By Ray Birch
MADISON, Wis.—With rising inflation, stock portfolios struggling and a possible recession looming, Gigi Hyland believes it’s time for credit unions double or even triple-down on financial wellness efforts to help get members ready for that next “Mack truck of life.”
The executive director for the National Credit Union Foundation spoke with CUToday.info about she sees ahead for consumers facing high gas prices, rising mortgages, credit card payments, housing affordability issues and more and how credit unions should best respond.
Hyland, who reminded the Foundation provides the Financial Well-Being for All Financial Wellness Program to CUs, believes what credit unions have been doing in terms of financial education--educating for long-term financial stability within households--is still the best course of action, but some tweaks are needed.
“From the Foundation’s perspective, we keep doing what we're doing,” said Hyland. “This is the heart and soul of the credit union movement and we package that work through Financial Well Being for All. The crux of it is this idea of keeping people financially healthy, and helping people weather what's coming up.”
Hyland’s comments are part of a CUToday.info series of articles focused on how rapidly changing economic factors are changing what many members now need from their credit unions regarding financial education and possibly services.
The Difference
Gigi Hyland
But what is different in the current enviornment is the need for, or intensity of, the education, stressed Hyland.
“This is the time for credit unions to not only double down, but to triple down on financial wellness,” said Hyland. “I'm not talking financial literacy, I'm talking about financial well-being. That means focusing on how do we meet people where they are in life. And how do our products and services, coaching and digital experiences meet people where they are so that we can help them through whatever financial crisis there may be.”
Hyland said it is important for credit unions to look back in order to effectively look forward.
“Two years ago, we had a pandemic that hit the nation and credit unions pivoted by offering PPP loans, providing skip-a-pays, by finding ways to quickly adopt a digital strategy to deliver their products and services,” Hyland observed. “This was very unexpected and what I am calling the ‘Mack truck of life’ happened to all of us worldwide. Now, the new Mack Truck of life is inflation and pressures to make sure that you stay on top of the payments that you need to make—whether it's mortgage payments or other loan payments.”
The Credit Union DNA
Hyland reminded that members often face their own Mack Truck, whether that be a diagnosis of cancer, retirement looming with little savings or caring for an aging relative.
“All these events people need help with and credit unions need to fall back on their DNA—this starts with the member and it ends with the member,” she said. “And it really is about improving everyone's financial well-being. This idea that we've got new challenges coming our way, yes, but people's financial lives are a journey and credit unions need to be part of that journey in these challenging times.”
To be effective today and drive results when it comes to financial well-being programs requires an even greater attention to what is going on in members’ lives, according to Hyland.
Not Just Life Stages
“Really know who your members are now and what they're going through,” said Hyland. “Think about not only people's life stages—college, having kids, getting married, retiring—but also their lifestyles. Are they a new young professional in the workforce? Are they a working family that needs their paycheck a day earlier? Think about the personas of your memberships and do your products and services really meet people where they are in life.”
Hyland said it is critical credit unions focus on making financial education make sense for each member’s life.
“That is why I say doubling or tripling down on financial well-being for all is the way to stay the course with these challenges—these winds that are blowing our way,” Hyland said. “But what credit unions do in a crisis is they step up and do what their members need to be done.”
Hyland emphasized that credit unions just need to be ready for what may be coming down the road soon.
Is the Team Ready?
“Is your team really ready and trained (to do a great deal of financial counseling)?” Hyland said. “Do you have a culture readiness to be able to serve and meet people where they are in life? Do you have folks who are certified financial counselors? Do they understand how to leverage empathy appropriately in a business context…There's this combination of tripling down on financial resources and strategy but also making sure that your team has the tools and resources to keep members as financially healthy as they can be.”