A doctoral research finding could boost CU lobbying efforts as well as the overall economy.
By David Tuyo II, CIMA, CCE, CUDE, CLE, AIF, AIS, MBA, DBA
The title of my doctoral project, “The Yin and Yang of the Financial Services Industry,” was intentional as the project contrasted different types of performance variation, the contributing variables and the charter type of the financial institution. The work for my doctorate of business administration from California Southern University, which I finished over the summer, showed that the performance of credit unions and banks is correlated with different parts of the economic cycle, and complement one another. During downturns, banks become more conservative. That is, the interests of their customers, who may be struggling financially, come into direct conflict with the interests of their shareholders, who demand that the bank reduce its risk profile in the short term. Credit unions, in contrast, operate more strategically and are more likely to work with members to grant as well as work out loans in tough times. The general feedback from industry leaders interviewed during research displayed a selfless characteristic of credit unions putting the financial health of members and the economy ahead of their own short-term interest. It would make sense to attribute this to the culture of our credit union movement of putting people before profits, the old "not for charity, not for profit, but for service." This is definitely something credit union leaders can start using in lobbying efforts as we hike the hill locally and nationally. The research should encourage policy-makers to balance the market share equation for credit unions, thus reducing economic volatility. I hope there will be a follow-up, quantitative study on the idea that banks and CUs balance each other as the economy changes--and that this future research will provide greater weight in the debate of how to reduce economic variation as deep as the Great Recession and the pre-housing-bubble economy. Earning my DBA has long been a goal, even after graduating from CUES' CEO Institute and earning the (CCE) Certified Chief Executive designation. I believe that becoming a student of your profession ensures the utmost preparation to serve a progressive and innovative financial institution. The learning outcomes of earning my DBA are more than just one research piece. The journey took me through organizational behavior, consumer behavior, economics, leadership theory and practices, governance, strategy and innovation. In today's environment, it's critically important to be an active learner to stay current within a fast-changing industry and hyper-competitive landscape.
David L. Tuyo II, CIMA, CCE, CUDE, CLE, AIF, AIS, MBA, DBA, is EVP/chief financial officer of $534 million Power Financial Credit Union, Pembroke Pines, Fla. Check out all of CUES' upcoming learning opportunities, including CEO Institute.
