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A slowing economy and an inverse yield curve have combined to make this a very challenging time for America’s credit unions. While opportunities still exist to grow lending portfolios, now more than ever, it’s important for credit unions to generate more non-interest income. Investing in the right enabling technologies is vital to that goal and those technologies that support the following services should be in your short-range plans if they are not already in use.

oCourtesy payment. Offering courtesy overdraft already has proven to be a real “home-run” for many credit unions, though it’s still controversial in some circles. Done right, it serves your credit union and your members well: increasing fee income (often substantially) while providing a valued service that can reduce costs for members and help preserve their relationships with merchants. Look for technology solutions that allow you to offer courtesy overdraft across all channels, including ATM, ACH and debit. You should provide flexibility in setting member qualification criteria and overdraft limits, including overdraft payments, fee assessment, and member notice generation. As a prudent precaution, you should track member usage regularly to spot potential abuse and intervene when necessary.

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