Despite growing to nearly $50 billion in revenue in 2016, the credit union industry isn’t nearly as large as the financial services industry (which we define as being comprised of commercial and investment banking institutions, such as JPMorgan Chase and Goldman Sachs). But does it contain other appealing aspects for the accounts receivable management (ARM) industry? As we know from analyzing the financial services industry, commercial and investment banking institutions and consumers were, generally speaking, acting incredibly irresponsibly leading up to the Great Recession. Lenders provided high-risk loans and consumers utilized unrepayable levels of credit to fund purchases. Credit unions maintain similarities to commercial and investment banking institutions but the difference in their purpose, among other things, significantly impact lending habits and financial successes. As we can see from the below graph of Credit Union Industry Revenue, credit unions experienced revenue decline at the peak of the Great Recession, but it wasn’t particularly terrible, especially after considering the recession’s impact on the financial services industry. Nearly a decade after the onset of the worst financial crisis since the Great Depression, the economy has more or less recovered, and the credit union industry is looking increasingly more attractive to investors and ARM companies alike.
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