Credit Unions vs Banks - What Is The Difference for Your Commercial Banking Career?

🧑‍🎓Click The Link Below For The ULTIMATE Commercial Banking Interview Prep Guide With Credit Case Studies 👩‍🎓
www.financekid.ca/products/co...
What is the difference between a credit union and a chartered bank? Career-wise, how does working for a bank vs a credit union differ? Credit unions are non-profit organizations, how does that influence the culture and career opportunities for an aspiring banker? What are some of the positives of working for a credit union vs bank? What are some of the downsides to working for a credit union vs bank?
In today's video we answer the above questions and discuss in detail the difference in compensation levels between credit unions and banks, how competitive the lending products of a bank vs credit union are in the commercial banking space and career-wise what are some of the key differences to keep in mind as you are planning your next career move. See below the key chapters discussed:
[0:14] - What is a credit union?
[5:03] - What is a chartered bank?
[6:26] - The positives of working for a big bank
[12:21] - The negatives of working for a big bank
[15:54] - The positives of working for a credit union
[20:33] - The negatives of working for a credit union
[24:48] - Overview of Pros vs Cons for Credit Union vs Bank
If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon!
If you want to reach out via email, you can contact me at;
[e-mail]
If you are looking to sell your business and would like to learn more about Roblee Capital, please reach out to me for an introductory call. You can contact me through email or through my LinkedIn at;
/ robert-bezede-20ab8a6a
Roblee Capital is a Toronto-based M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buy-side M&A services. We work with Canadian-based business owners looking to sell their lower mid-market business. If you are a Canadian business owner looking to sell or buy, please reach out so we can connect at the link below:
www.robleecapital.ca/

[@financekid3163]

For those that have worked at credit unions, can you share your experience below? I would you love to hear what you liked and disliked about the experience. Thanks for sharing!

[@joshcarter7034]

Really learning a lot and enjoying these videos! Appreciate you offering these videos

[@financekid3163]

Thanks for watching!

[@owenzhang-vb7xh]

How about a publicly traded community or regional bank?

[@PeteR90468]

Welcome back to your channel. You must have been busy for the past few months. Hope your business is doing well.

[@financekid3163]

Yes they have been ha! Finally found some time to make videos! Thanks for your patience.

[@TheTruthSeeker756]

Gold

[@tarun4629]

Your videos are really detailed and helpful....I have been trying to break into commercial banking in canada but not able to get through even after touching base with many commercial banking vice president's and fellow Commercial bankers of the big 5.
Please let me know what do I need change to break into commercial banking?

[@financekid3163]

I will be releasing some interview and recruiting guides to the sector in the coming months so stay tuned for those documents, that should help you break in. Keep trying in the meantime! Thanks for watching.

[@RacksonRacksonRibss]

I would add that one downside of large banks (that goes with your point of 'Big Company Culture') is that sometimes there are things totally out of your control can effect on your role.
Example -- Executive management needed to shift the portfolio slightly and decrease the bank's overall exposure in Commercial Real Estate. So they basically made CRE Underwriting verrryyyyy conservative and impossible to get deals through (without directly telling the CRE RM's). So eventually our region's CRE RM and another commercial RM were forced into a demotion and taking back office roles. Something similar also happened to a Middle Market RM that specialized in the 'Healthcare' space. And really it was all because they 'shut the spigots off' on that type of lending/industry entirely.
At the end of the day... EVEN IF YOU COVER WHAT SEEMS LIKE A LARGE PORTFOLIO.. it is a small cog in the scope of a big bank. And that big bank is effectively a massive portfolio. So at times they need to shift the direction of the boat 2mm -- and it could be at the expense of your segment.
With Credit Unions and small to smedium sized banks that have a specific mission, you typically don't get the spigots shut off on you entirely like this (if you have a decent sized portfolio that fits their mission -- ie: a 'farming' credit union isn't just going to stop lending to farmers or derail a good book of business in that sector).

[@financekid3163]

Very good point, the pivoting of large credit books can be challenging if you are heavily focused in a niche. Another example is at my commercial bank, our division had a heavy hospitality book (ie. hotels), COVID came around and the banks stopped lending to this sector entirely, several people had to pivot and find other deals using their networks to meet budget. Something to consider vs smaller credit unions where their target markets are more steady.

[@RacksonRacksonRibss]

@@financekid3163 Exactly. And it seems like noawadays big banks want RM’s to be more specialized within an industry or type of lending.
‘Target markets being more steady’ (for credit unions/small banks) sums it up well.