DALLAS-Credit unions may be focused on getting the MBL cap raised, but are they paying enough attention to the fee income opportunities readily available-and that members are willing to pay-for small business services?
David Foss, president of ProfitStars, a division of Jack Henry and Associates, is not so sure credit unions are making the most of this opportunity that could well grow if the MBL cap is raised.
"There are a lot of fee opportunities that come into play when you are working with small business. These members, these businesses, are accustomed to paying for services beyond interest on a loan. Fees are not foreign to them. This is an easy story to tell if you get comfortable with selling members business services instead of just selling traditional member-facing products."
Citing examples of fee opportunities with ACH origination, transaction processing, and accounts receivable financing, Foss added,
"This is definitely a new channel to increase non-interest income. But not a lot of credit unions have figured out how to most effectively serve small business."
For info: www.profitstars.com.
