Tuesday, June 12, 2018

OD Revenues at Credit Unions Post Large Y-o-Y Gain

Credit union overdraft (OD) revenues post large year-over-year increase.

OD revenues at credit unions rose by 6.6 percent in the first quarter of 2018 compared to the first quarters of 2017, according to Moebs $ervices.

Moebs $ervices noted that OD revenues at banks and thrifts fell over the same time period by 1.3 percent and 6.6 percent, respectively.

The same trend applies to the number of OD transactions. The analysis found that the number of ODs at credit unions rose 5.9 percent year-over-year, while bank and thrift OD transactions fell 1.3 percent and 6.6 percent, respectively.

The study concluded that "[c]redit unions want fee revenue, and overdrafts is a huge part of this strategic grab to obtain non-interest income." .

1 comment:

  1. You omit from this post the part of the article saying the banks were abandoning the single service consumer segment which creates the need and opportunity for CUs.



The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.