F.N.B. Corporation (NYSE: FNB) said it is making important changes to its overdraft practices that company officials say further benefit customers of its banking subsidiary, First National Bank.
In conjunction with FNB's digital tools, products and focus on financial education, the updates are designed to promote positive banking behaviors, prevent overdrafts and better enable customers to reasonably avoid fees, the officials said.
Expected to be effective in the first quarter of 2023, FNB plans to implement multiple updates, including eliminating continuous overdraft fees; reducing overdraft and non-sufficient funds (NSF), or returned item, fees; and decreasing the maximum number of times customers can be charged these fees in a single day.
Along with other depository transaction processing changes, the company said it also will ensure customers do not incur overdraft fees for transactions that are $5 or less.
Overall, FNB's anticipated changes are expected to reduce overdraft-related fees assessed to customers by approximately $10 million (pre-tax) on a full-year basis.
Complementing these changes, FNB said it will launch two new products in 2023 that give customers additional cash flow flexibility and expanded tools to strengthen their financial management skills:
* A short-term, small-dollar loan solution that enables eligible accountholders to use FNB's digital tools to apply for and quickly receive funds.
With online and mobile access to credit to fill urgent financial gaps, FNB's new small-dollar loan product will aim to help customers reduce fees and provide an alternative to expensive, nontraditional loan options, company officials said.
* The FNB Smart Secured consumer credit card for customers looking to establish or improve credit. A cash deposit into an FNB savings account is used to secure the card, with the amount of the deposit set as the card's credit limit.
Company officials said the savings account is held as collateral, so FNB can enable customers, including those with no credit or low credit scores, the opportunity to demonstrate responsible financial management habits and build or repair their credit over time.
F.N.B. Corporation, headquartered in Pittsburgh, Pa., is a diversified financial services company operating in seven states and the District of Columbia.
FNB's market coverage spans several major metropolitan areas, including: Pittsburgh, Pa.; Baltimore, Md.; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, S.
The company has total assets of nearly $43 billion and approximately 340 banking offices throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia.