The Coronavirus (COVID-19) has sparked economic fears as the outbreak hits the U.S. It’s an uncertain time for both credit unions and members as the threat of an economic slowdown looms.
Among financial institutions, Credit Unions have the opportunity to shine in times of distress when they demonstrate their caring commitment to the financial health of their members. As concerns mount around health, well-being, and financial stability, these are just a few ways Credit Unions can use data analytics to offer support:
- More vulnerable members can be offered “skip a pay” to conserve funds and boost confidence.
- Members with downward trends in income can be offered hardship assistance, particularly in industry sectors already being affected like travel and tourism.
- CUs can identify members that are experiencing increased healthcare costs and offer 0% promotional rates for medical and prescription transactions on credit cards.
- Credit unions can proactively offer loan refinancing to members with high debt repayment and lower deposits.
- Remind members to use online banking services minimizing their need to physically step into a branch for basic transactions.
Challenging circumstances can remind us that mission-driven member service is always a win-win. Not too long ago, a CU Rise credit union client Our Community CU, saw the biggest employers in one of their communities go bankrupt.The credit union responded with town halls and member group meetings to show they’d help the community recover, offering hardship assistance, bridge loans, and financial literacy education. The credit union provided truly needed services, and was rewarded with increased growth, loyalty, and reputation.
We urge you to take care of yourselves and stay well.