It forces the credit unions to be managed professionally and diversify and improve on the services it provides to its members. Credit unions are another tier of financial institutions providing financial services like any other tiers of financial service providers. The products and services depend on how credit unions are structured in each jurisdiction.
Some operate almost like small commercial banks in a competitive environment, while others remain small, concentrating on fewer basic services for its membership. The sustainability of the credit union movement requires that credit unions get into increasingly riskier activities to survive in a highly competitive industry. In these circumstances, formal rigorous supervision will become more critical.