidence.
“It’s exceeded our expectations. We’ll be with ILS for a long time.”
Carolyn Jordan
Chief Growth Officer