Fee Revenue Inches Forward
While Service Charges are still down in revenue for financial institutions yet starting to nudge up – see why and how below.
Credit Unions Increase ODs as Banks Decrease ODs
Lake Forest, IL (June 22, 2021) Service charge revenue nosed up by 0.6% to $40.7 Billion in the 1st Quarter of 2021, yet still down 8.9% from December 2019 the start of the coronavirus.
“Most importantly,” states Michael Moebs, Economist & CEO of Moebs $ervices, Inc. – a financial service economic research firm, “service charges declined -0.2% for banks and -0.8% for savings banks, while credit unions (CUs) were a furlong ahead at 4.0%. Overall service charge fees at CUs bottomed out in the 2nd Quarter of 2020 and have been rising since, while banks and thrifts have had ups and downs.”
More than 75% of service charge revenue comes from overdraft fees. Similar to overall service charges OD revenue for the 1st Quarter of 2021 changed: -0.1% for banks, -0.6% for savings banks and up 4.2% for CUs. READ FULL ARTICLE
Written By: m.moebs
Date Posted: 6/23/2021
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