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Credit Union Industry Projected to Grow 3.1 Percent Annually Through 2017
Oct 18 - Oct. 18 is International Credit Union Day, but what does the credit union industry have to celebrate? According to the latest report from industry research firm IBISWorld, credit union industry profitability is expected to increase and revenue is set to continue on a steady, upward trajectory of 3.1 percent per year on average to $54.2 billion in the next five years, even though the number of credit unions in the United States will actually decline.
“Industry revenue returned to growth in 2010 and 2011 on the back of a stabilizing economy and a larger customer base due to loosening member requirements,” said IBISWorld Credit Union Industry Analyst Eben Jose. “These trends are expected to continue this year, with US-specific revenue rising an estimated 4.8 percent to $46.5 billion, and grow through 2017.”
While future growth is expected, the industry landscape will be different than it was during the past five years as profitability improves and consolidation changes the structure of the industry and its participants. The number of credit unions in the United States is forecast to fall at an average annual rate of 1.6 percent to 6,599 by 2017 as establishments look to cut costs and take advantage of economies of scale.
“As the industry consolidates, it will be better able to compete with other lending institutions, such as commercial banks, savings banks and other nonbank lenders, which can offer greater access and a wider selection of services due to their size,” said Jose. “Even as competition intensifies, credit unions are better suited to offer lower interest rates, due to their nonprofit status and dedication to providing strong customer service. As a result, membership is expected to continue climbing to record levels.”
About IBISWorld, Inc.
Recognized as one of the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit www.ibisworld.com or call 800-330-3772.