LOS ANGELES–Forty-three years after walking into his first credit union—after managing a restaurant–John T. Dea, president/CEO of Los Angeles Federal Credit Union, has announced his retirement plans.
Dea, who has been with LAFCU for 25 years and who has spent 43 years in credit unions, said he will be retiring in February 2018.
During Dea's tenure at LAFCU, the credit union tripled in size to almost $1 billion in assets and is one of the largest and best-capitalized credit unions open to all Southern California residents.
Below, Dea shares the lessons he has learned during his career as part of this CUToday.info Exit Interview:
CUToday.info: How did you come to be involved in credit unions?
Dea: My first career was in restaurant management. When the restaurant chain I worked for was sold, I searched for other job opportunities. I walked into FAA Western FCU (now SkyOne FCU) not even knowing what kind of business it was. They gave me a chance and believed that my restaurant skills in managing people and dealing with cash balancing would translate to credit unions. In those days only cash or checks were used for payment. FAA Western gave me an opportunity and it has been a great 43-year credit union career.
CUToday.info: What have you learned about driving and managing growth during your career?
Dea: You drive growth with great products, great staff and great marketing. At LAFCU we have all three. Our industry is blessed with great products and structure. To manage the growth I believe you must diversify appropriately to reduce your risk and communicate effectively to your staff, members, volunteers and potential members.
CUToday.info: What have you learned about managing people, and how has that changed, during your career?
Dea: People want honest, open and frequent communication. At LAFCU, we are very open and transparent and discuss how we are doing and what we are planning in detail every month to all staff. Technology has changed some methods of communicating, but the core basics are still the same.
CUToday.info: If you could go back and talk to yourself on your first day as CEO (or in management), what advice do you share?
Dea: Be ready for change. Every day brings a new challenge and a new opportunity. Get advice and information from everyone you can and don’t act before you have an opportunity to think things through. You are only as good as the people around you.
CUToday.info: What is your view on the future of credit unions, if there is to be one?
Dea: Credit unions have great opportunities to grow and prosper, but things have changed and will continue to change very rapidly and we must do the same. We need to partner with each other and with fintech-type businesses to continue to adapt to the needs of younger members. Internet, mobile and new home assistants all are important channels. Speed and search optimization are also critical.
Many younger people don’t think they need financial institutions as much as they want a place to park their money and quickly move it as needed. The near-zero interest rate environment today has made them less interested about savings rates. Indirect lending is also critical, as members search online for the best lending rates. I think the phrase “adapt or die” is more relevant than ever.