How to Achieve Success Post-COVID

The coronavirus pandemic is upending Americans’ lives. From celebrating school graduations in person to conducting them on Zoom video chats, from shopping on Main Street to buying from online retailers, and from working in an office setting to long-term teleworking, consumer behavior is shifting rapidly.

To keep pace, financial services must adapt.

While the stock market and consumer spending have seen their up and downs in 2020, Amazon, which is often viewed as the poster child for e-commerce and innovation, has seen its stock rise nearly 40% year-to-date.

But, the important question financial executives should be asking is: What impact will the coronavirus pandemic and these shifts in consumer behavior have on my business?

For bank and credit union executives alike, they must ask, simply because consumers will be able to visit a branch location once stay-at-home orders are relaxed – will they want to?

According to a recent survey by the Financial Brand, 45% of respondents said their banking behaviors have permanently changed, 31% said they will use online or mobile banking more in the future, and 45% of consumers have made a payment via a mobile wallet in the past month.

Consumers are increasingly in search of frictionless and contactless ways to manage their finances. Gone are the days of the traditional 1,500- to 2,000-square-foot brick and mortar branch. Over the next 24 months, the financial services industry is going to undergo a significant digital transformation. To be frank, the wet signature is toast.

In speaking with many credit union executives, many had already started implementing digital solutions, such as robust online and mobile banking, well before the pandemic began. But current events have served as rocket fuel and accelerated their strategic plans from a five-year implementation period to just a few months.

With consumers increasingly banking from their homes and mobile devices, the time to put those plans into high gear is right now. Expecting consumers to fall back into old habits may be an unwise business decision to make.

As business leaders, we must also take a hard look at our own workforce and company policies. According to findings from Global Workplace Analytics, 77% of the workforce said they want to continue to work from home, at least weekly, when the pandemic is over – a 132% increase from before the start of the pandemic.

With increased demand for strong teleworking policies seemingly on the rise – due in no small part due the coronavirus pandemic – businesses must consider the impact of their internal culture and policies on their ability to acquire and retain top-notch talent in a post-coronavirus world.

I am a firm believer that attracting talented employees will make or break your company’s success. Every industry – not just financial services – will have to adjust to meet marketplace demands.

To overcome this pandemic, our nation has a long road ahead. But I would never bet against America. There are things we can do today to start adjusting and preparing for the future. Take this time to plan, study emerging trends and reflect on how your institution can best emerge from this crisis.

Tomorrow’s outcome is cemented in the steps we take right now. And NAFCU is here to help.

B. Dan Berger is President/CEO for NAFCU in Washington, D.C.