The Impact of Coronavirus on Financial Services

 

 

Digital Engagement Lessons Learned from COVID-19
 

Author: Emmett Higdon
Practice Area: Digital Strategy & Experience

Response to the COVID-19 pandemic created a customer service crisis in banking: Branches were closed, call centers were jammed, and websites were overwhelmed with traffic. That meant that FIs could not easily meet the enormous volume of customer service requests. The failure of the customer service status quo and the specific demands precipitated by the crisis, though, led some FIs to quickly innovate through their digital channels.







 

How COVID-19 Opens the Door to Video Banking
 

Author: Emmett Higdon
Practice Area: Digital Strategy & Experience


COVID-19 lockdowns have led consumers to search for alternatives to face-to-face interactions for different needs. For the first time, many have turned to video meetings for a range of tasks, including work meetings, calls with friends and family, or medical “e-visits.” Amid pandemic-driven changes to routine, consumers are now broadly familiar with video conferencing: 84% have used it before or during the pandemic, according to recent Javelin research.





How Servicers Should Prepare for the End of COVID-19 Forbearances


Author: Austin Kilgore
Practice Area: Digital Lending


More than 4 million mortgage borrowers have obtained forbearances since the federal CARES Act was passed to provide economic relief due to the COVID-19 pandemic. At approximately 8.53% of total servicing volume, the rate of mortgages in forbearance is rapidly approaching the peak delinquency rate of 10.06% reached during the first quarter of 2010.





The Paycheck Protection Program Is an Urgent Challenge and Opportunity for Lenders


Author: Ian Benton
Practice Area: Small Business Banking

Signed into law on March 27 as a key element of the CARES Act, the PPP acts as an emergency call to action for banks, credit unions, vendors, fintechs, and Silicon Valley companies to do their part in ensuring the survival of the American Main Street. The financial services players that act swiftly and wisely to help their clients weather the economic crisis stand to reap the benefits of long-term good will and strong customer loyalty. Those that stumble face far-reaching consequences – client business failures, mass customer flight, media ire, and regulatory scrutiny. And as businesses and self-employed individuals scramble to find a loan provider, opportunities abound for companies to creatively position themselves to serve new customers.





Coronavirus Refi Boom Exposes Gaps in Mortgage Automation


Author: Austin Kilgore
Practice Area: Digital Lending

Mortgage rates at all-time lows, but the industry’s lack of back-office automation and overreliance on human labor means lenders are leaving money on the table because they’re unable to fully capitalize on the refi boom that’s emerged during the COVID-19 pandemic. This Impact Note explores the unique challenges facing lenders and offers recommendations for navigating these extraordinary circumstances.






Payment Strategy Implications in a Pandemic
 

Author: Rachel Huber
Practice Area: Payments

The current global pandemic is completely uncharted territory for everyone. Both consumers and businesses are looking for answers to ‘what’s next?’ and ‘how do we navigate through this?’ While there are still a lot of unknowns, that cannot equal inaction now. To help our clients manage this new reality and help their customers through this unprecedented situation, we have released a new impact note - Payment Strategy Implications in a Pandemic – detailing the challenges the payments industry is going to face and strategies to help weather this increasingly complex environment.

https://www.javelinstrategy.com/coverage-area/payment-strategy-implications-pandemic





Pandemic Response: Remote Work Can Tip the Scale of Vulnerability
 

Authors: Mathieu Auger-Perreault & John Buzzard
Practice Area: Cybersecurity

COVID-19 has triggered an international response that is unprecedented in terms of how enterprises engage during a pandemic. Until recently, such an event was largely a fictional exercise of documenting what might occur and business continuity impacts. Unfortunately, cybercriminals are looking to profit from the current pandemic, with the potential of overloading security teams that were already operating at maximum capacity. In this impact note, Javelin looks at the risks, threats and opportunities related to a large work-from-home workforce and the need, more than ever, for organizations to focus on insider risk.






 

Fintech in Extraordinary Times


Presenter: Jacob Jegher

Finovate Expert Analysis on COVID-19, a Recession, and the Fintech Ecosystem with host Greg Palmer and guest Jacob Jegher.







 

Surging Digital Demand: Turning Interest into Adoption 


Presenters: Jacob Jegher, Emmett Higdon

Consumer access to traditional banking channels is being severely constrained. Shelter-in-place mandates are driving homebound consumers online in record numbers as they seek advice on how to adjust to rapidly changing financial situations. While two-thirds of consumers already turn to digital banking for balances and recent transactions, a protracted period of digital-only access will likely send them in search of deeper capabilities, including P2P payments, mobile check deposits, and real-time customer service responses through chat, video, and more. Javelin explores how top banks are responding, and provides recommendations on maximizing digital channel adoption and use.





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