October 19, 2022
As examiners focus on income, mergers will continue to be commonplace. As a result, more credit unions are focusing on non-interest income to make up for lack of loan income. Members “First” Community Credit Union uses a number of key products to generate incredible income and decrease their expenses. This effort has catapulted them into the top 1% ROA of all credit unions in the country.
Members “First” Community Credit Union used a flat rate courtesy pay fee structure for their members for many years with success, however, Teri McEwen, CEO of Members “First” Community Credit Union wanted to do more for the credit union and its members.
Sharetec’s Tiered Courtesy Pay feature gives credit unions more flexibility in helping their members when it comes to over-drafts while allowing them to setup granular risk-based fee structures. Members who frequently overdraw their accounts pose a higher risk to the credit union, and thus should pay a higher fee then those members who occasionally overdraw their accounts.
Teri McEwen remarks, “We have offered traditional courtesy pay for a while, but when we switched to Sharetec’s Tiered Courtesy Pay, our income increased by 11% and members love the flexibility of the program.” With Tiered Courtesy Pay, members receive free or discounted overdrafts at first, then the fee gradually increases the more the member uses the service. The end result of implementing a Tiered Courtesy Pay feature is a fee structure that is fair to both the credit union and the member.
