The quest for non-interest income

In the neverending quest for non-interest income, financial institutions can find themselves in a bind: income is necessary to run any business, of course, but lenders often feel that seeking out income and fees runs contrary to their customer service missions. Also, lenders tend to fear that adding or increasing fees and other charges may drive customers to competitors.

If your financial institution needs help justifying fees and other non-interest income, think about how those charges simply amount to fair compensation for value provided to your customers.

• Without income, your institution would cease to exist and be unable to provide customers with any services at all.
• Like any other business, it’s fair for financial institutions to charge for servicesthat offer convenience and time savings.

 

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