Sabah Kazmi and the Nature of Credit Unions

Sabah Kazmi
On the surface of things, a credit union and a bank seem to have a significant amount in common. Both institutions accept deposits, cash checks and provide loans. But, there are some significant differences between a credit union and a bank. People like Sabah Kazmi are happy to make those distinctions clear. Sabah Kazmi has been working in a credit union since 2008, and learning more about what she does in a credit union and what she might do in a bank can help make the distinction clear.

In her credit union, Sabah Kazmi works as a Risk Analyst. This means she's involved in helping her company avoid unnecessary risk. She must examine the markets, and use her own educational background to determine what the markets might do in the future. It's a technical role, to be sure, but Sabah Kazmi would do the role slightly differently if she worked in a bank. Credit unions are not-for-profit organizations, owned by members. Banks are for-profit institutions, often owned by investors. As a risk analyst for a credit union, Sabah Kazmi thinks about decisions that would be good for the long-term health of the organization. As a risk analyst for a bank, Sabah Kazmi would be thinking about decisions that could result in big payouts for shareholders. She might make very different decisions as a result.

In a credit union, Sabah Kazmi is directly responsible to the organization's members. In other words, the people she serves are also the people who provide her with a job. She keeps customer service in mind at all times, and she tries to keep her credit union members happy. In a bank, Sabah Kazmi would be responsible to shareholders in far-flung locations. This would put a barrier between her and her clients. It's unlikely that Sabah Kazmi would treat her clients any differently in this model, but it would add a layer of bureaucracy.

Credit unions try hard to improve the life of the people they serve. As a result, Sabah Kazmi is often looking for innovative projects her company might choose to invest in. Sometimes, these are small businesses. Sometimes, these are individuals. As a Lending Systems Administrator, she ensures that these people can get the loans they need. If she worked in a bank, she might reject these projects because they weren't profitable enough. Sabah Kazmi would have a different goal to keep in mind.