Three Trends That are Here to Stay Because of COVID-19
by Paolo Teotino
The world, as we knew it has been completely redefined by COVID-19, which, in such a short time, has had a remarkable impact on our lives and the way we do business. It is impossible to estimate the long-term implications of this pandemic, but it is realistic to expect that they will be significant and long-lasting.
Amidst changing behaviors and needs, credit unions are changing how they interact with members. As we look to the future of the industry as a result of this experience, three trends have emerged:
1. Delivering new ways to engage members. With the state of the pandemic, members are less able to engage with their credit unions via the traditional channel of the physical branches. Consequently, organizations are shifting their engagement strategy and using alternative ways to interact with members, such as:
- Boosting and reorganizing call centers to adapt to higher member call volumes.
- Having members to come to a branch for vital banking needs by appointment only.
- Leveraging data-driven insights to digitally engage members, particularly members who may not be familiar with these innovative channels.
2. Focusing on economic mitigation strategies. With the expected negative impact on the U.S. and global economies, many credit union leaders are focusing on mitigation strategies to minimize the effect of a possible recession and adjust to the “new normal.” According to a recent article by McKinsey & Company, organizations need to be able to navigate the crisis today but develop strategies to adapt to tomorrow with the following approaches:
- Resolve – Address immediate challenges to your employees, member, and partners
- Resilience – Manage near-term cash issues that members might have
- Return – Create a plan to help scale the business
- Reimagination – Look at what the “new normal” may be and reinvent as economics evolve
- Reform – Be clear on how regulatory and competitive environments may shift
3. Leveraging analytics to understand member behavior. While there are a lot of unknowns at the moment, credit unions can look to their data to help uncover some answers and solutions. Most recently, the Credit Union of Colorado was able to strategically use its member data to discover and detect changes in member behavior, such as:
- Understand online banking vs. branch interactions
- Identify delinquent members
- See fluctuations in deposit accounts
Identifying and targeting critical members in financial distress can represent an essential tool that can help credit unions continue to carry out their missions and appropriately serve their members.
To hear how the Credit Union of Colorado applied a robust data strategy and framework in understanding a shift in their members’ behavior due to COVID-19 sign up for an upcoming webinar on How Data is Driving Consumer Behavior on Tuesday, April 7th.