The coronavirus pandemic has put the whole world through a lot of stress and uncertainty. One of the biggest stresses that people have faced has been financial stress. This has come from job losses, furlough with reduced pay and many two income households have been stripped down to one salary. These different situations as well as the many more that people have been experiencing, are all a cause for financial stress and people have rightly turned to their financial providers for help.
We have personally seen some of the great work done by financial institutions. In particular, credit unions across the country that have been offering additional financial support to their members and are continuing to do so over the coming months.
What have they been doing?
Just like banks, credit unions have been deferring loan and mortgage repayments. For example, our customer Glasgow Credit Union, deferred loan payments for over 1000 of their members helping them not to struggle to make repayments. Reducing rates on their secured loans is another thing that has helped their members. This is something that has been and will be a huge help to those who have needed to borrow to get them through the coming months of financial hardship.
Glasgow Credit Union also launched a mobile app to their members which allows them to access and manage their money even when in the midst of a pandemic. Operating digitally has become more important than ever and mobile and web apps are so useful and have been a huge help with some branches having to close for a few months. With access to physical locations limited, offering this technology to members is reassuring to them and helps them access funds when they need it most. Read even more about what GlasgowCredit Union have been doing here - https://www.glasgowcu.com/covid19/
As well as financial help, other organisations have been focusing on helping with emotional support as well as financial. For example, Wolverhampton City Credit Union has provided emotional support to their members by taking every opportunity they can to talk to them. Whether it be over the phone or in the branch, the credit union took the time to talk to their members to make sure they were coping. For some, it was the only human interaction they would get all day so the staff were really providing much needed support.
Lockdown has taken its toll on many people and the lack of contact with others can have a big effect on mental health. Serve and Protect Credit Union stepped up in this area by launching a “wellbeing call service’ were members were encouraged to talk about how they were feeling during lockdown. This type of service allows people to chat things through or even access some advice on how to deal with their personal or financial situations. For those who are isolated, this kind of help is vital.
Bradford Credit Union also took some steps and set out to help with the shortfall created by reductions in furlough. Bradford Council worked in partnership with Bradford Credit Union to launch the new ‘Covid Loan &Save Account’ that means anyone on furlough, part of the self employment income support scheme or has lost their job can apply for a support. This has been a much needed lifeline in the community and one that shows how much community organisations like credit unions are doing for their members.
Credit unions are doing a lot for their communities and it is clear that they intend to continue to helping the most financially vulnerable as they have always done. One thing this pandemic has done for the credit union community is highlighting the great work that they do and their affordable loan products. For a lot of people, there has never been more of a need for affordable credit and credit unions are providing that important access that so many need.
We are glad to have seen credit unions rise up and help their communities in their time of need. It enforces their community spirit and we're proud to be supporting them through their digital transformation journeys.
