Overdraft fees have plunged 49% due to COVID-19 pandemic

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At Strunk, we have been focused on assisting clients with an unprecedented struggle these past few months due to the current COVID-19 pandemic. Overwhelmingly, the second quarter has been a very difficult time for overdraft/NSF fee income. According to a recent study published by S&P Global Market Intelligence overdraft/NSF income is down 49% industry-wide in Q2 2020.

Further, the study goes on to explain some of the reasons behind the significant downtown. As we have expected, drop in consumer spending and liquidity created by government stimulus money are the largest contributors. Many financial institutions have also reported significant fee waivers in an effort to help account holders impacted by COVID-19.

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.

We are all aware that overdraft programs are consistently a hot topic amongst regulators and at Strunk, we’ll make sure your program is fully compliant, even during an economic situation like we are experiencing. Compliance is more important than ever and we are here to help. If you have questions regarding your current program please do not hesitate to contact us at info@strunkaccess.com.

An independent certified public accountant has examined Strunk’s operations and found them to be in compliance with the AICPA’s Trust Service Principles. It was determined that Strunk meets the Security, Availability, Processing Integrity, Confidentiality, and Privacy criteria for SOC 2 established by the AICPA.