Since the onset of the COVID-19 pandemic, bank and credit union overdraft fees have plunged 49% industry-wide according to a recent study published by S&P Global Market Intelligence. Strunk, is focused on helping banks and credit unions return overdraft/NSF fee income during this unprecedented struggle. Overwhelmingly, the second quarter has been a very difficult time for overdraft/NSF fee income and Strunk has an overdraft privilege review program for banks and credit unions to help return fees to pre-COVID levels.
The study goes on to further explain some of the reasons behind the significant downturn in overdraft/NSF fee income for banks and credit unions. As expected, there was a drop in consumer spending during the onset of the pandemic. There was also liquidity created by government stimulus money that contributed to the reduction in overdraft/NSF fees. Many banks and credit unions reported significant fee waivers in an effort to help account holders impacted by the COVID-19 pandemic.
Dan Roderick, CEO at Strunk said, ‘what happens from here is difficult to forecast given the unprecedented nature of the cause of this particular economic downturn’. Most analysts and bankers say they do expect a rebound in consumer spending behavior in the third quarter as the economy continues to reopen. However, it is expected that the deposit fee line item will remain below historical trends. One thing we can be sure of is that times have changed, and we are in uncharted territory.
Bank and credit union overdraft programs are consistently a hot topic amongst regulators but Strunk has the ODP software to make sure your program is fully compliant, even during an economic situation like we are experiencing. Compliance is more important than ever and Strunk is here to help. If you have questions regarding overdraft privilege programs for banks or credit unions please do not hesitate to contact Strunk at email@example.com or visit the Strunk website for more information.
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