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#47538 - 12/09/02 05:51 PM
Re: Credit Union vs. Banks
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100 Club
Joined: Nov 2002
Posts: 139
CA
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Rules are usually more stringent for Banks than CU's, so if you have a good handle on Banks' rules you'll do just fine with a CU. CU’s are generally a lot smaller than banks, and as such operate a little looser…”Big” Credit Unions have 1 Billion assets… “small” “CU’s can have 100 million or less… All the big Reg's apply. X, Z, CC..etc. The Federal Credit Union Act lays out rules for CU's and the NCUA has oversight. Straw if correct about what kind of charter you have can make a big difference. State and Federal Charters can differ drastically on what CU’s Requirements can be. There are also some big concerns for CU's that you don’t have with banks, like Field of Membership and CUSO's www.cuna.org has some info that you might find handy. Also each state has a Credit Union League that you can call and get really good info/help. Good Luck -Kevin
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#47542 - 12/10/02 04:25 PM
Re: Credit Union vs. Banks
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Platinum Poster
Joined: Oct 2002
Posts: 524
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20% is worth pursuing, but just know that a lot more is happening in the banking world, i.e., compliance/auditing, etc. but CU's have a better track record of taking care of the worker bees, e.g. mergers are not the norm, benefits tend to be better, it's really, really hard to cause a CU to go south (be taken over and closed), etc.
My personal opinion: working with a CU is like joining the Democrat Party, while most banks are run by Republicans. So, if you are already a Democrat you will do well to look at a CU for employment.
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#47547 - 12/10/02 07:24 PM
Re: Credit Union vs. Banks
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Power Poster
Joined: Jul 2001
Posts: 3,708
Las Vegas Nevada
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How can they do everything a bank does, provide services to anyone that walks in the door, not pay taxes and escape CRA?
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#47548 - 12/10/02 07:36 PM
Re: Credit Union vs. Banks
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10K Club
Joined: Sep 2002
Posts: 13,965
TN
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I would assume that's because their clientele is supposed to be segregated in some way - like Ford Credit Union or the Teacher's Credit Unions.
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My Opinions Only
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#47550 - 12/10/02 07:46 PM
Re: Credit Union vs. Banks
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Diamond Poster
Joined: Oct 2000
Posts: 1,191
Springfield
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Grist speaks the truth re: culture shock.
During my last round of post-merger interviewing, I entertained an offer to serve as director of marketing for a local CU. Seems like every product the CEO mentioned, I ended up asking "...and you don't charge a fee for that, either??"
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Opinions are Bartman's, not those of my employer. "A noble spirit embiggens the smallest man."
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#47552 - 12/10/02 07:58 PM
Re: Credit Union vs. Banks
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10K Club
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
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OK, I've stayed out of this as long as I could. I worked for a CU for 3 years prior to coming to work here.
This is my first RANT, so be warned.
They most definitely have a different outlook on how they conduct business. If you are a compliance person, be prepared for a big shock when you go into the CU arena. If I had a dollar for every time I heard "Well, we are doing this in the spirit of the regulation, therefore the NCUA won't site us for the violation." I'd be retired. I never saw the NCUA in the 3 years I worked at this CU.
The people at CUs are great to work with and they definitely believe in customer service, doesn't matter how many regs you bend or violate.
Also, don't make any suggestions that will increase fee income. When you mention charging the "members" a fee for this or that service you become Mr. Scrooge. Give up on thinking how to increase income for the CU. If they do accept an income generating idea, the profits will go back to the members, not the employees, in either reduced loan rates or increased deposit rates. (Kind of defeats the purpose of generating the income.)
I, like others have mentioned, never could buy into their mentality. Also, not only do their BODs not know anything about Banking, probably 85% of the employee base doesn't know any thing about banking. Not their fault though, they've never been taught anything different.
I came back to the bank basically for the same reason you're considering going to the CU. My benefits at the Bank are better and I also came at a 20% increase in pay.
CUs are not bad, they just do things differently and after being in banking for a number of years it will be hard to adjust your thinking.
Why did I go to a CU. Went through a downsizing in 97. Were no local bank jobs at the time. Why did I leave, money and to get back into the real world.
End of rant and my apologies to the CU participants here on BOL that may have taken offense. None was intended.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#47558 - 12/10/02 09:30 PM
Re: Credit Union vs. Banks
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Diamond Poster
Joined: Jul 2002
Posts: 1,722
Oklahoma
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In reply to:
Also, don't make any suggestions that will increase fee income. When you mention charging the "members" a fee for this or that service you become Mr. Scrooge. Give up on thinking how to increase income for the CU. If they do accept an income generating idea, the profits will go back to the members, not the employees, in either reduced loan rates or increased deposit rates.
I have an Uncle that is the President of a credit union in my same state and when our bank began searching for ideas for increasing non-interest income, I struck up a conversation with him about overdraft protection programs and offering debit cards (this was some time back), and I tell you what, he nearly fainted at the thought! "Overdraft protection was just a scheme created by banks to rob their customers of more money and debit cards were a necessary evil but we would never charge a customer a monthly fee for the convenience or for a one time setup fee." Needless to say I don't broach the Banking/CU relationship with him anymore. I was surprised at the reaction, but then again, he has been a Credit Union employee for a long time...raised in that environment. I too am not here to dissuade anyone's opinion on employment decisions, these are my pent up aggressions talking and they have been pent up for many years. Credit Unions probably have better consumer customer service than any bank that I have worked for, but thats about the best I can do.
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