Credit Unions Are Going To Have To Strike‘Fee’ Balance

CHICAGO - (08/26/05) Credit unions are going to have tostrike a crucial balance when it comes to fee income. Former NCUAChairman Dennis Dollar said that “fee income will becomecrucial to credit union bottom lines.” But he also noted,“If our fee structure remains the same as some of thefor-profit institutions, a lot of members are going to ask‘Where is the value?’ in belonging to a credit union,and it will be that much harder to get them to stand up in defenseof credit unions on Capitol Hill or the state capitols.” Feeincome, said Dollar, is not inconsistent with credit unionphilosophy. Rather, he stressed, greater fairness and enhancedmarketplace sensitivity in fee income is a credit union memberservice opportunity.