In the webinar, Filene EVP and Chief Research and Development Officer George Hofheimer presented some valuable observations and tips for credit unions that are ready to embrace the acceptance phase of this crisis:

Many of the financial struggles we're witnessing did not appear with the crisis; they were already beginning to bubble to the surface. "Today's crisis only amplifies the fact that people are stymied by financial instability in their everyday lives," Hofheimer said. Communities that were already vulnerable, such as minorities and young people struggling to pay off student loans, are more likely to experience long-term damage to their financial well-being. To that point, Hofheimer recommended that credit unions stay closely tuned into the life transitions members are likely to make as a result of the crisis, which include job and career changes, and divorces.
Credit unions need to reach out to members who need financial help more proactively. Hofheimer said credit unions have been doing a great job of offering member relief such as fee waivers and forbearance, but many of them ended their messaging about the programs by asking members who are interested to give them a call. Instead, the credit union should be calling members most likely to need the services, eliminating the number of steps the member needs to take to get the help they need. Creativity can go a long way here – he said one credit union, for example, is completing an analysis of ACH transactions to determine which members are on unemployment and reaching out to them to offer help.
Because we can expect to be in a low interest rate environment for a long time, credit unions can expect to see tight net interest margins and lower fee income, Hofheimer said. One way credit unions can mitigate these challenges is to reduce expenses by letting go of properties they own or lease, and embracing remote work and digital member interactions. He noted some credit unions have in fact been questioning the value of brick-and-mortar branches.

At the end of the webinar, Hofheimer asked the two guest speakers – David Demsko, SVP of corporate strategy and business performance management for CO-OP Financial Services, and Rebecca Gerothanas, COO for Summit Credit Union ($3.8 billion, Cottage Grove, Wis.) – to reveal the one thing they'd advise credit unions to do right now. Demsko said given the difficult circumstances many people are in, it's important to avoid being impersonal. "You can treat it like business, or like a relationship. Anything you can do that will resonate well [with members] will serve credit unions in the long haul," he said.

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It's Time to Let Go and Move Past Stage One (Denial)

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