Boost service in three areas in 2015

Checking without overdraft fees, card security and access to liquidity.

by: Bob Giltner

Credit unions take great pride in their service to members, so it may be surprising to hear that many CUs are, unintentionally, underserving their members. Based on member demand, credit unions should be providing additional services in three areas: a checking account without overdraft fees, a secure debit card and easy online access to liquidity.

No-Overdraft-Fee Checking
Currently, few or no U.S. credit unions offer checking accounts without overdraft fees. Meanwhile, Wal-Mart, prepaid cards and neo-banks like Simple make a living by promoting checking accounts without such fees. Some argue all accounts have no overdraft fees if members just balance their checkbooks, and that overdraft services protect members from merchant return check charges. Yet such a perspective misses the changes in member needs and the marketplace.

Millennials, those aged 18 to 35, now comprise the largest age segment in the nation, and they are clearly opting for non-bank payment providers, as shown in the recent Viacom report, “The Millennial Disruption Index,” which surveyed 10,000 people within this age group.

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