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6 Ways Lenders Manage Fallout From Covid-19

Are you doing everything your lending business needs to do to manage the fallout from Covid-19? The Coronavirus pandemic poses a fundamental threat to lending institutions, particularly in the Microfinance space. Are you behind your competitors in dealing with this crisis? Find out key strategies and tactics that you may have missed.

As an essential business, financial institutions need to make adjustments to their operations and communications is key.

1) Support Employees

  • Remember that this is a human crisis and we are all in it together
  • Implement work from home
  • Ensure strict health & hygiene workplace policies in keeping with government recommendations
  • Consider flexible work hours
  • Prepare employees for the possibility of reduced salaries or downsizing

2) Keep Customers Informed

  • Communicate with empathy
  • Look at offering deferrals/moratoriums, refinancing, waiving fees, credits, etc
  • Communicate any expected changes to your operations or services
  • Implement remote payment options
  • Ensure they know how best to reach your business

3) Reach Out to Suppliers

  • Find out about any changes that may impact your business
  • Discuss flexible payment terms
  • Evaluate your supply chain and take any necessary action to prevent disruption
  • Prepare back-up plans and suppliers

4) Focus on Business & Finances:

  • Collect as many outstanding receivables as possible
  • Preserve cash by cutting any unnecessary expenses
  • Ask your financial institutions for deferrals/moratoriums, refinancing, fee waivers, credits, early access to term deposits and working capital
  • Seek waivers or extensions on rent payments and health insurance premiums
  • Ensure your business is formally registered to access benefits that are or will become available

5) Accelerate Your Digital Transformation

IF NOT ALREADY ONLINE, GET ONLINE. Remember that COVID-19 has changed how people do business and this is unlikely to return to ‘normal’

  • Ensure your lending website is fully functional
  • Digitize and automate your business processes and activities so it can be handled online
  • Fully integrate your lending website and your lending software
  • Give employees access to service customers online
  • Encourage customers to do business with you from your website

6) PLAN, PLAN, PLAN

  • Review business operations and identify the processes and systems affected and how
  • Prioritize what needs to be done now to stabilize your lending business
  • Plan for the worst as well as the likely future case scenarios
  • Engage business partners and key stakeholders on expected changes
  • Dream big and invest in the future success of your lending business
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