LAS VEGAS (4/3/15)--At a recent credit union executive roundtable, Eric Estes, president/CEO, Boulder Dam CU, Boulder City, Nev., said that because credit unions maintained sound lending practices before and after the recession, it can capitalize on the mistrust millennials have in the banks that caused the financial crisis.
"A lot of the millennials have learned not to trust financial institutions, especially on a large scale, after what we've been through," Estes said (Nevada Business Magazine April 1). "That mistrust that exists doesn't necessarily exist for us. A great deal of the people in our community have learned to trust us because we have survived and we have done right by our members."
The roundtable, convened and moderated by Nevada Business Magazine at a branch of Clark County CU, Las Vegas, is part of a series of monthly discussions held by the publication to bring industry leaders together to discuss trends and challenges.
In addition to how credit unions have fared since the recession, discussion topics included how credit unions are different from banks, whether credit unions are more "collaborative or competitive" and plans for the industry.
Regarding the regulatory burden on credit unions, Wayne Tew, president/CEO, Clark County CU, talked about how the Dodd-Frank Act and Consumer Financial Protection Bureau regulations make it difficult for credit unions to stay in business, which can lead to unhealthy consolidation.
"If we continue to merge and press, and have less and less competition with any kind of business, including the banking business, then the advantage to the consumer to choose and have options goes away," Tew said.
Added Estes: "The regulations were brought in to deal with primarily large institution issues. But the regulatory reaction is being applied across the board down to the smallest of the industry who don't have the resources nor the ability to deal with the costs."