Page 27 - Banking Finance February 2021

ARTICLE

Bank to peep into the glimpse of post Banks and financial institutions should virtually use this time
of disruption to consider reinventing themselves from the
corona virus era : inside out. It is a time when banks need to better understand
The pandemic has accelerated the shift of digital banking the way consumers expect their financial institution to
by two years, the finance industry is required to grab this support their financial needs. This includes the way banks
opportunity and turn it into boon. For holding hands of the use data, AI, technology and human resources to impact
borrower banks on the basis of government instructions has marketing, innovation and the digital delivery of products
announced various forbearance with regard to loan holidays, and services.
reduced rate of interest, restructuring and relaxed income
recognition criteria. So banks are a great help for the Presently some organizations may retrench and try to save
depositors and remitters. costs because of the financial stress that results from the
massive shutdowns caused by COVID-19. Other organizations
Hand holding of customers at the verge will go beyond looking for efficiencies to create completely
new business models that will impact all components of
of stress due to COVID-19 :
performance. Right now, there is an opportunity to
Banks are the institutions which are having very well reevaluate how technology, insight and analytics can
accepted and secured tool i.e digital/mobile banking. When accelerate the future growth and competitiveness of
earlier there was a global crisis due to subprime lending financial institutions globally. To move forward will require
between 2007-2010 banks were instrumental for that to a a new perspective from top management of financial
great extent. During the COVID-19 crisis banks actually institutions or banks regarding priorities and deployment of
proved as a savior. Banks are of great help to the customer resources.
in distress due to shortage of liquidity and helping them out
digitally banks are actually instrumental in slowing the To better understand the impact of COVID-19 on financial
spread of CORONA VIRUS. Banks are proving them as real services, and after analyzing the recent events which will
friend in need by giving consultation to their customers for have a long lasting impact on the future of marketing,
managing debt, adjust budgets and make full use of new innovation and digital delivery banks are required to come
Government programs. up with a new road map
1. Banks to immediately take care of small traders and
Banks were thinking of customer satisfaction in pre Covid retail they can be groomed to use digital platforms,
era now banks are extending their hands of help with full banks to provide extra support to borrowers in distress.
clarity and transparency by supporting them through digital
tools with which many customers are still not familiar. 2. In normal time many of the customers are reluctant in
using digital banking, such customers are less satisfied
also this is because such customers need to go through
Action plan for post Covid Era : a learning process which they avoid to do and most
In this verge of crisis banks need to meaningfully re-design
their customer agenda to meet urgent needs and to do so
for the uncertain period likely to continue for some time.
Before COVID-19, the banking industry was experiencing an
unprecedented period of growth and prosperity. Despite
increasing consumer expectations and increased
competition from nontraditional financial institutions, most
banks were strong banks. In a matter of only a few months,
the world of banking has experienced a level of disruption
that will change everything that had been the norm in
financial services. There has not only been a major change
in the way financial institutions conduct business, but in the
way employees do their work and the way consumers
manage their finances.

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