LOS ANGELES—U.S. credit unions will continue to grow at a 3.1% average rate over each of the next five years, according to research compiled by IBISWorld.
That would mean an increase of $54.2 billion in total assets, even as the number of CUs continues to decline. The firm is also foreasting revenue rising an estimated 4.8% to $46.5 billion as the growth continues through 2017.
"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 the company. "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."