The August issue of Bank News magazine featured an article by Keane Senior Vice President, Mike Ryan. The article provided information for banks considering outsourcing unclaimed property services in addition to offering a great deal of background on unclaimed property compliance and escheatment best practices for banks.
The following is an excerpt from the article appearing on BankNews.com. You can read the article in its entirety by clicking here.
Outsourcing Unclaimed Property for Optimal Results
While best practices can help guide the unclaimed property process, management of abandoned assets is not a core competency for most banks. With tightening budgets, increased regulatory pressures and the high stakes of inactive accounts, many banks are choosing to outsource the management of unclaimed property compliance and communications. The benefits of escheatment outsourcing are clear and the return on investment is easily measurable. Among key “outsource or in-source” considerations should be:
- How many accounts escheat each year?
- How many account owners are being reactivated by following state-mandated due diligence efforts?
- What additional efforts do you conduct to locate and reactivate accounts?
- How many accounts and dollars did these efforts prevent from escheating?
- What was the total internal cost?
- What is the ultimate value to the bank?
Beyond the positive impact on account retention and revenue, outsourcing compliance and account retention programs can free your operations staff to focus on its core responsibilities that are central to your bank’s success.
Whether you handle the management of unclaimed property in-house or outsource it, the resources that you invest will pay dividends. Proactively protecting accounts from escheatment will help keep your customers happy and boost your bottom line — a win-win for your bank and your customers.