In 2020, the pandemic forced many of us to change how we do business and to do it fast. As state-issued lockdowns caused brick-and-mortar businesses to close their doors and people turned to digital solutions, such as e-commerce and digital wallets for everyday transactions, many credit unions around the country were forced to enhance their digital services and make big changes to how they operate.

The National Credit Union Administration (NCUA) consistently provides guidance and resources to help credit unions better serve their communities. With funding from Congress, they have been able to fund the Community Development Revolving Loan Fund (CDRLF) for many years,  enabling CUs in rural and underserved communities to continue providing basic financial services to their members with the hopes of bolstering their local economies through loans and technical assistance grants. While the 2021 funding of the program was put at risk in 2020, the program managed to stay alive and is again accepting applicants.

In these difficult economic times, it’s important for credit unions to take advantage of the resources available to them, especially credit unions that serve low-income communities. After all, credit unions were founded on the core tenets of collaboration and helping the members of their communities, which means during times of crisis, members count on their CUs to deliver the service they need. That’s why understanding what grant and loan programs are available and how to qualify can be key for credit unions.

When the pandemic hit in March of 2020 and caused a nationwide shutdown, many credit unions had to scramble to update their digital banking services as quickly as possible. Their hard work and adaptability were honorable, and most CUs were able to provide adequate digital services in a timely manner and maintain their member base. However, digital technology is never at a standstill and the transformation for CUs is far from complete.

The rise of competition in the finance space is unprecedented. Fintech companies like Venmo and Paypal have been attracting younger users with social components to their apps, while tech giants such as Google and Apple have altered consumer behaviors with digital wallets. Even apps like Uber and Amazon are reshaping customer expectations with one-click ride sharing and shopping. The services these tech companies offer have a few things in common—they’re fast, efficient, and digital. They also encroach on traditional banking spaces, posing a potential threat to credit unions.

Maintaining personal relationships with members has always been pivotal to the success of credit unions. After all, credit unions were founded on the tenets of cooperation, and they encourage participation from all members of the community regardless of race, gender, or financial situations. But when the pandemic closed the doors to branches in March of 2020, and CUs were forced to make their services digital almost overnight, providing the same type of personal attention they were used to posed a challenge.

Let’s face it, the world has changed drastically since the beginning of the pandemic. We’re now living in a digital age where people want digital solutions to problems that used to be handled in person. This has had a huge effect on how all sorts of businesses operate, including credit unions. The days of credit unions conducting most of their business in the branch are over, and unlikely to return.

Consumers are filled with expectations of service providers that are often at odds with each other. They want service to be both expedient, but thorough. They want customer service interactions that are friendly, but formal. They want to have attention paid to them, but not too much. They want access to be convenient, but they demand that access be secure. Convenience and security, especially in the financial sector, require a delicate balance. The more you increase security measures, the less convenient a process becomes. But make a process too convenient by reducing security measures and you put both the user and the service provider at risk. It is this balance that credit unions must achieve to be successful.

The pandemic forced businesses around the world to shutter their doors, and sadly for many, they will never re-open. Among the businesses that were able to adapt and survive, many did so by turning to digital technologies to solve problems and conduct transactions that were traditionally done in-person. This has created a boom in technology that has implications for many different sectors of the business world and economy.

The events of 2020 and the ensuing pandemic shifted the world economy in unprecedented ways. Enforced global lockdowns suddenly changed consumer habits, causing all sorts of businesses to adapt and reevaluate how they can best serve customer and member needs. For many, this meant relying on digital solutions to perform financial transactions that were traditionally conducted in person—amplifying the importance of a sound digital ecosystem.