BALTIMORE-With pending regulations putting pressure on card and overdraft revenue, Creditor Resources Inc. recommends focusing on fee income from non-core products.
"Every credit union this year is revisiting fee income opportunities, but those tend to be around their core business," said Todd Schubert, business unit leader. "With the regulatory changes and NCUA assessments, it has become very important for credit unions to focus on fee income opportunities from non-core products."
Schubert recommended that credit unions explore alternative programs such as credit insurance, debt cancellation insurance, term life, and gap insurance and service contracts for auto loans.
Not only should CUs consider adding the services to drive fee income, they should also promote them on their websites. "Credit unions are offering so many services on their websites, such as account opening and loan approval, that they are missing opportunities to sell some non-core products there. How many members get a loan through the website and never come into the branch?"
