Debit interchange and overdrafts are still expected to be the top noninterest income drivers for credit unions, despite changes being made to both sources.
"It will still be these two areas leading the way, albeit at a reduced rate," said Fabio Biasella, vice president and managing director of strategic advisory services for Raddon Financial Group. "In response, I have seen credit unions begin to revisit their investment and insurance programs as alternate sources of steady fee revenue. However, there is some ramp up time with this. Debit use and NSF activity will remain predominant consumer behaviors."
Biasella said that more than 75% of a typical credit union's member base use debit cards, and that 7% of members have frequent NSF activity.
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