According to experts in the psychology field, the five stages of grief can be defined as denial, anger, bargaining, depression and acceptance. One could call the massive shift we’ve been experiencing as a result of the coronavirus pandemic – the loss of our carefree days of travel and packed group gatherings – something that’s certainly worthy of the grieving process. And in recent weeks, it’s become obvious that America needs help moving past the “denial” stage, with people selfishly engaging in risky activities, from refusing to wear masks to crowding into bars, despite the clear-as-day dangers they pose.
Back in March and April, we were mostly in the mindset of, “OK, let’s hunker down and get through this. Then we can get back to normal.” But when COVID-19 cases began surging uncontrollably across the sunbelt this summer, the realization came to light that what we consider “normal” no longer exists. Businesses that rely on in-person interactions to operate are shuttering or changing their operation models. If the pandemic continues into 2021 or longer, that corner restaurant, bar or beauty salon you once loved may either not be there or will look very different, meaning it will no longer be possible to experience it as you did in “normal” times.
Stuff like that is really, really hard to accept. As someone whose personal fulfillment over these past few years centered around traveling and meeting up with people across the country, this time period has been a struggle. The new suitcase I purchased in February is still sitting pathetically in the corner of my bedroom. Part of me still believes that soon I’ll be strolling through an airport sans mask and having a pre-flight drink at the bar, even though I know air travel will likely never be the same again.
So, to those who have been posting pictures of themselves hugging all their friends, standing with groups of coworkers without masks, sitting on airplanes and going about their lives as if this virus doesn’t exist, I (sort of) get it. A change this big is scary and devastating, and it is much easier to pretend it’s not happening. But in this case, staying in the denial stage is dangerous, not just from a health standpoint but a financial sustainability standpoint.
Credit unions won’t have to undergo changes as dramatic as a restaurant moving to a takeout/delivery only model, for example, but they will still need to adjust in a number of ways – by rethinking the branch lobby, allowing for long-term remote work and expanding digital services, to name a few.
A July 6 email from Filene Research Institute, which contained an invitation to a webinar that corresponded with a new research report on the impacts and implications of the coronavirus crisis on credit unions, acknowledged the reality of what’s happening with this opening sentence: “Our daily news is showing that this pandemic is far from over.” This attitude of acceptance is what this industry needs if it wants to succeed in the years to come, not the attitude of denial that goes along with behaviors such as insisting branch lobbies remain open and ignoring social distancing polices among staff.
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.
Gerothanas made a similar point, adding that the effort credit unions put in to improve members’ financial well-being is also critical to the institution’s well-being. “Our industry and credit union is focused on the well-being of members, because if they’re not successful in the long-term, it will be difficult for us to be,” she noted.
The year 2020 has been hard, and we could all probably benefit from some therapy as we navigate this head-spinning period in history. But at this point, it’s time for everyone to accept that change is here to stay and plan to move forward accordingly.
Natasha Chilingerian is executive editor for CU Times. She can be reached at nchilingerian@cutimes.com.
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July 17, 2020 at 08:00PM
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It’s Time to Let Go and Move Past Stage One (Denial) - Credit Union Times
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