Number of credit unions in the U.S. 2016-2023, by assets

The number of credit unions in the United States declined, but the number of credit unions managing assets exceeding one billion U.S. dollars increased during the period from 2016 to 2023. In 2016, there were 272 credit unions that large, but the number increased to 432 at the end of 2023.  

What is a credit union?

Credit unions are created, owned, and run by their participants, and they perform many of the same functions that banks do. The total value of assets in such institutions increased steadily in recent years, making them a significant slice of the country's overall banking assets. However, since they are individually quite small, they have two disadvantages due to economies of scale. They have fewer funds to invest and fewer legal resources. While the major commercial banks have entire legal divisions, credit unions must navigate a similar regulatory framework with a much smaller team.

Economies of scope

While the economies of scale often work against credit unions, economies of scope work in their favor. Since they are typically based in smaller communities, they can tailor their products more specifically to local needs. This keeps millions of members banking at these institutions.