Payitoff Launches the Bank Deposit Impact Estimator to Assist Financial Institutions in Managing the Student Loan Resumption Challenge
Empowers Banks to Mitigate Deposit Exodus and Enhance Customer Savings Amidst Federal Student Loan Payments Start
NEW YORK, NY – September 12, 2023 – Payitoff, a leading provider of consumer debt guidance tools for financial institutions, fintech, and financial wellness providers, today launched its Bank Deposit Impact Estimator tool from the floor of FinovateFall 2023. As federal student loan payments are set to resume, financial institutions are bracing for a potential tidal wave of $18 billion in monthly payments exiting bank accounts. The Bank Deposit Estimator empowers banks not only to estimate the potential impact of student loan resumption on their deposit levels but also to help their customers save money on their monthly payments.
The Bank Deposit Impact Estimator simplifies the process for financial institutions requiring just one input – the total number of customers. From this, the Estimator calculates the following:
Estimated number of customers with student loan debt: Utilizing data from the Federal Reserve for the year 2020, the tool accurately estimates the number of bank customers currently burdened by student loans.
Estimated number of customers who benefit from federal plans: It identifies the customers who could benefit from federal repayment plans, giving banks insights into the size of the audience they can assist.
Potential monthly bank deposits remaining in-bank: This critical metric estimates the potential monthly borrower savings, which in turn reflects the deposits that would remain within the bank. The calculation is based on the average monthly savings of $240 per borrower that Payitoff’s debt guidance solutions garner.
Potential annual bank deposits remaining in-bank: For a broader perspective, the tool calculates the annual estimate of potential borrower savings and the corresponding annual deposits remaining within the bank.
"We understand the unprecedented challenges that banks are currently navigating as they prepare for the surge in student loan payments,” said Bobby Matson, Founder and CEO of Payitoff. “The Payitoff team has been working tirelessly to innovate on behalf of banks, and we are committed to continuing this mission. Our goal is to empower financial institutions with the tools they need to not only weather this wave but to thrive in the face of evolving financial landscapes."
Today's launch is another testament to Payitoff’s unwavering dedication to supporting financial institutions. It follows the recent success of Payitoff's Find My Servicer tool and the release of a comprehensive white paper that offers banks an essential survival guide to navigate the impending deposit upheaval. For more information and to explore how Payitoff can bolster your institution's financial stability, please visit payitoff.io.
