$9B In annual service charge revenue for CUs

A new report reveals that since the Great Recession, it has been credit unions—not banks—that are generating more in fee income—and they are doing it by having lower charges.

“Exactly 11 years ago, service charges for all depositories hit an all-time high of $49.5 billion,” explained Michael Moebs, economist and CEO at Moebs $ervices, citing the company’s latest Service Charge Study. “Since then, banks are at only 84% of their overall 2008 service charge totals, while credit union have soared to 132%.”

Moebs further pointed out that for the first time ever credit unions this year hit more than $9 billion in annual service charge revenue.

Since 2008, overall FI service charges have fallen and are now $44.7 billion. Service charges as a percent of assets were 32 basis points of total industry assets in 2008; today, service charges in 2019 are only 22 BPs, Moebs said.


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