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Rajesh Ramar

Consulting Partner, Industry Advisory Group, Banking, Financial Services and Insurance, TCS

Evaluating COVID-19 impact on credit and defining a strategic response 

The impact of COVID-19 on retail banking, especially lending and credit, has been significant. Supply chain disruptions, falling demand, loss of income, and operational shutdowns are resulting in cash flow and other credit problems. Lending and credit management has assumed special significance in the wake of the crisis as businesses look to their banks for help. To efficiently manage the impact of Novel Coronavirus on lending, banks must define a strategy covering three time horizons:

  • Immediate-term – take advantage of reduced interest rates and stimulus packages to help retail and business customers
  • Short-term – ramp up digital capabilities and rapidly roll out self-service channels to service credit requests
  • Medium-term – build sustainable business models and design customized products to fund sustainable businesses

In addition, banks can undertake market interventions that go beyond the lending function to speed up economic recovery post the pandemic, which in turn will help contain the impact of Novel Coronavirus on lending and credit.