Gaining interest: A rise in the homeownership rate and consumer spending will increase revenue

The low interest environment has continued to challenge credit unions in Canada. Additionally, sluggish GDP growth, record levels of household debt and high unemployment had a negative effect on business conditions in Canada. The low point for the industry was in 2016, as the Bank of Canada lowered the overnight rate in a bid to stimulate the economy in the immediate aftermath of several commodity price collapses. However, conditions have turned around since then. This industry has consolidated significantly over the past decade. Tough external competition in the form of commercial banks and economies of scale have pushed operators to merge to compete with banks and other competitors...read more.

Industry Statistics & Market Size
Revenue
$17bn
Annual Growth 13-18
1.5%
Forecast Growth 18-23
Profit
Employment
65,866
Businesses
712
Market Share of Companies

Industry Threats & Opportunities

  • Tough external competition and economies of scale pushed operators to merge to compete with banks
  • Interest rates have remained at historically low levels during this decade
  • A persistently competitive environment poses a potential threat to the industry
  • Industry Report - Industry Locations Chapter

    The location of credit union establishments is largely dependent on population trends, with the highest percentage of establishments located in Quebec and Ontario at 34.0% and 18.4%, respectively, in 2018. With an estimated population of nearly 36.6 million dispersed across a large geographic area, most of the population tends to live in the southern part of the country, which is also the home to 17 of Canada's largest cities...purchase to read more.

    Additional Insights for the Credit Unions Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Credit Unions Industry are

  • Superior financial management and debt management
  • Ability to raise revenue from additional sources
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Overnight rate and External competition for the Credit Unions industry in the Credit Unions industry impact industry performance..

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    What's in this report

    What is the Credit Unions Industry?

    This industry 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.

    Industry Products
  • Residential mortgages
  • Business and government loans
  • Consumer, credit card and other personal loans
  • Industry Activities
  • Accepting members' share deposits
  • Offering members consumer loans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Overnight rate
  • External competition for the Credit Unions industry
  • Housing starts
  • New vehicle sales

  • Current Performance
  • Low net interest margins
  • Mortgage potential
  • Chart: Revenue Growth

  • Industry Outlook
  • Increased demand
  • Industry landscape
  • Table: Credit Unions Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Credit Unions Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction In Canada
  • New Car Dealers in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Employment & Recruiting Agencies in Canada
  • Finance and Insurance In Canada
  • IT Consulting in Canada

  • Products & Services
  • Residential mortgages
  • Business and government loans
  • Consumer, credit card and other personal loans
  • Chart: Credit Unions Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Large
  • Rural
  • Small
  • Medium
  • Chart: Major Market Segmentation for the Credit Unions Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Credit Unions

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Credit Unions Industry

  • Industry Globalization
    Desjardins Group,
  • Table: Desjardins Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Credit Unions Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Credit Unions Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Overnight rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Caisses Populaires
  • A member-owned financial institution similar to a credit union.
  • Common Bond
  • The social connection among the members of credit unions and cooperative banks.
  • Deleverage
  • Reduce debt levels.
  • Dependency
  • Populations that structurally need a greater deal of social or economic support. Some examples are seniors, children and those that are no longer in the workforce.
  • Material Deprivation
  • Issues of economic inequality, Some examples are those who are below the low-income cut-off, receive government payments, unemployed and single-parent families.
  • Mortgage
  • A loan financing the purchase of real estate with specified payment periods and a fixed or variable interest rate.
  • Provision For Credit Losses
  • An amount set aside as an allowance for bad debts, which are debts where the customer defaults or where the terms of the loan need to be renegotiated.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Credit Unions market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Credit Unions:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Credit Unions market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Credit Unions, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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