Most Americans never dreamed that they would be in the situation that we, as a nation, are currently in. With debts and mortgages causing many sleepless nights, financial institutions’ customers are feeling overwhelmed with their current financial situation and would like to seek help and advice. Credit unions, because of the personal nature of their business, are looking into financial counseling programs to enable their company to offer solutions and guidance to their members. As the need for trained professional arises, many financial institutions that don’t already have an existing financial counseling department face the challenge of getting their staffed trained to be able to offer such advice.
The Credit Union National Association (CUNA) offers training on financial counseling. They have a special program called the Financial Counseling Certification Program (FiCEP) that is designed to provide the skills necessary to handle the sensitive nature of counseling for all members of the staff. The program offers online learning at the participants own pace. There are eight modules that include valuable skills for financial counseling such as; communication skills, taxes, insurance, investments, living expenses, consumer credit, matching values to money and retirement.
Currently over 200 credit unions have used FiCEP. It does help to differentiate one credit union from another as many members look for advice from their financial institution on not only investments, but also other life challenges like retirement, debt management and savings. This is useful program in a down economy, many members are feeling overwhelmed by their monthly expenses and worry about saving for their future. The program is designed to stay current with real-world situations and questions. The one module, “Using Communication Skills During Financial Counseling” is especially important in American culture, as it has always been a taboo to talk about money. Making the individual feel comfortable that the staff member is listening to their concerns and willing to help without judging them on their situation is vital in making the counseling program worthwhile.
But if a credit union doesn’t have enough time to train all of their staff and they need to find a solution quickly, CUNA provides information on companies that the organization partners with who can provide financial counseling on a membership basis. One such company is Accel, www.accelservice.org. Accel provides online and over the phone free and confidential assistance with; money management, budgeting, understanding your credit score, achieving financial goals and debt repayment.
Ace Community Credit Union, based out of Ames, Iowa implemented the Accel Financial Counseling Program in November 2008 because they recognized that they needed to be proactive about providing resources to their members. Ace Community’s President, Timothy Wallen, chose Accel because he recognized that they didn’t have a staff member that had enough flexibility in their day to be able to train to be a financial counselor. Additionally, they understood that people might not utilize a counselor that is located inside the branch because they are embarrassed about their situation. Having researched and checked the references for Accel, he decided that their online or over the phone approach was best suited for his business’s needs.
Promoting the program through statement stuffers and lobby posters, he’s seen the number of members that access guidance steadily grow in the past months. With members being able to use the program anonymously and Ace Community’s “We pay the fee, you ask the questions” statement on their website, the program has allowed members to gain advice on important topics like first time home buying and debt management service without paying the fee for membership. If a member is interested in owning a home for the first time, Accel will look at the members credit score to advise them on what is a good rating and how they may improve their credit score so that when they do decide to purchase a new home, they can get the best rate possible.
One opportunity that Mr. Wallen has found to promote the program and potentially save a member is within the loan department. This program is especially helpful for those that try to obtain a loan, but were denied. Ace Community Credit Union provided training to their loan officers so that when the opportunity arises that a member is turned down for a loan, they provide them with a small card that has the information for the Accel program. The potential members are then able to seek the advice that they need to a loan without having to be embarrassed about being turned down. Once they improve their situation through Accel’s advice, they may then return to try again.
There are several options and companies that a financial institution may use to help obtain the skills necessary to institute a financial counseling program. Whichever way a credit union may chose, it’s imperative to offer financial counseling to members to help them to understand how they may achieve their financial goals and help to increase the credit unions business. If people know that they are always able to find good financial advice from their local credit union, they will stay with that company because they trust them to always look after their best interests. In these uncertain times, trust is the most important asset that a financial institution can have.
