WASHINGTON–New data on what is driving non-interest income at credit unions has been released by Callahan & Associates.
The numbers, based on a July survey of 170 CUs across 40 states, sought to probe current and emerging sources of non-interest income; policy implications on non-interest income, and priorities to enhance non-interest income, Callahan’s said.
Among the findings:
- Total card-related interchange and fee income, including debit, credit, and prepaid cards, accounted for 42.3% of total non-interest income in 2015. The largest component of non-interest income among survey respondents was debit card interchange and fee income, which accounted for 30.2% of total non-interest income, Callahan’s said.
- Credit card interchange and fee income reached 12.0% in 2015, which shows a growing role in non-interest income for credit unions. High consumer confidence and spending, as well as new and improved reward programs at credit unions, contribute to this growing concentration, according to the company.
- Prepaid card income is still minimal for credit unions, which was reflected in its 0.1% concentration of total non-interest income. Despite this low dependency, there is a growing focus on prepaid cards within the credit union industry, especially among financial health advocates, Callahan’s said.
For additional findings, including the top three emerging areas for new non-interest income, go here.