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." .
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.
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