“Touch point” financial education is an effective way to reach members with money management advice and referrals. Front line staff are in the best position to recognize these touch points and deliver financial education but they need to be trained and empowered to do so. This advice comes from Lois Kitsch, NCUF’s Real Solutions National Program Manager. Lois discussed the need for financial education in an audio conference about payday loan considerations for credit unions.
We all agree that financial education is an important component to member service (and especially to any payday loan alternative), but what is the best way to deliver that information so that it is actually helpful to members? Lois advises providing small amounts of appropriate information and referrals to financial counseling at “touch points” when interacting with a member one-on-one. The best time would be when the member is not in a stressful situation and after you have established trust with them. For example, provide information and referrals when dispersing a loan that helps a member out of a financial bind, not when they are applying. Lois suggests educating members about the difference between credit unions and payday lenders, and the value of saving for emergencies. Money management advice can help members evaluate and improve their financial situation; they should be encouraged to determine the cause of their financial stress and make changes in their expenses, earnings, or lifestyle. Front line staff can use these touch points to refer members to one-on-one financial counseling to help them improve their financial situation. To do this, employees must know basic money management concepts and be aware of the warning signs of financial distress.
Sounds great, but how many front line staff have the knowledge and are empowered by their credit union to do this?
Keywords: Financial education, member service, money management, payday lending