Subscribe to The Financial Brand via email for FREE!
We are beginning to see the early economic impact of the Coronavirus outbreak in the U.S. and globally. Beyond the human healthcare aspect, it is clear that the outbreak will disrupt the global supply of goods, making it harder for U.S. firms to fill orders. But as events get cancelled, schools and offices close, and social withdrawal becomes the norm, the demand for products and services will decrease, workers will lose jobs and some businesses may shut their doors forever.
With the virus that causes COVID-19 spreading to significantly more communities around the country, its becoming clear that the epidemic is the biggest threat to the global economy since the financial crisis almost a dozen years ago. In a startlingly short period of time, spending and confidence that until recently underpinned the economy and supported a record-breaking job market for more than a decade appear to be coming to a screeching halt.
For consumers, the impact of being sent home because demand for their services are not needed at this time (or the need to stay home to care for a sick loved one or a child without a school to attend) differs depending on the specific circumstances. There is far less impact for a middle income worker telecommuting from home than one who is out of a job without unemployment benefits or a safety net of funds available for emergencies.
If the health crisis continues for an extended period, the impact on income and future employment becomes less certain and more at risk. The impact is even more uncertain when we consider the impact of global supply chains potentially drying up.
Eleven states and the District of Columbia require employers to offer workers paid leave, but none of these states guarantee paid leave to healthy workers if a virus outbreak requires everyone to stay home. Because of this gap, 14 Democratic senators wrote to leaders of the Business Roundtable, the Chamber of Commerce and the National Association of Manufacturers tourge their member companies not to penalize workersfor going home during the outbreak, according to Politico.
It is clear that we are entering completely uncharted waters.
Read More:
( sponsored content )
According to Alex Johnson, Director of Portfolio Marketing for FICO, Most of the time, consumers dont think about banking at all. They just expect it to work. The only times they really think about banking is when there is a financial need or when theyre facing a crisis. Johnson continues, Delivering solutions, tailored to each individual customer, is what builds trust and brand loyalty in these moments.
This need has not gone unnoticed by the regulators. A joint statement from the Federal Reserve, CFPB, FDIC, NCUA, OCC and Conference of State Bank Supervisors stated, Regulators note that financial institutions should work constructively with borrowers and other customers in affected communities. The statement continued, Prudent efforts that are consistent with safe and sound lending practices should not be subject to examiner criticism.
To stimulate the economy, the central bank also cut its benchmark short-term lending rate by half a percentage point, with the rate expected to go even lower soon. The President also indicated the potential for additional stimuli, including a possible direct payment to consumers, a cut in payroll taxes and other options.
These are extraordinary times and they require extraordinary thinking and actions, states Bryan Clagett, Director of Strategic Initiatives for StrategyCorps. From a tactical level, financial institutions can do a lot to reduce consumer and business stress. For years Ive seen and heard bankers preach advocacy. Its put up or shut up time.
While some consumer relief strategies can be offered unilaterally (such as reductions in lending rates or elimination of penalty fees), now is a perfect time to leverage both personalized strategies as well as the use of advanced analytics to deliver contextual solutions.
Some examples that should be considered on a case-by-case basis include:
One of the most impactful offerings may be the availability of short-term, small-dollar personal lines of credit that can provide relief for consumers needing funds until an upcoming employment or benefit check is received. Similar to the high-rate payday loan offered by third party vendors, a much lower rate offering from a traditional or fintech organization can create tremendous positive impact on a consumer experiencing financial stress.
This type of small dollar personal loan offering should be offered on a pre-approved basis (and for varying amounts) directly on a banks or credit unions mobile app. With instant access, and the ability to repay the borrowed funds automatically when a deposit is made, this service should take into account the longevity of the relationship, utility and rent bill payment history as well as other non-traditional credit criteria.
To provide people with more financial instruments during Black Swan events like the Coronavirus outbreak, financial institutions should look for more ways to help their customers and members tap into their credit, their savings, and other sources of income to sustain them when they are unable to work, states Bradley Leimer, co-founder of Unconventional Ventures. More innovation has to come from within banking and from our friends in fintech.
According to best-selling author, speaker and founder of Moven, Brett King, After years of continuous growth, banks and lenders should be seeking to alleviate some of the stress of Coronavirus with mortgage holidays and temporary rate reductions on credit lines for effected individuals. Its time for banks to show their social and community commitment.
( sponsored content )
Unfortunately, the challenge for many traditional financial institutions is a combination of a lack of simple digital product offerings as well as an inability to deliver highly personalized financial solutions seamlessly.
According to Ron Shevlin, Director of Research at Cornerstone Advisors and senior contributor to Forbes, Nearly every financial institution Ive surveyed or spoken to says that personalization is important to their customer relationship building efforts. But when it comes to personalizing a product like offering flexible payment terms on mortgage payments, or allowing someone to skip a payment its oh no, we cant do that.
We found the same to be true in research conducted by the Digital Banking Report. As would be expected, the largest financial institutions had the highest self-assessment around the ability to provide real-time contextual guidance. That said, less than 20% of the large national and regional banks considered themselves Advanced in this capability.
While it was somewhat encouraging that almost 60% of financial organizations in all asset ranges considered themselves as Emerging (10% higher than in 2016), the overall percentage of institutions believing they were Advanced is dismal. Bottom line, 94% of financial institutions are still unable to deliver on the personalization promise.
Unfortunately, most responses to the Coronavirus outbreak have consisted of email messages to customers and members, discussing a commitment to the community and willingness to help, with close to zero specifics beyond phone numbers to call. In the case of my primary business bank, they also offered links to digital bill payment solutions and their overdraft solutions page. (#epicfail)
REGISTER FOR THIS FREE WEBINAR
The Crawl, Walk, Fly Approach to CX Like the Big Brands
Leading consumer brands provide a better customer experience by using data and insights to drive relevancy and personalization and integrate the experience with other channels.
Thursday, April 2nd at 3 pm EST
Obviously, if the Coronavirus epidemic gets much worse, branch banks may be forced to limit operations or potentially close some branches if there are not adequate employees to support the office. In China many banks needed to close hundreds of offices during the height of the epidemic. Many banks and credit unions in the U.S. are developing contingency plans, but how does the consumer and small business get impacted if a local branch needs to close?
Government agencies understand that financial institutions may face staffing and other challenges. Regulators stated that they will expedite, as appropriate, any request to provide alternative availability of services in affected communities. In these situations, it becomes clear the importance of digital banking solutions across the organization, from opening accounts and applying for loans to disbursement of funds.
Consumers, small businesses and bank employees are looking for relief during these unusual times. While some may be forced out of work or may simply just be emotionally impacted by the current inundation of stressful economic messages, everyone will be looking to their local financial institution for a calming influence and financial solutions that will help.
What is the culture of your organization? Can you deliver on your promise of delivering a positive customer experience? Can you illustrate your support for your employees?
One example of how an organization put their corporate culture to the test was WeLab in Shenzhen China. When the Chinese fintech reopened their offices, employees received Welcome Bank Packs that included hand sanitizer, anti-bacterial wipes, face masks and additional goodies. Most importantly, these Welcome Back Packs were assembled by the senior management team at WeLab.
At times of crisis, how you treat your employees and your customers speak volumes about your values, shared Theodora Lau, founder of Unconventional Ventures. From allowing interest-only payments for mortgages, to suspending debt repayments, to extending relief loans for small businesses, we must ensure that the societys most vulnerable citizens have access to a safety net. How our financial institutions choose to act will have a long lasting impact in the lives of their customers and beyond.
Read the original:
Banking Must Provide Financial Relief In Times Of Economic Stress - The Financial Brand
- How dogs are paving the way for human longevity drugs - Longevity.Technology - April 12th, 2024 [April 12th, 2024]
- Innovative Approaches to Improving Human Longevity - Securities.io - April 12th, 2024 [April 12th, 2024]
- Top 5 Companies Offering Solutions to Increased Human Longevity - Securities.io - April 12th, 2024 [April 12th, 2024]
- Morning Medical Update: Gut bacteria and longevity; People with ... - Medical Economics - June 12th, 2023 [June 12th, 2023]
- Artificial Intelligence and the Aging Process: A Match Made for ... - Down to Game - June 12th, 2023 [June 12th, 2023]
- Saint Bernard Lifespan: How Long Do Saint Bernards Live? - AZ Animals - June 12th, 2023 [June 12th, 2023]
- 'Human Resources' Was Poised to Be Netflix's Longest-Running ... - PRIMETIMER - June 12th, 2023 [June 12th, 2023]
- Early Life Adversity Doesn't Affect Gorillas Like Other Species - The Good Men Project - June 12th, 2023 [June 12th, 2023]
- Wellness luminaries, experts to meet in KK - The Borneo Post - June 12th, 2023 [June 12th, 2023]
- I grew up with hazardous smoke from forest fires in Asia. Here's what ... - Morningstar - June 12th, 2023 [June 12th, 2023]
- Workplace Networks Are More Important than Promotions to Engage ... - GlobeNewswire - June 12th, 2023 [June 12th, 2023]
- Accenture staff working at Google training AI move to unionise - The Australian Financial Review - June 12th, 2023 [June 12th, 2023]
- Hair Wigs and Extension Market Size to Grow by USD 5.26 billion from 2021 to 2026, Growth Driven by Technologi - Black Enterprise - April 10th, 2023 [April 10th, 2023]
- Want to age like a fine wine? Here are some tips for longevity and feeling younger - The Indian Express - February 18th, 2023 [February 18th, 2023]
- Human body | Organs, Systems, Structure, Diagram, & Facts - January 27th, 2023 [January 27th, 2023]
- Human | Avatar Wiki | Fandom - January 27th, 2023 [January 27th, 2023]
- Calorie Restriction and Fasting Diets: What Do We Know? - January 4th, 2023 [January 4th, 2023]
- Emma Thompson On Longevity Of Holiday Fave Love Actually But It Is SEX Actually That Is Earning Her Awards Buzz In Leo Grande - Deadline - December 26th, 2022 [December 26th, 2022]
- Heads or tails: What statistical models tell us about the probability of living beyond 110 - The Conversation - December 12th, 2022 [December 12th, 2022]
- LinkedIn founder and VC Reid Hoffman says human amplification via A.I. will revolutionize large enterprises in the next five years - Fortune - December 12th, 2022 [December 12th, 2022]
- Human hibernation is possible and could boost longevity | New Scientist - December 2nd, 2022 [December 2nd, 2022]
- Home - Human Longevity Institute - October 23rd, 2022 [October 23rd, 2022]
- Exercise: 7 benefits of regular physical activity - Mayo Clinic - October 23rd, 2022 [October 23rd, 2022]
- Life expectancy - Wikipedia - October 13th, 2022 [October 13th, 2022]
- Life Expectancy - Our World in Data - October 13th, 2022 [October 13th, 2022]
- The Longevity Investors Conference Gstaad brought together longevity experts and deep-pocketed investors - Cointelegraph - October 13th, 2022 [October 13th, 2022]
- The Search for a Pill That Can Help Dogsand HumansLive Longer - WIRED - October 13th, 2022 [October 13th, 2022]
- Aging of the Heart Correlates With a Poor Gut Microbiome - Lifespan.io News - October 13th, 2022 [October 13th, 2022]
- Aditxt, Inc. (Nasdaq: ADTX) Announces Development and Publication of a Mathematical Model for Predicting Longevity and Variations of Immune Response... - October 13th, 2022 [October 13th, 2022]
- FOXO Technologies Announces First Distribution Partner and Begins Product Rollout in California; Expands Executive Team With Insurance Industry Talent... - October 13th, 2022 [October 13th, 2022]
- A conversation with Holocaust scholar Dr. Irving Berkowitz - South Florida Sun Sentinel - October 13th, 2022 [October 13th, 2022]
- Nine postdoctoral fellowships in aging research awarded by the Glenn Foundation for Medical Research and AFAR - EurekAlert - October 13th, 2022 [October 13th, 2022]
- The 5 Wellness Habits That Slow Down Aging, Science Reveals Eat This Not That - Eat This, Not That - October 13th, 2022 [October 13th, 2022]
- Winning Federal Contracts on the Top 20 Contract Vehicles - Bloomberg Government - October 13th, 2022 [October 13th, 2022]
- Lawrence Austin promoted to rank of colonel - Winona Times - October 13th, 2022 [October 13th, 2022]
- The longevity dividend: Work in an era of 100-year lives - October 2nd, 2022 [October 2nd, 2022]
- Retirement Savings Calculator - Northwestern Mutual - October 2nd, 2022 [October 2nd, 2022]
- Clues to Human Longevity Unearthed in Largescale Mouse Genetic Study - Genetic Engineering & Biotechnology News - October 2nd, 2022 [October 2nd, 2022]
- Can we find ways to live beyond 100? Millionaires are betting on it. - MIT Technology Review - October 2nd, 2022 [October 2nd, 2022]
- Restrict Calories to Boost Immune Function - The Epoch Times - October 2nd, 2022 [October 2nd, 2022]
- The Black Progress Index: Examining the social factors that influence Black well-being - Brookings Institution - October 2nd, 2022 [October 2nd, 2022]
- Kevin Williamson on Scream 6 and Franchise Longevity - Bleeding Cool News - October 2nd, 2022 [October 2nd, 2022]
- 507-Year-Old Clam May Be the World's Oldest Living Being - History of Yesterday - October 2nd, 2022 [October 2nd, 2022]
- I should look forward to early retirement, but I think I'm dreading it - CBC.ca - October 2nd, 2022 [October 2nd, 2022]
- International Coffee Day 2022: How The Beloved Brew Helps Fight Cancer, Kidney Disease And Depression - ABP Live - October 2nd, 2022 [October 2nd, 2022]
- Corey Feldman And Jamison Newlander Talk The Lost Boys And The Birth Of The Two Coreys - Forbes - October 2nd, 2022 [October 2nd, 2022]
- Proven Levels of Human Longevity | NextBigFuture.com - September 11th, 2022 [September 11th, 2022]
- Prolonging healthspan by delaying ageing -- NUHS opens Singapore's first Centre for Healthy Longevity to increase healthy lifespan of Singapore... - September 11th, 2022 [September 11th, 2022]
- What is the Secret to Longevity in Real Estate? - CandysDirt.com - Candy's Dirt - September 11th, 2022 [September 11th, 2022]
- Jeff Stukey & Jay Olshansky, Ph.D with Wealthspan Advisors, Interviewed on the Influential Entrepreneurs Podcast Discussing How Aging Science... - September 11th, 2022 [September 11th, 2022]
- The Queen of the World - The Atlantic - September 11th, 2022 [September 11th, 2022]
- THR Icon: At 100, Norman Lear Looks Back (And Ahead) at Whats Changed Since the Maude Abortion Episode - Hollywood Reporter - September 11th, 2022 [September 11th, 2022]
- TIFF 2022: The Colour of Ink Review - ThatShelf.com - September 11th, 2022 [September 11th, 2022]
- Should Age Be on the Ballot? - Next Avenue - September 11th, 2022 [September 11th, 2022]
- Was The Spring Water At Balmoral Castle The Secret To Elizabeth II's Longevity? - Nation World News - September 11th, 2022 [September 11th, 2022]
- A complete guide to the health benefits of nuts europeantimes.news - The European Times - September 11th, 2022 [September 11th, 2022]
- Debut Launches its Bio2Consumer Platform to Become the Leader in Vertically Integrated Synthetic Biology - PR Web - September 11th, 2022 [September 11th, 2022]
- Rapamycin Drug Used in Cancer Therapy Found to Increase Human Lifespan [Study] - Nature World News - August 30th, 2022 [August 30th, 2022]
- Eating Healthy: Why Eating Grapes Would Increase Lifespan | The Guardian Nigeria News - Nigeria and World News Guardian Life The Guardian Nigeria... - August 30th, 2022 [August 30th, 2022]
- Beauty Bets on Longevity WWD - WWD - August 30th, 2022 [August 30th, 2022]
- Analysis of the impact of success on three dimensions of sustainability in 173 countries | Scientific Reports - Nature.com - August 30th, 2022 [August 30th, 2022]
- You might have glowing skin in no time by making few easy changes to your skincare routine - TDPel Media - August 30th, 2022 [August 30th, 2022]
- Nucleai Appoints New Head of Pathology to Support Expansion in Biopharmaceutical and Clinical Markets - Business Wire - August 8th, 2022 [August 8th, 2022]
- Daily AI Roundup: Biggest Machine Learning, Robotic And Automation Updates - AiThority - August 8th, 2022 [August 8th, 2022]
- Prolonged and intense heatwave affecting parts of western and northern Europe breaks temperature records; globally, July 2022 was one of three warmest... - August 8th, 2022 [August 8th, 2022]
- YLEM: Augmenting sustainable futures through material exploration and testing - STIRworld - August 8th, 2022 [August 8th, 2022]
- Do you want to live forever? Big Tech and the quest for eternal youth - The New Statesman - August 6th, 2022 [August 6th, 2022]
- This startup wants to copy you into an embryo for organ harvesting - MIT Technology Review - August 6th, 2022 [August 6th, 2022]
- Renewal Bio Acquires Breakthrough Stem Cell Technology With Applications in Infertility and Longevity - Benzinga - August 6th, 2022 [August 6th, 2022]
- Get married or get a degree to live longer says study, debunking theories of womens longevity over men - Times Now - August 6th, 2022 [August 6th, 2022]
- Nucleai Appoints New Head of Pathology to Support Expansion in Biopharmaceutical and Clinical Markets - StreetInsider.com - August 6th, 2022 [August 6th, 2022]
- Some species are immortal but dying of old age is humanity's secret weapon - The Telegraph - August 6th, 2022 [August 6th, 2022]
- Opinion: Changing When and How Much We Eat May Extend Health Span - The Scientist - August 6th, 2022 [August 6th, 2022]
- Vieroots uses genome testing to win over a growing tribe of wellness enthusiasts - YourStory - August 6th, 2022 [August 6th, 2022]
- Herbs radiate and give you youthful skin - The Hans India - August 6th, 2022 [August 6th, 2022]
- How Pop Culture, Politics, Science, and Business Got So Old - The Atlantic - August 6th, 2022 [August 6th, 2022]
- John Hood: How to read this column | Columnists | journalnow.com - Winston-Salem Journal - August 6th, 2022 [August 6th, 2022]
- How Long Is The Human Lifespan? Here's What Studies Have Found | mindbodygreen - mindbodygreen - July 31st, 2022 [July 31st, 2022]
- Employees are livingand workinglonger. CEOs are introducing initiatives like phased retirements to harness the longevity economy - Fortune - July 31st, 2022 [July 31st, 2022]
- Why Do We Get Old, and Can Aging Be Reversed? - Quanta Magazine - July 31st, 2022 [July 31st, 2022]