Credit Unions in the US
The Credit Unions industry experienced tremendous growth since 2015 due to strong demand for credit. Strength in the economy, as reflected in greater disposable income and access to credit, have incentivized individuals and businesses to demand loans for automobiles and credit cards. Likewise, increasing home prices have led to an increase in demand for mortgage loans offered by industry operators. Furthermore, as interest rates rise, demand for credit union loans, which typically have lower interest rates than retail bank loans, is expected to increase. Over the next five years, changes in the regulatory environment will shape the direction of this industry. Greater demand for credit unions increases their systemic importance to the overall economy. Furthermore, these intermediaries are federally insured, so any liquidity crisis that requires federal intervention would place a burden on taxpayers. Despite a challenging regulatory landscape, industry revenue is expected to increase over the five years to 2023. Continued interest rate hikes will boost profit margins for this industry, while rising investment yields are also expected to boost investment income.
This industry comprises financial institutions known as credit unions or cooperatives. Credit unions are member-owned and provide banking services, which primarily include deposit taking and lending, to these same members.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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