Credit Unions in Canada - Industry Market Research Report

Lending hand: A rising overnight rate will support industry profit growth

The Credit Unions industry in Canada experienced growth over the past five years. As household incomes and borrowing needs have grown, credit unions' balance sheets have continued to expand. Encouraged by improving macroeconomic developments, the Bank of Canada raised the overnight rate target several times in 2018 and 2019, in turn raising the price of borrowing and boosting credit unions' incomes. Easing financial conditions in 2020 in response to the coronavirus compressed interest margins but expanded demand for credit, namely residential mortgages offered by industry players. Additionally, expanding disposable incomes and high savings rates due to government stimulus and altered household behavior during the coronavirus grew credit unions' deposits swiftly. Overall, revenue for the Credit Unions industry in Canada is expected to increase at a CAGR of 2.7% to $26.9 billion over the next five years, including an increase of 1.6% in 2023 alone.

The Credit Unions industry in Canada consists of financial institutions known as credit unions or caisses populaires. These institutions are member owned and provide banking services, mainly 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's key players and their market shares.