MoneyTrend: Adapting to a COVID WorldOperators Rise to Face Operational Challenges“Essential” Designation Carries Responsibilities to Customers and EmployeesBY JILL E. RITCHIEIn the film Cast Away, Tom Hanks plays Chuck Noland, who is shipwrecked on a deserted tropical island. In one moment, life as he knew it completely changed. Chuck had to learn to do everything differently to survive – eating, sleeping, and even removing his own infected tooth. In March, our lives completely changed with the onset of the COVID-19 pandemic. We learned about social distancing, sheltering in place, and the symptoms of a rapidly spreading virus. As operators of financial service centers, it was no longer business as usual.As various states issued executive orders requiring individuals to shelter in place, certain businesses were forced to shut down. Most important, many orders recognized the critical value of our services to our customers. Our industry’s workforce is included in the U.S. Department of Homeland Security Critical Infrastructure Sector as vital to the U.S. economy. Further, many state governors issued executive orders declaring our industry essential.With the essential designation came the responsibility to protect our customers and employees. To remain open, many state and local governments required compliance with the Centers for Disease Control (CDC) recommendations on social distancing, face coverings, and sanitation. As an industry, we increased cleaning protocols, adjusted employee schedules to limit exposure, provided personal protective equipment such as masks, gloves, hand sanitizer and thermometers, and required customer spacing. Marketing teams were busy creating new signs with COVID-19 messaging, CDC guidance, and social distancing floor graphics. Initially, many supplies were difficult and costly to obtain. Remaining open was important for our customers but challenging, as costs increased and revenue decreased.As Financial Service Center operators, our employees are our most important asset.During the pandemic, our frontline employees were critical in providing essential services that allowed our customers to access life-saving basic necessities. These employees were exceptional in an environment that was a daily challenge. As essential workers, they needed to travel to and from work during the various Stay at Home orders. In order to protect them from potential issues, we provided them with letters to carry noting their designation by the government as an essential worker. As employees tested positive for the virus, we made sure that these employees were cared for through employee leave programs. To protect other employees, the locations were cleaned and individuals were notified of potential exposure.As Stay at Home orders limited customer mobility and employment, revenues decreased. Insurance policies were reviewed for business interruption clauses. Negotiations with landlords over rent relief and deferral became common. Some state and city governments passed legislative relief for tenants and landlords, including anti-eviction and anti-harassment measures and property tax deferrals. Lease agreement language became critical. Force Majeure is a common clause in contracts that relieves parties of their contractual obligations due to unforeseeable circumstances. In most cases, those clauses provided no relief for the impact of CO- VID-19. After this pandemic, no one will look at a Force Majeure clause in the same way again.During the pandemic, many state regulators requested updates on store operations. Some state regulators proactively helped, while others erected additional challenges. For example, some were willing to postpone examinations and reporting requirements, allowing us to focus on running the business in very challenging times, while others required additional reports.Financial Service Centers were convenient and affordable locations for the cashing of federal government stimulus program checks. With the closing of bank branches, often we were the only option to cash stimulus checks in support of the government policy of assisting vulnerable populations. Additionally, we provide automatic teller machines (ATM) for the convenience and use of our customers and the public. These ATMs, often located in the lobbies, are frequently the only ATMs in communities without access to banks. Prepaid card sales increased as many consumers switched to online purchases of goods and services.Many refer to the post COVID-19 era as the new normal or the next normal. Several of the implemented measures, such as increased sanitation, social distancing, and the use of personal protective equipment, will remain in place for the foreseeable future. As case counts rise and fall, we will need to monitor federal, state and local regulations, rules and guidance, as the requirements for our businesses will likely change. Post COVID, longterm changes could include increased digital product offerings and redesign of physical locations.No one truly knows what the new normal will be. In Cast Away, once Chuck is rescued, he is unable to return to his old life – initially he cannot even sleep in a real bed. Post COVID-19, we know that life and certainly our business operations will be changed forever. However, our industry’s resilience, entrepreneurialism and our dedication to providing critical financial services to our customers will always remain the same. Jill E. Ritchie is Director of Public and Governmental Affairs for PLS Financial Services Inc. Thanks to PLS Operations and Real Estate for their assistance with this article. Ritchie may be contacted at jritchie@plsemail.com.