Your article was successfully shared with the contacts you provided.
I would like to provide a quick response to the recent national coverage of Bank of America, JPMorgan and Wells Fargo cutting some overdraft fees. We analyzed our transactional data to determine what would happen if our credit union implement proposed changes outlined in the press coverage. Three scenarios were specifically reviewed: If the CU did not charge a fee for transactions that were less than $10. The result was a loss of 1% of our annual overdraft income. If the CU did not charge a fee if that the account balance was within $5 negative. The result was a loss of 1.5% of our annual overdraft income. If the CU charged for a maximum of four overdraft events per day. We found only twenty-five such events within one year’s time. I suspect banks will gladly let go of this small amount of fee revenue to gain the perception that they are softening their position in collecting overdrafts. The truth, at least from our data, is that the consumer would be largely unaffected. The banks are smart to push this campaign. Banks were portrayed in a positive manner to a national audience by an uninformed media.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing. Once you are an ALM digital member, you’ll receive:
Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers,
resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
Exclusive discounts on ALM and CU Times events.
Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Discover how smart credit union leaders are going digital - while playing to their strengths of low rates and high member satisfaction - to compete with big banks and tech startups for lucrative financial services.
Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!
Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
Exclusive discounts on ALM and Credit Union Times events.
Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.