In June 2020 we asked Qarar’s clients to contribute to an informal survey – the purpose being to identify the patterns of change in banking strategy and operations due to the COVID-19 pandemic that has dominated 2020. We also wanted to gauge the level of optimism – that banks believe they can successfully ‘get back on track’.
Our interconnectivity and modes of communication have undergone a huge transformation on a global scale. The way we do business may never be the same again. With the downward pressure of economic challenges the banking sector has had to shoulder much of this change.
So how has COVID-19 affected banks in the region? Based on Qarar’s indepth understanding of credit risk management we posed 10 key questions …
- When do banks expect to fully recover from the impact of COVID-19?
- When do banks expect to resume full operations?
- Which personal finance products are expected to be most impacted by COVID-19?
- What percentage of the consumer portfolio needed some form of relief measures?
- Which credit risk-related areas are of the most concern?
- Which areas of credit risk are being strengthened to counter the effects of COVID-19
- How do banks plan to tackle the expected increase in collections activity?
- How ready are banks for digital banking?
- How are banks offering forbearance plans to customers?
- After COVID-19 which areas of retail banking are expected to go though a permanent change?
Over the past couple of weeks we have shared a few snippets of the survey results on Qarar’s LinkedIn page. Now we are revealing the full results in the video below exclusively on our blog.
A quick snapshot of the feedback reveals the key priorities include a pragmatic approach to collections, effective credit risk management and a greater focus on rolling out digital banking services. The Qarar team is currently reviewing the survey results and feedback, and will be sharing some of the best practice solutions that will help banks ‘get back on track’.
The COVID-19 pandemic has thrown down the gauntlet and forced every business to look inward and reinvent itself; to be customer-centric and fully embrace digital communication channels. How every bank reacts right now will shape its future success.