Credit Unions and Building Societies in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: May 2024
ANZSIC K6223Revenue
$1.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
3,598
Businesses
33
Wages
$XXX.Xm
Credit Unions and Building Societies in Australia industry analysis
The Credit Unions and Building Societies industry has faced challenging operating conditions over the past few years. While low interest rates after the COVID-19 outbreak cut into interest income generated on providers' loan books, the RBA has since been consistently hiking the cash rate. This trend has elevated interest income through higher interest rates on existing loans. Government incentives, like the First Home Guarantee scheme, have fuelled demand from first-homeowners despite declines in mortgage affordability. Many credit unions and building societies have pivoted to providing banking services and, therefore, exited the industry to remain viable and appeal to the younger demographics. Providers have entered partnerships or mergers to pool assets and maintain profitability. Nonetheless, this strategy was insufficient to offset the intense competition caused by the mortgage war, causing profit margins to contract along with revenue. Overall, revenue is expected to dive at an annualised 8.4% to $1.6 billion over the five years through 2023-24. This trend includes an anticipated plunge of 4.6% in the current year, attributable to Newcastle Permanent Building Society Limited's exit from the industry.
Trends and Insights
- The Australian government's incentives, like the First Home Guarantee, have promoted homeownership and bolstered mortgage demand for credit unions and building societies. This has benefited these institutions by expanding member interest in more personalised loan services.
- Owner-occupied mortgages are the industry’s largest product segment. Government incentives and a surge in demand from property owners have outweighed decreasing mortgage affordability, making housing loans a prime avenue of interest income.
- Many credit unions and building societies set up shop in New South Wales. The state accounts for the largest share of Australia’s population and has significant economic activity.
- Consumers wield significant power because of the vast selection of traditional banks, non-bank lenders and fintech platforms. Online price comparison apps have ramped up competition, enhancing transparency and empowering customers to negotiate better rates and services.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 8.4 % over the past five years, to reach an estimated $1.6bn in 2024.
Trends and Insights
Government incentives bolster mortgage demand from new homeowners
- The Australian government has introduced various incentives to bolster the housing market and promote homeownership, encouraging new homeowners to uptake financial products from financial institutions like credit unions and building societies.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Technological investments will be vital for credit unions and building societies
- Credit unions typically experience a higher operating expense to total operating income ratio than banks. This is attributable to their unique member-oriented, non-profit approach.
Biggest companies in the Credit Unions and Building Societies in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Newcastle Greater Mutual Group | 268.1 | |
Credit Union SA Ltd | 75.2 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Owner-occupied mortgages, Investment mortgages and Term and other loans. Owner-occupied mortgages is the largest segment of the Credit Unions and Building Societies in Australia.
Trends and Insights
Owner-occupied mortgages make up a growing share of revenue thanks to robust housing demand
- Owner-occupied mortgages can be variable or fixed-interest loans with maturities over 20 years.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Non-Depository Financing in Australia
- Finance in Australia
- National and Regional Commercial Banks in Australia
- Foreign Banks in Australia
Complementors
- There are no industries to display.
International industries
- Credit Unions in the US
- Credit Unions in Canada
- Non-Banks and Other Financial Institutions in New Zealand
Table of Contents
About this industry
Industry definition
The industry consists of financial institutions known as credit unions or cooperatives and building societies, which are owned by their members. Credit unions and building societies provide their members with banking services, mainly deposit-taking and lending.
What's included in this industry?
Owner-occupied mortgagesInvestment mortgagesTerm and other loansTransaction and deposit account servicesCompanies
Newcastle Greater Mutual GroupCredit Union SA LtdPurchase this report to view all 2 major companies in this industry.
Related Terms
MUTUAL ORGANISATIONSNET INTEREST MARGINCASH RATEIndustry Code
ANZSIC 6223 - Credit Unions and Building Societies in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Australian government's incentives, like the First Home Guarantee, have promoted homeownership and bolstered mortgage demand for credit unions and building societies. Thi...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Owner-occupied mortgages are the industry’s largest product segment. Government incentives and a surge in demand from property owners have outweighed decreasing mortgage affo...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Many credit unions and building societies set up shop in New South Wales. The state accounts for the largest share of Australia’s population and has significant economic acti...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Consumers wield significant power because of the vast selection of traditional banks, non-bank lenders and fintech platforms. Online price comparison apps have ramped up comp...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Credit unions and building societies are reclassifying themselves as mutual banks to appeal to younger demographics. This transition aims to modernise their image and provide...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Newcastle Greater Mutual Group's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Credit Union SA Ltd's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Newcastle Greater Mutual Group, and factors influencing its performance in the industry
- Description and key data for Credit Union SA Ltd, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
APRA plays a crucial regulatory role in credit unions and building societies in Australia. It enforces capital adequacy, risk management, and governance guidelines that ensur...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Intense competition from fintech companies and digital banking impacts the profitability of credit unions and societies. The transition of larger credit unions into mutual ba...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Credit Unions and Building Societies industry in Australia in 2024?
The market size of the Credit Unions and Building Societies industry in Australia is $1.6bn in 2024.
How many businesses are there in the Credit Unions and Building Societies in Australia industry in 2024?
There are 33 businesses in the Credit Unions and Building Societies industry in Australia, which has declined at a CAGR of 7.2 % between 2019 and 2024.
Has the Credit Unions and Building Societies industry in Australia grown or declined over the past 5 years?
The market size of the Credit Unions and Building Societies industry in Australia has been declining at a CAGR of 8.4 % between 2019 and 2024.
What is the forecast growth of the Credit Unions and Building Societies industry in Australia over the next 5 years?
Over the next five years, the Credit Unions and Building Societies industry in Australia is expected to decline.
What are the biggest companies in the Credit Unions and Building Societies market in Australia?
The biggest companies operating in the Credit Unions and Building Societies market in Australia are Newcastle Greater Mutual Group and Credit Union SA Ltd
What does the Credit Unions and Building Societies in Australia include?
Owner-occupied mortgages and Investment mortgages are part of the Credit Unions and Building Societies industry.
Which companies have the highest market share in the Credit Unions and Building Societies in Australia?
The company holding the most market share in Australia is Newcastle Greater Mutual Group.
How competitive is the Credit Unions and Building Societies industry in Australia?
The level of competition is high and increasing in the Credit Unions and Building Societies industry in Australia.
