The Great Recession was a time of reckoning for the big banks that played a significant role in causing it and the resulting recession. While organizations like DEXSTA were not created in reaction to the historic failure, it did emphasize their value as an alternative financial institution. FCUs provide member-run, accessible credit and financial services to communities, even during economic hardship. Learn why local credit unions like DEXSTA are stabler and safer places to keep your money.  

The Risk With Big 

Ultimately, big banks are subject to failure because they take big risks. Should there be an economic downturn, their dicey lending practices, speculative investments, and lack of foresight create a perfect storm of instability that blows back on their members because their internal structure is designed to be beholden to shareholders. Ultimately, their priority is making trades that benefit those shareholders. Rather than using capital to support small businesses, they invest in large corporate and commercial projects because they can guarantee high-yield profits—until they can’t.

How Local Credit Unions Are Different by Design

It’s rare for a federal credit union to become insolvent because its infrastructure and leadership are designed very differently from big banks. Because local credit unions like DEXSTA are member-owned, not-for-profit institutions, they can make decisions that benefit their members. As a whole, the credit union difference is three-fold: conservative investments, positive local contributions, and better economic management. 

Conservative Investment Options 

Credit unions are not taxed like big banks. That said, the power rests in the hands of the members rather than shareholders, so there’s no need to maximize profits by making risky investments. Instead, they choose highly conservative investment options that regulatory agencies deem safe and focus on strategies to help their account holders. For example, DEXSTA offers better interest rates, fewer fees, and flexible loan terms. 

Positive Local Impacts

Additionally, FCUs strengthen the local economy by giving back to their communities. At DEXSTA, we extend our community-based focus by hosting local giveaway events, supporting charities, and offering perks like free financial literacy courses.

Weather Economic Storms 

FCUs are intentionally engineered to be inherently safer and better equipped to endure economic volatility. If history has taught us anything, it’s that big banks are not too big to fail, and credit unions typically are too small to fall. 

Safeguard Your Money With DEXTSA’S Credit Unions

If you want a financial institution that prioritizes your financial security during these uncertain times, consider applying for credit union membership at DEXSTA. We back up our people-helping-people philosophy with checking, savings, and loan accounts that empower your financial future!