Expect Social Distancing In The Future Of Banking And Insurance

How people manage their money in the post-pandemic economy depends as much on people's psyche as it does on the COVID-19 contagion itself, according to a local banker, insurer, accountant and money manager.

Even if the spread of the virus is contained through recovery and immunity, each of these financial industry representatives has an expectation of what the consumer might be doing differently compared to six months ago.

As it was during a stay-at-home economy, expect online interaction to continue as a primary way of conducting business like banking, said Rick Wallis, president and CEO of Piscataqua Savings Bank.

"Customer relationship building is very important; you can't just do it online," Wallis said. "I think we try to blend the two together - electronically, but at the same time individually. Call, talk to, come in and see us - I don't think that's going to go away; I'm hoping it won't."

The lobby of his bank on Pleasant Street in Portsmouth currently is closed to the public. Outside walk-up and drive-through services are available to customers. He envisions what he called a "tip-toe" approach to re-establishing the economy by re-opening businesses like his slowly and with safeguards such as sanitizing and plastic shields between employees and customers.

"There's a lot of material that we're trying to bring into place so that we can do it and do it safely," Wallis said. "I would love to have us by end of summer being fully open again, but I think it's really going to depend on where the virus goes from here."

One important effort cited by Wallis to help get the community and its economy back on its feet is the bank's participation in tax credit programs for non-profits backed by the N.H. Community Development Finance Authority. New Hampshire businesses, such as his bank, support selected projects by purchasing tax credits, resulting in the nonprofit receiving a donation and the company receiving a 75% New Hampshire state tax credit against that contribution.

"It's a scary time," Wallis said. "We don't know what's going to happen down the road, but we want to be supportive."

With all the talk of a new post-pandemic normal, money manager William O'Malley reminds that there have been new normal discussions before - after the 9/11 terrorist attacks in 2001, after the real estate-fueled Great Recession of 2008 - when, but for a few adjustments, the economy returned to a more normal state than people predicted.

His biggest advice, as people try to peek over the horizon past the pandemic, is to remember that investing is a marathon, not a sprint. The markets have taken a dive with some recovery during this pandemic, just as they did after 9/11 and after the 2008 recession.

"You cannot be a successful investor reacting to what the market is doing on a daily basis," said O'Malley, with Troiano Wealth Advisory at Stifel, One New Hampshire Avenue at Pease International Tradeport.

"If you're a long-term investor, your odds of being successful are so much greater than a short-term investor - I call it being an investor versus being the speculator," he added.

O'Malley advises clients, no matter the current state of the economy, have a financial plan that includes a safety net of money set aside to pay the bills (he recommends six months' worth) in the event of unemployment or other circumstances.

"That can happen to you personally that has nothing to do with the financial markets," he said. "You should just set that money aside, just to prepare yourself for misfortunes which happen to everybody over the course of their life."

For insurer Jean Sousa, plexiglass guards, masks, sanitizing wipe downs, and hand sanitizers will be the order of business once her State Farm Insurance office on Portsmouth Avenue in Stratham reopens to customers. In her 33 years, she said she's endeavored to uphold the "Like a Good Neighbor" policies of State Farm, from car insurance to homeowners, health and life.

"Customers used to be able to walk in without an appointment and say: 'Hey, can I talk to somebody about my insurance?' That's what is missing," Sousa said. "I don't know if that will ever feel normal again. I don't know how willing my market area is going to be. I don't know if they're going to want to do that. That remains to be seen as an industry."

Mark Boulanger is a partner at Raiche & Co., a certified public accountants firm on Central Avenue in Dover. He said the 2020 tax year will be influenced by issues directly related to the pandemic, such as unemployment benefits, business finances complicated by government relief loans and bankruptcies.

"You have to remain hopeful in this environment," Boulanger said, "and you have to continue to do what you can to take care of your family, first and foremost, and make sure that you do the best thing that you can to help your business to survive and try to keep your employees working for as long as possible."