The emergence and development of the coronavirus pandemic have impacted the world in ways that likely won’t ever go away. Credit unions are not immune to the pandemic, but what have they been doing differently since the COVID-19 outbreak started?
Changes for Members
The changes for members go much deeper than just incorporating social distancing and expanding online options to curb the spread of the virus. Many credit unions offered (and continue to offer) things like loan repayment holidays, emergency loan guarantees, credit card interest rate reductions, fee waivers, and extensive financial counseling.
These changes, coupled with targeted government stimulus and unemployment relief has helped ease the financial burden on credit union members. According to a Credit Union Times article, credit unions paid out $9.6 billion in business loans through the Paycheck Protection Program, supporting 51 million jobs.
To slow the spread of the virus, many credit unions also relied on recommending members perform more cashless transactions. Credit and debit card use as well as limiting large cash deposits and withdrawals were also encouraged.
Changes to Credit Union Operations
While deciding how to help members continue their financial journey, credit unions were also navigating the transition from physical business to mostly virtual and digital operations. Many countries deemed credit unions (along with larger national bank chains) as essential, so new protocols were implemented at astonishing rates.
The room and building maximum capacities are being downsized and many CUs had at least part of their labor pool working from home during shutdowns and shelter-in-place orders, which created a need for cybersecurity tips and best practices.
The WFH measures are likely here to stay, and the limited room capacities will be in place for the rest of 2020. Some countries have gotten a handle on their COVID cases, but the US is a long way from being COVID-free. This means in-person meetings and transactions will continue to be lower than average, while online offerings will continue to be a preferred method.
From a technical standpoint, many institutions even made changes to services like commercial underwriting processes. While the COVID-19 pandemic may be a once-in-a-lifetime event, the importance of a strong contingency plan could be a higher priority for lenders considering the merits of a small business loan application.
Though this pandemic is far from over, credit unions have now stopped merely reacting to the crisis and are working diligently to adapt and move forward. Many businesses are taking this time to search for ways to streamline, digitize, and automate certain aspects of everyday operations.
73% of employers, regardless of business size, are now considering keeping work-from-home positions, which means data security and easy online access will become a necessity. Larger businesses may need to make tough decisions concerning mergers and consolidations. For smaller CUs, this is a great time to trim time-consuming practices from employees’ workloads.
Contact us when you’re ready to help take some of the burden off your team so they can focus on growing your credit union during these unprecedented times.