Survey results released by Callahan & Associates reveals that non-interest income sources continue to emerge within the credit union industry with limited options for income reporting and composition on the 5300 Call Report. The results stem fro a survey of 170 credit unions in 40 states by Callahan earlier this summer. The survey focused on three areas:- Current and emerging sources of non-interest income.
- Policy implications on non-interest income.
- Priorities to enhance non-interest income.
Debit, credit, and prepaid card income tops non-interest income at credit unions. Total card-related interchange and fee income, including debit, credit, and prepaid cards, accounts for 42.3% of total non-interest income in 2015. The largest component of non-interest income among survey respondents was debit card interchange and fee income, which accounted for 30.2% of total non-interest income.
Credit card interchange and fee income grew to 12% in 2015, as a result of high consumer confidence and new and improved reward programs at credit unions.
Income from prepaid cards remains minimal at 0.1% of total non-interest income. Still, there's a growing focus on prepaid cards for credit unions, especially among financial health advocates.
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