enhancing your member experience in stressful situations · 2020. 8. 17. · qreview fico...
TRANSCRIPT
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.
3 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
4 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
Market Conditions
5 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
Market ConditionsHeadline News…as of 3/23/2020
6 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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/
7 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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.
8 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
9 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
10 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
11 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
12 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
Financial Services Industry Updates
13 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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:
14 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
Financial Services Industry UpdatesEXAMPLE: Credit Unions proactively reaching out
Twitter.com
15 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
Key Areas to Assist Members
16 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
17 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
18 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
19 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
20 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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.
21 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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)
22 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
23 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
24 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
25 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
26 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
Key Areas to Assist MembersExample: Steady Stream of Member Communications
27 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
28 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
Marketing ServicesSpend and Get Marketing Opportunity E-Messaging Services
29 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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!
30 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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)
31 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
32 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
33 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
E-Messaging Services
Enrollment FormEmail Templates
https://www.advisorsplus.com/campaigns/content/standard-message-enrollment
34 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
Additional Information
35 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
36 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
Additional InformationCOVID-19 Resources: NCUA
NCUA.gov March 22, 2020
37 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
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
38 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.
Advisors Plus PanelistsContact Information
§ Katie Kean - Principal Consultant, Credit Card
Email – [email protected] 269-744-5265
§ Kari Anne Arnosk - Principal Consultant, Debit & Checking
Email – [email protected] 727-299-2439
§ Michelle Hillenbrand - Principal Consultant, Marketing
Email – [email protected] 727-571-4555
§ Find us on the Web
Web site: – www.advisorsplus.comTwitter: @PSCUAdvisorsPlus
39 ǀ 3/25/20 © 2019 PSCU. All rights reserved worldwide. Confidential – do not copy or distribute without permission.