How your credit union can prepare for the coronavirus

first_img continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr The news concerning the possible spread of the novel coronavirus (COVID-19) in the United States can be unsettling. While the full domestic impact remains to be seen, credit unions can take proactive measures by anticipating possible business impacts, calculating potential responses and reviewing emergency preparedness plans.As the situation unfolds, credit unions may want to analyze and test their possible responses to some of the potential social and market impacts.Potential Market Impacts:Decreased branch and ATM trafficPossible interruption or reduction in paychecks for some members (disrupted supply chain/fewer work hours/closings)Delayed demand for traditional auto and mortgage loansInitial spike and later decline of in-person retail shoppingIncreased online buying and delivery of goods and groceriesTravel and entertainment sectors might see declines in attendance and spendingDeposit balances might increase as a net result of the above and stock market volatilityFederal Reserve intervention – additional liquidity and reductions in the federal funds rateAdditionally, it could be helpful to remind your members about some of the built-in advantages of credit union membership, particularly your payment vehicles.last_img

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