Credit Union Strategic Secrets
The Future for Banks & FinTechs lies with Credit Unions’ High Expenses & High Fee Revenue
Lake Forest, IL (April 30, 2019) Shane Sullivan played grammar school football and in 8th Grade was 6’ tall and weighed 310 lbs. His team won almost every game, even though Shane was very slow carrying his heavy frame. Shane’s team lost in the playoffs, and he never played football again. Credit Unions are like Shane. CUs support a heavy frame of expenses – over 20% higher than their competition. Yet, CUs offset these high costs with high service charges on deposit more than twice banks. “Could Shane be predicting a future for all depositories?” so asks a new Moebs Study.
“The CUs have an outstanding brand,” notes Michael Moebs, Economist & CEO of Moebs Services, an economic research firm. “Yet, offsetting costly operational expenses with high service charges cannot go on forever,” says Moebs. “As the economy improves, CUs need to reduce both their expenses and fee prices. Anyone in deposit gathering needs a sharp strategic eye on expenses and fees - for this is the future.”
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Written By: m.moebs
Date Posted: 4/30/2019
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