Enhancing Your Member Experience in Stressful Situations · 2020. 8. 17. · qReview FICO...

Enhancing Your Member Experience in Stressful SituationsMarch 24, 2020Katie Kean

Michelle HillenbrandKari Anne Arnosk

2 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.

DisclaimerInformation as of March 24, 2020

Though we are familiar with regulations, acts and practices, the suggested recommendations we provide do not constitute legal advice and should not be acted upon without specific counsel from your credit union’s legal representation.


Today’s Topics§Market Conditions

§Financial Services Industry Updates

§Credit Union Focus – Credit, Debit & Checking•Key Areas to Assist Members

§ Settings & Tools to Assist Members and Employees

§ Eye on Portfolio Quality & Areas of Impact

§ Risk Tolerance With A Changing Environment

•Overall Communication

§Marketing Services Updates

§Additional Resources


Market Conditions


Market ConditionsHeadline News…as of 3/23/2020


Market ConditionsMore than 24.2 million Americans (7.3%) work in the five high-risk sectors facing a sharp economic slowdown

https://www.brookings.edu/blog/the-avenue/2020/03/17/the-places-a-covid-19-recession-will-likely-hit-hardest/




Market ConditionsUnemployment claims rise 33% in one week, the highest increase since 1992

Source: Labor Department as of March 20, 2020

211,000

281,000

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Week ending March 7 Week ending March 14

Unemployment Job Claims (#)

Weekly Average

• Week ending March 7: Historic low for number of claims

• Week ending March 14: Highest level of claims since Hurricane Harvey (9/2/17)

• Data excludes independent contractors such as Uber and Lyft drivers; as well as actors, tour guides, etc. who are not eligible to submit claims.


Market ConditionsTreasury Secretary Mnuchin forecasts “20% of the population will be unemployed (66.2 million) if stimulus package is not passed”

S.3548 CARES Act (Coronavirus Aid, Relief and Economic Security Act)Introduced: 3/19/2020

IndividualRebates

Rebates of $1,200 for most individuals who reported less than $75,000 on their 2018 tax returns.

Joint Filings $2,400 per couple who made less than $150,000

Dependentchildren

$500 added for every dependent child

Low-income Americans

Americans with at least $2,500 of qualified income, but who do not earn enough to pay income tax, get a smaller benefit of $600, or $1,200 for couples.

https://www.congress.gov/bill/116th-congress/senate-bill/3548/text?r=1&s=1#toc-idC62A2A4676F44E44B6A0D677C490FD17

https://www.congress.gov/bill/116th-congress/senate-bill/3548/text%3Fr=1&s=1

https://www.congress.gov/bill/116th-congress/senate-bill/3548/text?r=1&s=1#toc-idC62A2A4676F44E44B6A0D677C490FD17


Market ConditionsU.S. Treasury and IRS postpone Federal Income Tax filings April 15 to July 15

Tax Day Extension applies to Federal Income Tax Filings only

• All taxpayers and businesses will have this time to file and make payments without interest or penalties

• Individuals can delay taxes up to $1 million and corporations up to $10 million

• It is estimated this will free up $300 billion in extra liquidity over this period.

https://home.treasury.gov/news/press-releases/treasury-and-irs-delay-federal-tax-day-from-april-15-to-july-15-due-to-covid-19-outbreak




Market Conditions Social Distancing: What Can We Do To Help our Members and Credit Unions

Level set early read on Social Distancing member activity

Online spend

Mobile & Contactless spend

Gas & Grocery spend

Drive-through services

Medical supplies

Airline Travel; Border closures

FI Branch lobby closures; Drive thru only access

Dining closed to carryout or drive-through

Gyms, fitness centers and Church closures

Nonessential medical cancellations

Any gatherings > 10 people

Soci

al D

ista

ncin

g:

Incr

ease

d Ac

tivity

Social Distancing: Decreased Activity


Market Conditions Spend activity and needs will vary by geographical area and time

Stay at Home Mandates

Source: Bloomberg.com (3/23/20 @ 1pm)

California 3/19/2020Pennsylvania 3/19/2020

Nevada 3/19/2020New Jersey 3/21/2020

Illinois 3/22/2020New York 3/22/2020Louisiana 3/23/2020

Connecticut 3/23/2020Kentucky 3/23/2020

Ohio 3/23/2020Delaware 3/24/2020Michigan 3/24/2020

Massachusetts 3/24/2020Indiana 3/24/2020


Financial Services Industry Updates


Financial Services Industry UpdatesConsumer mindset amid pandemic

Source: American Banker (3/20/2020)

49%are less likely to take a loan from a financial institution if it requires going to a physical branch.

35% Only 35% proactively reached out with offers to ease payments temporarily.

Consumers:

Financial Institutions:


Financial Services Industry UpdatesEXAMPLE: Credit Unions proactively reaching out

Twitter.com


Key Areas to Assist Members


Key Areas to Assist MembersProviding Comfort, Security and the Tools Members Need

EaseDigital PlatformOnline BankingMobile Wallet

Contactless

SafetyFraud Tools

Alerts/ControlsCard Lock

Review Dormant Accounts

AssistanceLayered Communication

Web/Mobile Ticker/Banners

PSCU Resource/ContactsReview or softening of

Settings/Controls


Poll: Areas of Concern for MembersWhat has been the largest area of concern for your members?

Access to funds

Reassurance of the safety from fraud

1

2

Assistance to help them meet financial obligations

Overall communication needs

3

4


Key Areas to Assist MembersWhen it comes to helping your members through stressful situations, the following are four key areas of focus for credit unions to consider:

Help Members Meet Their Obligations

Flexibility in Account Access

Education and Engagement in Digital Services

Steady Stream of Member

Communication


Key Areas to Assist MembersHelp Members Meet Their Obligations

Providing flexibility when its needed most

q Skip-a-Pay & Payment Deferrals – seeing up to 90-day deferrals in retail banking

q Late fee waivers (up to 90 days)q Offer low rate emergency hardship loansq Similar to skip-a-pay, use delinquency (hold) status & potential to re-age q Minimum payment updatesq Credit Line increases (available balance increase) – on demand to manage

volume on staff resourcesq Balance Transfer options – rate & term softeningq Increase daily authorization limits

Considerations of Settings & Tools to Optimize for Pandemic Assistance Plans


Key Areas to Assist MembersWhat to expect with quality change…ensure to manage portfolio quality

View holistically; don’t lose sight of granular details that are big impacts

q Review FICO Tiers/pricing and ensure aligns with risk toleranceq Review new credit line assignments as FICO score/ability to pay may not be

100% accurateq Expect increases in unemploymentq Expect Net Interest Margin impacts with 150bp emergency rate reductionq Be sure to submit changes to index rates and disclosuresq Listen to your members and employees q Have Pandemic team to stay on top of ever changing environment and

areas of impact not only for the credit union, members and employees but also specific to products and regulatory changes/mandates, etc.


Key Areas to Assist MembersHelp Members Meet Their Obligations: Safeguarding Members & the CU

Be sure to understand risk tolerances for the Credit Union & Card Portfolio

q Understand that modelling is impacted when data drivers changeq Review fraud tools availableq Review dormant accounts for movementq Warn members (and employees) of increased phishing and fraudulent activity q Review FICO tiers in underwriting under a new risk environmentq Expect unemployment increases – FICO scores and ability to pay is stale dated

as businesses and consumers impacted with mandatesq Net Interest Margin impacts with 150 basis point emergency reductionq Ensure collections workout programs and tools are communicated to staffq Be sure to communicate PSCU resources to membersq Don’t lose sight of small business concerns and increased loss oddsq Review Reports available and PCF settings to tighten where needed/soften

where comfortable (Cash Advance and BT line allowance)


Key Areas to Assist MembersDeposit Account Access and Fees – ensure flexibility

Temporary Increases: ATM, Debit Card, P2P, Mobile• Increase ATM daily transaction limits and ensure

ATMs are well stocked with cash• Increase Debit Card spend limits to available

balance• Increase P2P transfer amounts (if your CU deploys

a third party vendor solution)• Increase daily mobile deposit limits

Temporary ATM Fee Waivers/Reversals: ATM fees charged by your credit union and third party surcharge fees

OD/NSF and Courtesy Pay: Reverse or waive fees, lower fees, give members a longer extension timeframe (e.g., 7 days) before assessing fees.

Deposit Account Fee Waivers: (Checking, CD’s, etc.): • Waive monthly maintenance fees on all deposit

accounts• Waive all fees stated on your fee schedule• Waive certificate (time deposit) early withdrawal

penalties to help members free up liquidity

Other Fee Waivers or Reversals• Offer domestic and international wire transfers

with no processing fee• Cash advances on your credit card with no fee


Key Areas to Assist MembersHelp members & employees through aligned communication strategies

Providing multi-layered approach to communication

q Refresh IVR and auto-dialer optionsq Add wait time acknowledgement and alternate options to communicateq Call back assistant to reduce wait times and manage volumeq Update on-hold talk track q Mirror online messaging through all channels, including mobileq Check messaging/talk track for all inbound/outbound employees q Virtual assistants and chat feature coverageq FAQ sheet online as well as with employeesq Use reporting available within Member Insight to identify service needs-

proactive measures on fraud/risk trendsq Create overall cadence of communication to members and employees

Communication Channel Optimization for Pandemic Assistance Plans


Key Areas to Assist MembersEducation and Engagement in Digital Banking / Mobile Payments

§ Ensuring member education and engagement with your digital banking services (online and mobile) is extremely important.

§ Deliver promotion and education of digital wallets and contactless payments.

§ Consider online videos teaching members how to enroll in mobile wallets and use contactless payments.

Twitter.com


Dedicated COVID-19 Website Page

• Ensure it’s easily accessible from your home page and other digital media sources.

• Include steps being taken with your credit union and continuously update as the situation evolves.

Key Areas to Assist MembersSteady Stream of Member Communications

Keep members informed leveraging an omnichannel approach

Website, Social Media, Test Messaging, Push Notifications, Contact Center


Key Areas to Assist MembersExample: Steady Stream of Member Communications


Key Areas to Assist MembersSteady Stream of Member Communications

Safety and Security messaging: Helpful tips for your credit union members

Watch Out for Phishing Emails: Never click on an embedded link in an unsolicited email. It may download malware onto your computer. Be suspicious of emails claiming to be from the CDC or “experts” saying they have new critical information about the virus.

Be wary of “investment opportunities” related to the coronavirus. The U.S. Securities and Exchange Commission (SEC) is warning people about online promotions claiming products or services of publicly-traded companies can prevent, detect or cure COVID-19.

Source: PSCU Blog by Gene Fredriksen, Security Strategy Consultant

Know Your Charities: Scams often look like they are helping locally or for specific groups you already support. Check with the Better Business Bureau or online sites that track charities such as GuideStar, CharityNavigator or Charity Watch.

Beware of Bogus Product Scams: When an offer is “too good to be true” – verify product credibility. For example, when a random source on the internet promotes an “unlimited supply” of products such as masks, immune system boosters and sanitizers, buyer beware!

If you come across any suspicious claims, report them to the FTC at ftc.gov/complaint

Example


Marketing ServicesSpend and Get Marketing Opportunity E-Messaging Services


Summer Spend and Get Promotion – All CategoriesWhatever you are doing this summer, use your CUF1RST credit card to earn reward!

Promotion is designed to reward your members with up to $25 for using their credit or debit card for summer spending!


Key Dates

§ Enrollment Deadline April 10

§ Postcard Drop May 13

§ Email Reminder early June

§ Promotion Period May 15 – June 30

§ Credit Union Reporting mid-July

§ Rebates Posted before August 25, 2020

2020 Summer – Spend & Get Marketing Campaign

Coming soon… Amazon Prime Month Amazon Spend and Get (July, 2020)


Marketing Collateral – Postcard Template2020 Summer – Spend & Get Marketing Campaign

§ Members will receive a promotional mailer with a unique participation code directions to enroll on registration site. • MyCURebate.com/Summer-2020

§ Cardholders must register their participation code to be eligible to earn the corresponding rebate for completing qualifying purchases.• $10 rebate for $500 in purchases

• $25 rebate for $1,000 or more in purchases

https://www.advisorsplus.com/campaigns/spend-and-get/home




Email Messaging Service

§ Efficient Mass Distribution§ Proactive Communication§ Easy Sign-up§ Template emails§ Customization available§ Pre-schedule email drops

Available for PSCU and non-PSCU processing credit unions


E-Messaging Services

Enrollment FormEmail Templates

https://www.advisorsplus.com/campaigns/content/standard-message-enrollment




Additional Information


Additional InformationCOVID-19 Resources

Agency Website

CDC https://www.cdc.gov/coronavirus/2019-ncov/index.html

NCUA

NAFCU

Treasury Department Treasury.gov/coronavirus

IRS IRS.gov/coronavirus for further information on IRS efforts to assist taxpayers.

https://www.ncua.gov/coronavirus

https://www.nafcu.org/compliance-blog/reserve-requirements-and-regulation-d-covid-19-faqs-availablehttp://www.pscu.com/covid19

https://www.cdc.gov/coronavirus/2019-ncov/index.html

https://home.treasury.gov/coronavirus

http://www.irs.gov/coronavirus


https://www.nafcu.org/compliance-blog/reserve-requirements-and-regulation-d-covid-19-faqs-available

http://www.pscu.com/covid19



https://home.treasury.gov/coronavirus

http://www.irs.gov/coronavirus





http://www.pscu.com/covid19


Additional InformationCOVID-19 Resources: NCUA

NCUA.gov March 22, 2020


Q & A Session

To best assist with this session, Feel free to enter any questions into the chat feature or unmute yourself to speak.

Joining the Panel for the discussion:

§ Kevin Spear, SVP – Service Delivery

§ Jeff Browning, VP – Service Delivery

§ Mary Paras, VP – Service Delivery

§ Melissa Starling, VP – Service Delivery

Participant Discussion With Expanded Resources


Advisors Plus PanelistsContact Information

§ Katie Kean - Principal Consultant, Credit Card

Email – [email protected] 269-744-5265

§ Kari Anne Arnosk - Principal Consultant, Debit & Checking


§ Michelle Hillenbrand - Principal Consultant, Marketing


§ Find us on the Web

Web site: – www.advisorsplus.comTwitter: @PSCUAdvisorsPlus

http://pscu.com

http://pscu.com

http://pscu.com

http://www.advisorsplus.com/

mailto:[email protected]



http://www.advisorsplus.com/

Enhancing Your Member Experience in Stressful Situations · 2020. 8. 17. · qReview FICO...

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