Banks have an obligation to plan ahead for natural disaster relief

When Hurricane Helene made landfall in September, it left a wake of destruction across the Southeast and Appalachia. Hundreds of people were killed, one million were left without power, roads were closed and massive flooding caused an estimated $47.5 billion in property losses. Within a matter of weeks, Hurricane Milton followed, causing even further devastating damage.

Since then, companies have found themselves scrambling to bolster their customers and employees with support — support that could have been ready well in advance. While immediate disaster relief resources will always be necessary, disaster response and recovery offerings should not be left until catastrophe hits. Companies especially learned the importance of providing financial assistance often through web-based tools during the pandemic.

Banks are in the perfect position to support communities — and they should do so by providing easy access to vetted resources that exist both within their communities and nationwide. If they plan ahead, organizations can ensure that if and when a disaster strikes, they are ready to assist. Doing so is not only better for their customers — it’s also better for business.

It’s an unfortunate reality that the intensity and frequency of weather extremes are growing and natural disasters seem to be getting worse. According to the Census Bureau, millions of Americans are displaced from their homes because of natural disasters each year.

Those affected are focused on fulfilling their immediate needs for food, water, shelter, power, internet and cell service, but there is a long road ahead. While consumers work to address their basic necessities, organizations should take the opportunity to look ahead by preparing to support customers through long-term recovery. This means having a centralized space within their consumer-facing website where banks communicate the availability of resources and the bank’s commitment to support them during this difficult time — which can then be easily shared when needed.

Managing income, debt and additional expenses, for example, aren’t yet top of mind when tragedy strikes, because many are understandably preoccupied with securing food, water and shelter. Yet, having a plan in place to support customers’ financial health through disaster recovery can alleviate stress down the road when they inevitably turn to their financial institutions for support. Companies should make financial health resources available to customers now in one easy-to-access place, so they can have a safety net waiting for them when they are ready to focus on that step of recovery. Resources may include those from reputable and vetted organizations that provide help with food, home repair and disaster-specific assistance.

Another hurdle for people recovering from a natural disaster is misinformation and prevalent scams with unscrupulous actors deliberately targeting those who are recovering. By preparing their response ahead of time, organizations ensure that individuals who are looking for help find trustworthy sources for resources and guidance. Long-term needs should include help with paying for critical home repairs and higher utility expenses, or accessing financial counseling and mental health support. By doing what they can to aid in customers’ ongoing recovery, organizations will help secure a more resilient future for themselves, their customers and their own employees who are facing financial hardships.

Providing disaster relief for customers isn’t just a “nice to have.” Research shows that stepping up during the recovery phase is, in fact, good for business.

Many large companies now engage in corporate social responsibility, or CSR, and environmental, social and governance, or ESG, yet for all their good intentions, policies often fall flat and fail to deliver true impact at the community level. When organizations choose to support their communities in the aftermath of natural disasters, they also move the needle on their CSR and ESG targets — progress that stakeholders and potential stakeholders will take note of. Using technology to aid in the dissemination of available disaster-specific resources will streamline a company’s ability to report specifically how they were able to help people and communities affected.

Helping customers also has a positive impact on a business’s brand, with research showing that consumers rate companies more favorably when they contribute meaningfully to natural disaster relief. This can mean being a source for reputable and up-to-date disaster and recovery resources that people can access discreetly and quickly, making it possible for customers to repay debts or cover expenses while they’re waiting on insurance payouts.

Acting quickly has also been found to improve customer engagement. Firms that respond quickly and purposefully for their customers have seen increased revenue in affected regions. Indeed, it stands to reason that helping communities get back on their feet has a positive effect — back to normal means back to business.

As national attention quickly fades after the storm, financial institutions should already have planned ongoing recovery commitments for their customers and employees alike. These considerations can have outsize long-term impacts and go far in bolstering an organization’s positive impact.

While the headlines are full of stories of banks giving millions to natural disaster relief, making a difference is not exclusive to big brands with large budgets. In fact, providing ongoing access to localized support is often more meaningful and relevant to recipients when companies demonstrate a vested interest in the community’s revival.

With natural disasters becoming more common, disruptive and difficult to recover from, it’s imperative that organizations incorporate recovery resources into their support. Planning disaster relief before crisis strikes gives companies a blueprint to show up for their customers in the face of adversity — and provide effective, reliable, long-term relief that will make a difference for all. In today’s world, this should be a mainstay part of any company’s’ customer strategy.