Industry Analysis & Industry Trends
Like the rest of Australia's Finance subdivision, credit unions have been hurt by the financial crisis and a slowing economy. However, their mutual status, prudent lending and heavy reliance on deposits for funding have shielded the industry to a large extent. Following two years of decline, industry revenue rebounded in 2010-11 due to higher interest rates. However, the exit of several industry participants and the expiry of the First Home Owner Boost dampened residential home loan growth and put further pressure on industry revenue. Credit unions were later bombarded with interest rate reductions, and 2012-13 was the industry's worst year in a decade. As a result of these conditions, industry revenue is forecast to decline at a compound annual rate of 6.0%... purchase to read more
Industry Report - Starting a New Business Chapter
The Credit Unions industry faces moderate barriers to entry. The regulatory requirements imposed on potential entrants, the difficulty in accessing funds, the existing presence of credit unions' branch networks in potential markets and the difficulty in attaining and retaining a loyal customer base are all barriers to entry.
The regulatory requirements imposed on credit unions and any potential businesses wanting to enter the industry are highly stringent. This makes it difficult for new entrants to set up operations and compete successfully... purchase to read more