Consumer checking is a loss-leader

first_img 16SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr More than 50% of depositories make money on business checking accounts. In contrast, less than 7% of consumer checking portfolios make money for institutions, a new report reveals.That same report also offers a Top 10 List of reasons why credit unions should offer business checking accounts.Consumer checking is a loss-leader for most depositories, while business checking is the “goose laying the golden eggs,” said Michael Moebs, economist and CEO at Moebs $ervices, which recently completed a study on business checking. “Business checking offers a good source of fee income, balances, and new loan business.”Total business checking deposits are currently $673 billion, which is nearly $198 billion over the norm since 1992. continue reading »last_img

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