WINDSOR LOCKS, Conn.–After 26 years leading the organization, Robert L. Aresti, CEO of 360 Federal Credit Union, has announced he will be retiring effective Nov. 30.
In all, Aresti has spent more than 44 years in financial services, 32 of which were spent in credit unions.
Aresti joined what was named Hamilton Standard FCU as president/CEO in 1991, and has overseen growth to $230 million in assets, while also overseeing two name changes, an expanded its field of membership via a community charter, and the introduction of a number of new products and services.
Below, Mr. Aresti shares his thoughts, observations and lessons learned with CUToday.info’s The Corner as part of an “exit interview.” More info on Mr. Aresti’s retirement can be found here.
CUToday.info: How did you come to be involved in credit unions?
Aresti: While working for a local savings bank early in my career I became interested in accounting and started to take college courses at night and during summers to pursue a degree. I really enjoyed the retail side of the business, but wanted to learn and do more on the accounting side. There were no opportunities available to me at the bank and in looking for a new job opportunity I came across an accounting manager’s position at Dutch Point Credit Union in Wethersfield, Conn. I did some research on credit unions and liked what I saw. I applied, got the job, and that was the beginning of 32 years in a great industry!
CUToday.info: During your career you have overseen significant growth and change, including two name changes and FOM changes. What have you learned about driving and managing growth, as well as from the name and FOM changes?
Aresti: A solid growth plan is imperative because growth for growth’s sake is not good. You cannot set goals without considering all the operational and financial aspects. Grow too fast and you may not be able to handle the servicing side or increase net income enough to keep your capital ratio on target. Grow too slowly and your average core assets may not be able to absorb the inevitable increases in operating costs each year. That will diminish your ability to offer new and competitive services.
360FCU was originally a single-sponsor credit union. That sponsor acquired another company. which prompted our first name change to keep us aligned with them. When they later announced that they would continue to diversify, we knew it was time to pick a name that would be relevant in the long run regardless of our charter type.
You need to continually assess your market and determine if it has been saturated or if other and better opportunities exist elsewhere that fit in with your strategic plan. There are charter choices both at the state and federal levels; take the time to study all the pros and cons of each.
CUToday.info: What have you learned during your career about managing people?
Aresti: I don’t think it’s a surprise to anyone that it is the most challenging part of the job. Over the years I’ve learned that a CEO needs to adapt their management style to the individual. In other words, everyone has their own personality, skills and style. What works managing one person won’t work for another. The flexibility needs to come from the CEO side in recognizing that, because just as people learn differently, they need to be managed differently.
Managing people can also be extremely rewarding. For me, the big upside has been the joy and satisfaction of watching individuals achieve success within the credit union and personally; seeing and sharing their excitement. That truly is the best part.
CUToday.info: If you could offer some advice to new CEOs, what advice do you share?
Aresti: Recognize that you are going to constantly be balancing the needs of your members along with those of your staff, board and regulators so you will need to continuously prioritize. You need to be very resilient.
Leading when things are good is certainly easier, but when challenges happen and things get tough, that’s when strong leadership is most critical. You don’t have the luxury to panic like everyone else because it is when you will be counted upon the most; so, don’t dwell on things, keep moving forward.
Also, don’t think for a moment that you can go it alone--build a strong team by surrounding yourself with good people and then listen to them. Treat everyone with respect and dignity. And keep a good sense of humor for everyone’s sake, especially your own.
CUToday.info: What is your view on the future of credit unions, if there is to be one?
Aresti: The enormous strain of regulation is the greatest challenge credit unions face in the future. There is no common sense whatsoever in this political environment and there certainly does not seem to be a clear answer. Primarily because of that, I believe that consolidations will continue to drive the number of credit unions down and the ultimate key to our future is for the larger survivors to not dilute or lose the key philosophies and principles that credit unions were founded upon. Those are what make us the best choice for consumers.