R Rising inflation and interest rates, stock market turmoil, an end of government support during the pandemic, and countless other financial setbacks have coalesced into a bleak economic environment for consumers. While many of these consumers are unprepared for a possible recession, financial institutions have a responsibility – and opportunity – to help educate these consumers on how to weather these storms. Through a panel discussion, we asked experts to weigh in on how financial institutions can use this downturn as an opportunity to strengthen relationships with consumers and commercial partners. EVERFI’s VP of Strategic Partnerships, Ryan Swift, moderated the discussion with our panelists, who included: • Mimi Joy, Head of Partnerships at the Financial Health Network; • Freda Lee, Senior Vice President, Relationship Management at Corebridge Financial (formerly AIG); and • Richard Knight, Co-founder and Managing Partner at Global Leader Group and former executive at HSBC. Here, we’ll share the four key themes that emerged from the discussion and how financial institutions can not only help their audiences survive during these challenging times but also position themselves as a trusted resource and long-term supportive partner. 1. Measure the Financial Health of Your Communities Before crafting a customer outreach strategy, institutions need to gather a clear picture of their communities' current financial health. Financial institutions can use a number of tools to measure financial health, but one format the Financial Health Network utilizes is tiering consumers into three broad categories: • Financially Healthy • Financially Coping • Financially Vulnerable Financially healthy consumers manage their day-to-day expenses, absorb financial shocks, and progress toward meeting their long-term financial goals. Those who are financially coping pay most of their bills on time and have near-prime credit scores, but they may struggle with long-range financial planning or lack adequate insurance products. Financially vulnerable individuals struggle in all categories of their financial health. How to Prepare Consumers for a Recession Three Experts Share Their Advice for the Months Ahead BY EVERFI www.coloradobankers.org 16
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