USAA is focused more on quarterly profits than long-term strength

Compliance issues caused USAA to completely pivot away from what made them great and focus on complying with laws and regulations. That was the beginning of the "end."

Then Wayne took over and hired McKinsey consultants, who have essentially been the ones running the show ever since. McKinsey says "layoff" and Wayne says "how many?" McKinsey says "cut benefits" and Wayne says "all of them or just a few?"

Add on top of that the non military-affiliated EMG who have been hired in the last 5 years and you have a once-strong private company being run like a sh---y publicly-traded company focused more on quarterly profits than long-term strength.

@agz+1tstQ7Ug makes an excellent point.

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Wayne has been hiring consultants, reducing headcount, and outsourcing for over 20 years now. For many of those years it was transparent to customer-facing employees. Some of these decisions paid off for the business, but somewhere USAA lost sight of the Crown Jewels. Unhappy employees do not deliver world class service.

@1aix+1ttCCntT
"What use is that big bank experience?"
Interesting you should ask...

Perhaps the real question ought to be "What use is that big(ish) bank?"

It seems like all it does is lose money (relative to opportunity cost of capital, if not nominally), take our eye off the ball, and impose extra regulatory and compliance overhead on the insurance business that none of our competitors have to deal with. And that extra overhead of being owned by a bank holding company makes it that much for the insurance side of the house to ever really reach the perpetually unattainable goal of finally achieving a competitive efficiency ratio.

The bank is an anchor pulling the ship down. Not to mention, if we're being honest NFCU does it better and the members who are paying attention know it.

Those darn regulations! All they did was highlight all the secret ways we were giving it to our members. Why couldn’t the OCC let us continue ignoring active duty members? Why do we have to do anything when members report fraudulent transactions? If our members want to launder money they earned the right to do so! Why is that something that needs fixing?

All of these non military leaders with industry experience need to take a hike. What use is that big bank experience? I want that retired grunt who is brand new to corporate life so I feel validated.

Thread regarding USAA layoffs

USAA is focused more on quarterly profits than long-term strength

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