More and more credit unions are focusing on non-interest income to make up for the lack of loan income coming in. While increasing non-interest income, it is important to keep member relations and experience at top of mind.

Located in Quincy, IL, Member’s First Community Credit Union is a non-for-profit member-owned financial cooperative. Since 1989, When Teri McEwen, CEO, joined the credit union, it has grown from $1 million in assets to $72 million in assets. The credit union wanted to increase their non-interest income while improving the experience of their members. Member’s First Community CU implements 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. One of the key products the CU uses is Sharetec’s Tiered Courtesy Pay feature which provides the credit union with a risk-based fee structure. Previously the CU used a flat rate courtesy pay fee structure for their members for many years and had great success but the CEO wanted to do even more for the credit union and their 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.

CEO, 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 this tiered structure is a fee program that is fair to both the credit union and the member.

The benefits and results have been outstanding for Member’s First Community Credit Union. With income increases of 11%, reduced fee reversals, improved member relations and reduced expenses, there is no questions why this credit union is thriving. Having the ability to offset the cost of processing and monitoring overdrafts and providing a cushion (revenue stream) that is used to offset potential losses, is a huge reason why the credit union is experiencing rapid growth.

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