How your credit union can prepare for the coronavirus
The news concerning the possible spread of the novel coronavirus (COVID-19) in the United States can be unsettling. While the full domestic impact remains to be seen, credit unions can take proactive measures by anticipating possible business impacts, calculating potential responses and reviewing emergency preparedness plans.
As the situation unfolds, credit unions may want to analyze and test their possible responses to some of the potential social and market impacts.
Potential Market Impacts:
- Decreased branch and ATM traffic
- Possible interruption or reduction in paychecks for some members (disrupted supply chain/fewer work hours/closings)
- Delayed demand for traditional auto and mortgage loans
- Initial spike and later decline of in-person retail shopping
- Increased online buying and delivery of goods and groceries
- Travel and entertainment sectors might see declines in attendance and spending
- Deposit balances might increase as a net result of the above and stock market volatility
- Federal Reserve intervention – additional liquidity and reductions in the federal funds rate
Additionally, it could be helpful to remind your members about some of the built-in advantages of credit union membership, particularly your payment vehicles.
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