Industry Analysis & Industry Trends
Like the rest of Australia's Finance subdivision, credit unions have been hurt by the global financial crisis and a slowing economy. Their mutual status, prudent lending and heavy reliance on deposits for funding have shielded the industry to a large extent, but the past five years have been difficult nonetheless. As the Australian economy transitions from mining to non-mining sectors, the Reserve Bank of Australia has dropped interest rates to historic lows. This decimated the revenue generated from lending portfolios. Even more detrimental was the effect of credit unions leaving the industry and taking portions of revenue and asset base with them. As a result, industry revenue is forecast to decline at an annualised 7.1% over the five years through 2013-14 to reach $2.9 billion... purchase to read more
Industry Report - Industry Products Chapter
In general, credit unions offer the same basic products and services as the commercial banks, though of a more limited variety due partly to their small size and more limited resources. Unlike banks, whose customer base is split between individuals and businesses, credit unions primarily service individuals. Due to the significance of this market, credit unions' most popular products are residential and personal loans. The mix of industry products has continued to shift towards residential lending over the past five years.
Real estate lending mainly consists of mortgages for homeowners. These can be variable or fixed interest-rate mortgages and tend to have maturities of over 20 years... purchase to read more