by Timothy McQuiston, Vermont Business Magazine Joyce Marcel first sat down with Rob Miller, CEO of VSECU, before the novel coronavirus (COVID-19) hit home here in Vermont. So we followed up with Miller on what the credit union is doing and what it means for individual finances and the economy.
“We have plans developed for these kinds of situations and are in full execution mode,” Miller said. “The purpose is to maintain business operations because the public must have access to basic banking services. So, you do everything possible so you don’t close the bank or credit union.”
VSECU is following a protocol similar to nearly every financial institution in Vermont as of press time (March 26, 2020 for the April print issue), by closing branch lobbies, but maintaining ATMs and online banking.
They have also instituted hardship plans for customers affected by layoffs and business closures. See below.
Vermont Business Magazine Questions related to COVID-19 There is inevitably going to be pressure/missed payments on loans of every type, including credit cards, what is VSECU’s plan for all that?
Miller: We are expecting those situations and are prepared to meet the needs of our members to the greatest extent possible. We immediately launched a member emergency loan (see www.vsecu.com/memberemergencyloan) and a number of other accommodations to provide needed relief to our members, both individuals and businesses. This goes to the heart of our purpose as a member-owned credit union – to improve our members’ quality of life – especially those in greatest need and in times like these.
What should the state do to help you and your customers from a financial perspective?
Miller: We have already received support in the form of additional flexibility and openness from the Vermont Department of Financial Regulation. And I anticipate that their support will only become more significant over time. They understand the nature of this crisis and the potential impacts on people and businesses, as well as our credit union over the long term. We are working with community partners, including philanthropic organizations, to provide financial support for emergency loans to members. This could also be an excellent form of support from the State of Vermont. I also welcome the State to reinforce the same message we’re giving to our members that banking at your credit union is an essential need, and we will continue to provide those services through the crisis; although it may be delivered in different ways. I’m sure there will be other areas, and we are grateful that the State and Department of Financial Regulation have been proactive and demonstrated their openness to ideas and actions.
What should the federal government do to help out? For instance, several European countries are stepping in to ensure loans do not go into default. Great Britain is putting in a whopping $400 billion (on a scale, this is way more than the US is talking about at about 1/7th of the economy), including direct grants to small businesses). What does Rob think of all that?
Miller: I would welcome anything the Federal Government can do to support individuals and businesses in need, whether it be money in pocketbooks, a hiatus from tax payments, more regulatory flexibility for banks and credit unions, increased unemployment benefits, etc. Anything in support of helping people and businesses through this crisis will not only help us better serve our members, but also help us manage our business. I don’t know that the federal government can overreact given the potential severity of the current situation.
The Wall Street meltdown/Great Recession is not that long ago, could COVID create another such financial problem, or one that is even worse?
Miller: The financial crisis of 2008 was a different situation with unique causes. While it is way too early to understand the potential impact from today’s crisis, I am hopeful that the length and long-term effects will be less significant. There is no question, though, that the immediate impact is severe, especially on people and businesses directly affected. With that said, we should be prepared to the greatest extent possible for it to get worse or go on for longer than we hope.
VSECU Response HOW ARE WE MODIFYING ACCESS?
Branch lobbies will be closed to protect our staff and members. Credit union services will remain accessible to members through our drive-through service, video teller service, ATMs, and phone service. Each branch offers unique accommodations. Members will always have access to their accounts and their funds using the options listed on our website.
HOW WILL THIS AFFECT YOU?
Modifying in-person branch access may cause some level of customer service that falls short of our typical expectations. We anticipate call volume will increase and wait times may be longer than normal. Our promise to you is continued access to your accounts, money, and essential financial services and personal consultation.
WHY IS THIS ACTION ESSENTIAL?
What we know about COVID-19 right now, is that limiting contact with others is an imperative step in mitigating the spread of the disease. Our federal, state, and local governments and the Centers for Disease Control & Prevention have provided guidance to individuals and businesses to help slow the spread of this coronavirus. We have incorporated that guidance into every decision we make as the COVID-19 crisis evolves.
FINANCIAL HARDSHIP AND STRESS
If your finances are affected by the COVID-19 coronavirus or you suspect that they will be, you have options. Please contact our member service consultants to find out how you can take advantage of our Member Emergency Loan, to cover costs during the crisis, or one of our loan modification plans, to help minimize the impact of your current loans on your cash flow.