How Credit Unions Can Outlast COVID-19

Updated: Jun 3

The financial landscape is changing—fast—and Pocketnest can help your credit union change with it



Budget and homescreen of Pocketnest financial wellness app


The “Great Shutdown” forced people and businesses into an “unnatural cash crunch”1 .


COVID-19 has taken a financial toll on more than three out of every five adults in the U.S.2,3 In fact, 45 percent of people are struggling to make their rent or mortgage payments,4 23 percent say they have or will soon miss a bill payment5, 56 percent of people are concerned they will not be able to feed themselves and their families6,7, and more than a 25 percent say that they have stopped or decreased retirement savings8,9,10.


In April 2020, the U.S. personal savings rate reached 33 percent, up from 12.7 percent in March, according to the U.S. Bureau of Economics1. As Americans saved one third of their take-home pay in April—the most they have ever saved in history—financial institutions are quickly realizing that personal finance and money management are changing. Financial institutions, especially credit unions, must change with the tide.


Along with other financial and wealth management industries, credit unions are beginning to expand their reach to a younger audience. According to a recent Northwest Mutual study, 19 percent of Generation Xers and 22 percent of millennials did not have an advisor before the COVID-19 pandemic, though now seek to find the advice of one11,12. The report also found 15 percent of adults over the age of 18 have developed a financial plan since the onset of the pandemic11,12.


As credit unions continue to navigate their role in supporting their employees, members and communities, the immediate next step is to provide branch safety and security; however, the longer-term solution requires an innovative approach to serving members that relies more on technology than physical presence; and, places the highest priority on customization and individual financial well-being13.


The financial landscape is changing—even faster with the new threats COVID-19 has brought—and Pocketnest can help credit unions change with it.


Pocketnest, the holistic financial wellness app, was created with credit unions in mind. Pocketnest uses behavioral psychology and science to bring people approachable and user-friendly guidance to create and stick to a financial plan—white-labeled to be in their credit union’s brand. Meanwhile, the app brings credit unions priceless member data helping them to increase lead generation and cross-selling opportunities, while giving their members a better, more innovative experience with their brand. Pocketnest also helps credit unions, and other financial institutions, support their local communities by promoting financial education and wellness.


Learn more about how the saving grace of fintech—like Pocketnest—can help credit unions outlast the economic effects of COVID-19 >> Download the white paper.










SOURCES


1https://www.wsj.com/articles/less-stimulus-more-overdraft-protection-11585262468

2https://thefinancialbrand.com/94831/coronavirus-covid-19-loan-credit-layoff-furlough-relief/ 3https://content.transunion.com/v/financial-hardship-report-us-week-five

4https://www.freedomdebtrelief.com/newsroom/covid-19-pandemic-strikes-at-americans-fin ancial-health 5https://theharrispoll.com/wp-content/uploads/2020/04/Wave-2-8_tabs_updated.pdf 6https://www.freedomdebtrelief.com/newsroom/covid-19-pandemic-strikes-at-americans-fin ancial-health

7https://content.transunion.com/v/financial-hardship-report-us-week-five 8https://theharrispoll.com/wp-content/uploads/2020/04/Wave-2-8_tabs_updated.pdf 9https://www.stlouisfed.org/open-vault/2020/april/retirement-savings-secure-act 10https://theharrispoll.com/wp-content/uploads/2020/04/Wave-2-3_tabs_updated-1.pdf 11https://news.northwesternmutual.com/planning-and-progress-2020 12https://www.fa-mag.com/news/crisis-causing-more-young-adults-to-seek-out-financial-advi sors-56198.html 13https://p.widencdn.net/ctwfmm/504_Special-Report-Credit-Unions-and-the-Coronavirus