ARLINGTON, Va.–A number of trends continue to nibble away at credit unions’ non-interest income, an issue that NAFCU’s economist said the trade group is monitoring.
“Broadly speaking, fee income is declining and we definitely see that in interchange space,” said NAFCU Chief Economist Curt Long. “That is an aspect that does threaten other products, like free checking, which credit unions strive to provide to their members. I think interchange is one we try to protect for our members with the goal that they have as much scope as possible.”
As for new legislation that takes aim at overdraft fees, Long said credit unions have traditionally been “responsible actors” in the space.
“Credit unions have not been doing the kinds of things that raise the eyebrows, like ordering transactions in a certain way to maximize charges,” he said. “The other piece of it is members and consumers more broadly like the product.”