Will the COVID-19 pandemic be transformative for credit unions?

The coronavirus (COVID-19) pandemic has wreaked havoc on our daily lives and devastated the U.S. economy in a very short amount of time. However, we do see a light at the end of the tunnel. Unlike the Great Recession of 2008-2009 when the mortgage crisis was responsible for the economic downturn, there are no underlying financial reasons that would prevent a full economic recovery when the virus subsides. Still, life and business, as we know it, will be different.

When we all eventually re-emerge from isolation, here are three ways credit unions could be reshaped from this pandemic.

Increased Compassion

Normally, card issuers and loan department officers monitor 30-, 60- and 90-day payment reports, and take action on late payments accordingly. Now, with a record number of out-of-work credit union members and the national unemployment rate skyrocketing, the sheer volume of card and loan accounts appearing on past due reports are guaranteed to balloon.

 

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