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.  Earlier this summer, Callahan & Associates surveyed 170 credit union executives from 40 states to gain insight into their current and emerging sources of non-interest income. The Non-Interest Income survey focused on three overarching areas:

  • Current and emerging sources of non-interest income.
  • Policy implications on non-interest income.
  • Priorities to enhance non-interest income.

The results from the survey revealed that debit, credit, and prepaid card income topped non-interest income at credit unions.

Total card-related interchange and fee income, including debit, credit, and prepaid cards, accounted for 42.3 percent 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 percent of total non-interest income.

Credit card interchange and fee income reached 12 percent in 2015, which shows a growing role in non-interest income for credit unions. High consumer confidence and spending, as well as new and improved reward programs at credit unions, contribute to this growing concentration.

Prepaid card income is still minimal for credit unions, which was reflected in its 0.1 percent concentration of total non-interest income. Despite this low dependency, there is a growing focus on prepaid cards within the credit union industry, especially among financial health advocates. Read more at Callahan News.