Non-interest income for credit unions: Planning and understanding

All over the world, the coronavirus has had a devastating effect on businesses and economies. Financial institutions have been no exception. One of the areas where credit unions have seen a decline in revenue is non-interest income. Traditionally, non-interest income, which includes income generated primarily by services and transaction fees, helps credit unions maintain their bottom lines.

However, since the start of the pandemic, credit unions have noted a steady decline in non-interest income. With so many people out of work and the future of the economy uncertain, people are looking to save money any way they can. That means they want more services for less cost, which puts many businesses, including credit unions, in a difficult position. In the months and years ahead, CU’s must be savvy and creative about how they generate non-interest income while also keeping their members satisfied.

Traditional ways to generate non-interest income

Understanding how non-interest income works and some of the popular ways it’s being generated is the best way to make an informed decision for your CU moving forward. Here are some of the most popular and member-friendly ways to generate non-interest income (NII):


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