Are you a Credit Union or a Fee Union?

Register Here ​

For decades financial analysts have urged credit unions to operate in a position where net interest income is sufficient to cover operating expenses. In this situation the core business (lending) is providing adequate revenues to cover operational expenses, a condition that is deemed healthy in all businesses.

For over two decades, credit unions experienced a reduction in loan yields and interest income as they competed for a diminishing share of A+ and A loans. At the same time, they began to rely increasingly on fee income to subsidize their bottom line. This has resulted in a situation where more than 60-65% of all credit unions must generate significant fee income just to break even. If regulations change and restrict fee income substantially, the result will be disastrous for these credit unions.

Over this same time frame, roughly 40% of credit unions have created operational environments that do rely on a fee subsidy but instead generate adequate net interest income to cover operating expenses. This means all fee income they collect flows directly to ROA and building equity.

This webinar will examine select strategies that have been employed effectively by these credit unions to avoid a Net Fee Subsidy and strengthen their financial position.

Who Should Attend: CEO, CFO, CLO

Presenter: Randy Thompson, Ph.D. CEO of TCT Risk Solutions