$1.6bn
$XXX.Xm
3,598
33
$XXX.Xm
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.
Industry revenue has declined at a CAGR of 8.4 % over the past five years, to reach an estimated $1.6bn in 2024.
Market size is projected to decline over the next five years.
Company | Market Share (%)
2024 | Revenue ($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.
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.
Owner-occupied mortgages make up a growing share of revenue thanks to robust housing demand
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.
Purchase this report to view all 2 major companies in this industry.
ANZSIC 6223 - Credit Unions and Building Societies in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
The Australian government's incentives, like the First Home Guarantee, have promoted homeownership and bolstered mortgage demand for credit unions and building societies. Thi...
Learn about an industry's products and services, markets and trends in international trade.
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...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
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...
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.
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...
Learn about the performance of the top companies in the industry.
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...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
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...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
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...
Including values and annual change:
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.
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:
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:
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.
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.
Unlock comprehensive answers and precise data upon purchase. View purchase options.
The market size of the Credit Unions and Building Societies industry in Australia is $1.6bn 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.
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.
Over the next five years, the Credit Unions and Building Societies industry in Australia is expected to decline.
The biggest companies operating in the Credit Unions and Building Societies market in Australia are Newcastle Greater Mutual Group and Credit Union SA Ltd
Owner-occupied mortgages and Investment mortgages are part of the Credit Unions and Building Societies industry.
The company holding the most market share in Australia is Newcastle Greater Mutual Group.
The level of competition is high and increasing in the Credit Unions and Building Societies industry in Australia.