Study finds that service charge revenues were up at credit unions for the 12 months ending June 30, 2018.
According a study by Moebs $ervices, credit unions reported service charge revenues increased by 4.9 percent to $8.6 billion for the year ending on June 30, 2018. However, banks reported a decline in service charge revenues of 1.7 percent to $35.3 billion over the same time period.
Service charges include: account fees, check cashing, overdrafts, penalties for early withdrawal, etc., but does not include swipe fees.
When controlled for asset size, the incidence of service charge revenues at credit unions was nearly double that of banks as of June 30, 2018. Service charge revenues as a percent of assets were 0.43 percent at credit unions versus 0.21 percent at banks.
I'd be curious to see those numbers controlled for deposit size instead of asset size. Given the leverage of banks compared to CU's I'm guessing the bank asset numbers are inflated.
ReplyDeleteAlso, comparing service charges with the liabilities creating the charges would be a more accurate representation of their concentration.
It is interesting that the story actually said the reason for the increase was a greater abundance of low fee/free checking accounts at CUs versus banks.
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