Credit Unions in the US - Industry Research Report

Credit worthy: As the economy returns to normal, demand for credit union services will likely grow

Credit Unions industry operators provide depository and lending services to members of a specific community. Over the five years to 2022, the industry experienced growth, stemming from increased membership and rising interest rates throughout the majority of the period. As macroeconomic conditions improved through 2019, industry operators benefited from increased consumer borrowing, especially as interest rates rose alongside borrowing activity. However, in 2020, lower demand as a result of COVID-19 (coronavirus) hampered industry activity and growth. Resulting economic uncertainty led consumers to decrease their spending in 2020, while interest rates declined as a result of the Federal Reserve lowering the Federal Funds Rate to the zero-bound range. Consequently, revenue is estimated to increase marginally by 0.6% in 2020. However, as the Federal Reserve increases interest rates in an attempt to curb high inflation, industry revenue is expected to benefit. Overall, industry revenue is expected to increase an annualized 6.7% over the five years to 2022 to $103.3 billion, with a 10.7% incline in 2022.

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.