Pivoting Again to Better Serve Members Amid Inflation

Credit unions – as did many other industries – had to pivot and redefine our service models and employee needs during COVID. Today’s current economic challenges require us to pivot again and dig deeper to find ways to better serve our most vulnerable members.

As we serve our members, we can’t forget that we also have financially vulnerable employees that need our attention.

Created to provide financial services to those members of modest means, credit unions may be the only place some people can go to get free financial counseling, flexible loan products and better rates on those products.

Credit unions across the nation are being intentional and creative about meeting our members’ needs.

At Lower East Side People’s Federal Credit Union ($92 million, New York, N.Y.), I was excited to see the innovative way they brought financial services to the unbanked and underbanked. After seeing how banks and credit union branches in the Bronx had been replaced by check cashers and pawn shops, Lower East Side, working in collaboration with the Bronx Financial Access Coalition, launched a mobile branch.

BECU ($29.5 billion, Tukwila, Wash.) rewards members who work to improve their credit scores through its Reprice Program. It automatically reduces interest rates on some loans and credit cards for those who demonstrate healthy financial habits, thus saving them money.

At Redstone, we are tackling high gas prices for an area of the country noted for its lack of efficient public transportation and an abundance of SUVs.

We recently launched one of the industry’s highest cash back credit card rewards on gas purchases for our members. Our Visa Signature credit card users can earn 6% in cash back rewards on gas purchases through Sept. 30, 2022.

High gas prices affect us all. However, for those on limited or fixed income, $5-a-gallon gas goes from being an inconvenience to a financial burden.

For employees, we are providing up to $350 in gas stipends through September. The gas stipend is paid biweekly. Full-time employees working in the office receive $50 each payday; part-time or hybrid employees get $25. Our executive team is exempt.

For those employees facing serious financial hardships due to disaster, loss of income, or increased medical or family expenses, we offer the Employee Assistance Loan. It provides up to $5,675 at 1%, up to 60 months. This program is similar to the low-interest loans we have offered during government shutdowns or furloughs. We are fortunate to serve a high number of military and DOD civilians and maintain an array of flexible products to answer their unique needs.

Similarly, our 1,300-plus employees also have unique needs. They are not a monolithic group. Some are well into their careers, other just starting. Some are caring for a household alone or caring for aging parents. Others are rebuilding after a financial setback.

These are life stressors that can’t be ignored. That’s why we offer our members and employees financial education to help strengthen their money-management skills.

Our industry helps our members through their financial storms. We work with them to find the loan, program or service that best fits their needs. Why would we do any less for our employees?

We know there is more we can and should do and we are committed to working to that end.

“I Hear You” is our first cultural belief, and in taking that a step farther, we want to respond with solutions that are creative and visionary.

Joe Newberry is President/CEO for the $7.6 billion, Huntsville, Ala.-based Redstone Federal Credit Union.