Credit unions are relying more on non-interest income to grow. Over the past 10 years, non-interest income as a percentage of gross income has risen from 19% in 2008 to 27% in 2018, according to the December 2008 and the December 2018 call report data from the National Credit Union Administration. One of the primary benefits of non-interest income is that it is not tied to the cyclicality of changes in the market and in interest rates.
Traditionally, financial institutions have derived much of their non-interest income through fees like credit card and account fees or monthly services charges. But, as regulations change and credit unions desire to provide value and a superior experience for members, more organizations are moving away from relying on fee-based income. In this article, we will explore opportunities for your credit union to augment non-interest income in a way that focuses on putting members first while also boosting the bottom line.
Invest in CUSOs to Boost the Bottom Line
Credit union service organizations have grown in popularity. Not only do they provide valuable services for members, they are also an excellent source of non-interest income for credit unions. According to NCUA, the top CUSO services are lending, member services, and payment and electronic transaction processing.
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