Industry Analysis & Industry Trends
Despite financial uncertainty and a tighter lending environment, credit unions have managed to achieve moderate growth over the past five years. Nevertheless, rising external competition is leading credit unions to consolidate, which has enabled them to reduce labour costs and take advantage of new technologies. During the next five years, consolidation will continue to help credit unions achieve economies of scale and increase their asset base. With increased size, they will be able to compete better on fee pricing and interest spreads... purchase to read more
Industry Report - Industry Products Chapter
Residential mortgages are expected to account for about 50.4% of industry revenue in 2015. Residential mortgages include mortgage product offerings for home purchases and refinancing options for existing homeowners. Credit unions offer mortgages in the common formats of 15-year or 30-year instalments with fixed or variable interest rates. While credit unions collect fees for the origination of a mortgage, the majority of revenue comes from interest income and other servicing fees (i.e. late fees).
Consumer loans are expected to account for 19.3% of industry revenue in 2015. Credit unions issue consumer loans for education, automobile purchases and other personal expenditures... purchase to read more