Overdraft Behavior in A Crisis
Bankers are abandoning overdrafts. Credit Union may takeover. Learn why?
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As Banks Exit Overdrafts Will Credit Unions Takeover?
Lake Forest, IL (July 1, 2020) Banks are undoing overdrafts. At first it was just the too big to fail banks, but now it’s the community banks too.
The door is wide open for credit unions to take over the OD business.
Yet, are CUs moving to do more overdrafting and get more revenue?
Moebs $ervices, an economic research firm, recent extensive study of ODs at over 3,000 depositories identifies a significant transition. Using 2007, the year before the Great Recession, as the base; OD volume is down over ¼ at banks, yet up ⅕ at CUs. Banks are signally they want out.
“Credit unions greater than $250 million in assets are moving to get more ODs,” states Michael Moebs, Economist & CEO of Moebs $ervices. READ FULL ARTICLE
Written By: m.moebs
Date Posted: 7/1/2020
Number of Views: 323