The response to the coronavirus (COVID-19) pandemic is evolving quickly. Globally, the initial few weeks have seen businesses concentrate on safeguarding employees and maintaining business as usual – and rightly so. Now, as many governments start to consider easing lockdown rules, how long the crisis will last remains unknown. There’s no doubt that the weeks and months ahead will bring further challenges, and the priority for businesses across all industries will be ensuring they can ride out the impact.
To help provide cash to the businesses that need it efficiently and quickly, lenders must have an integrated and streamlined application process in place. Here are three critical steps that will help lenders consider how to support businesses and shore up defenses for future growth:
1. Understand your existing ability to support customers and the broader business community
In the UK, North America, and Australia, government COVID loan schemes have come under criticism, mainly for their complex application processes and the slow deployment of funds.
To save struggling SMEs from insolvency, lenders everywhere need to collaborate with governments and find ways to quickly onboard and originate COVID-related loans. As a lender, you should examine your ability to respond rapidly to COVID loan applicants and take the necessary steps to upgrade systems and processes to ensure you can approve applications and process loan payments efficiently.
2. Manage communications and stakeholders (internal and external)
Successfully navigating the COVID-19 crisis isn’t just about decisive action. Clear and consistent communication with customers, staff, suppliers, and others is critical during times like this.
3. Future-proof against uncertainty and risk of any magnitude
It’s abundantly clear that operations and the infrastructure of all FIs, lenders included, should not only be robust, but also future-proofed to cope with uncertainty and increased risk. Leading out of this pandemic, it’s essential that lenders understand how they engage with their customers. Meeting face-to-face may be preferred, but increasingly remote, digital communications are dominating customer experiences. Lenders need to have the infrastructure to engage with customers and prospects safely and efficiently. The COVID-19 pandemic has amplified the need for a strong technology backbone that can withstand uncertainty of any magnitude. “Lenders need to take bold steps to transform how they work, now,” Q2 Cloud Lending VP of Product Taylor Adkins said. “This crisis has compressed the timeline within which lenders need to change their operating models. Digital automation is no longer a competitive advantage, it’s the only way to do business, particularly when faced with circumstances that are testing all of us.”
For more guidance around responding to this rapidly evolving situation please visit our business impacts of COVID-19 webpages:
UK Coronavirus Business Interruption Loan Scheme (CBILS)
North American PPP and SBA support
Australian Coronavirus Small and Medium Enterprise (SME) Guarantee Scheme
If you have any immediate questions, please get in touch.