The COVID-19 pandemic is the most serious challenge financial institutions have faced in nearly a century. This has led to great economic fallout and need for banks to find ways to mitigate the situation. Banks have taken key steps to ensure they survive and their doors remain open. Here are 3 things we can learn from them.
Focusing on business continuity and planning on issues to increase survival of the business.
Here one ought to manage both branch distribution and internal operations issues so as to maintain client service operations without interruption. Secondly you have to show empathy to your customers while making sound business decisions, this has enabled bank maintain good relationships with customers and give them an opportunity to manage customers perception and brand image.
Rethink balance sheet challenges while managing loan stress and customer sensitivity.
This is mostly prompted when liquidity buffers leading to difficulty in balance sheet decisions; in regards to how the bank will use liquidity available to fund renewals of revolving credit lines and new extensions of credit. In addition, banks have found ways to trim costs and minimize spending on activity that doesn’t build their core capabilities.
Take a long view and replot a post-COVID-19 strategy.
This will involves adapting to new customer norms with new business models, rethink what drives brand loyalty, doing a structure of the addressable market to grow beyond the core, coming up with a new resiliency plan, check out on priority given to capital allocation plans and continue to build upon strong societal relevance.
Read the full article here: https://www.pwc.com/us/en/library/covid-19/coronavirus-impacts-retail-banking.html