COVID Shrinks Fees
Are you prepared for the COVID Recission? Tips on recapturing fees the consumer will do.
Comparing COVID to Great Recession Shows Ways to Alter Fees
Lake Forest, IL (October 27, 2020) Fee Income, or service charges on deposits, has shrunk more in the first half of 2020 than any other category on financial statements. All of this due to the COVID health crisis, or pandemic, precipitating a financial recession – COVID Recession. The Mortgage Crisis created the Great Recession 12 years earlier.
Comparing COVID vs. Great Recession Tells Us What?Comparing these two recessionary eras gives direction to help the consumer and aid depositories’ bottom line during COVID. The use of price, volume, and transaction credits pop out in the Moebs Research Report in the comparison.
Service charges fell 5 basis points (BP) representing a loss of $5 Billion in fees collected by banks and credit unions (CUs). In comparison, during the Great Recession (GR) $1.5B in fees was gained. The drop in fees is a direct result of the $3 Trillion increase of deposits from Federal Reserve money stock growth. READ FULL ARTICLE
Written By: m.moebs
Date Posted: 10/27/2020
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