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While the total number of credit unions in the United States declined from 2016 to 2024, the number of credit unions managing assets over one billion U.S. dollars grew. In 2016, there were *** such credit unions, rising to *** by the end of 2024.

What is a credit union?

Credit unions are member-owned and operated institutions that perform many of the same functions as banks. In recent years, their total asset value has grown steadily, making them a notable part of the country’s banking sector. However, their relatively small size presents two key disadvantages related to economies of scale: limited investment funds and fewer legal resources. Unlike major commercial banks with dedicated legal divisions, credit unions must navigate complex regulations with much smaller teams.

Economies of scope

While economies of scale often pose challenges for credit unions, economies of scope work to their advantage. Being rooted in smaller communities allows them to tailor products and services to local needs, fostering strong member loyalty and keeping millions of people banking with them.