Is Increasing Overdraft Revenue at Credit Unions a Good Thing?
Tina Orem in a January 07, 2019 article in CUTimes.com writes: “Credit unions made an extra $500 million in overdraft revenue last year, but banks and thrifts made about $400 million less, according to new data from financial institutions analytics company Moebs Services.”
Research at TCT Risk Solutions (TCT) finds that many credit unions subsidize their lending programs with non-interest income. Non-interest income is not a stable source of revenue and credit unions need to focus more on assuring their lending programs are profitable.
TCT’s Risk Based Loan Pricing Tool assures credit unions can build their loan portfolios to profitable levels. TCT’s Credit Migration Tool assures credit unions are managing the risk in their loan portfolios.