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COVID-19: Navigating the impact on commercial banking

April 14, 2020

In brief

Four key ways to manage now

Enable clients to maintain operations

Much higher demand for new or modified business credit is putting great strain on many banks’ lending operations, particularly as banks themselves work in new ways in the COVID-19 era. To free up the constraints and add agility, banks should draw on technology and process innovation to:

  • Create a fully integrated command center as the single point of coordination of the bank’s crisis-related action
  • Build a scalable capability where customers may more easily and quickly access funding

Help businesses access financial support

Small and mid-sized businesses may need the most help to lower costs, ease debt obligations, maintain working capital and stabilize supply chains. Banks can help by:

  • Extending leniencies, such as moratoriums on funded facility repayment
  • Offering customer-specific products, such as discounts, waivers and business interruption insurance
  • Providing digital loans
  • Strategizing on new business opportunities and value propositions

Digitize commercial banking offerings and automate processes

The health crisis is compelling many businesses, and thus commercial banks too, to move more of their banking interactions from "assisted" channels to digital offerings. Both can reap cost and productivity benefits in the short and long term, if banks manage to:

  • Map changes to the customer journey to existing digital offerings, using what’s already in place (even on the retail side of the bank) and shoring up any gaps
  • Establish a technology steering team to take technology-enabling actions and integrate with broader IT
  • Partner with others to quickly get digital credit origination running at scale

Proactively monitor portfolios to shield credit quality

While making access to credit simpler and adhering to governments’ credit mandates, banks can look out for their business customers and themselves by keeping close tabs on the health of credit portfolios. Key actions to take now:

  • Segment and identify loans based on their future credit risk to better manage them
  • Create a digital place for businesses to get quick answers and solutions
  • Embed data and analytics tools and AI into credit portfolio management functions

Coronavirus & commercial banking: emerge stronger

Contact us

Jared Rorrer

Managing Director – Global Commercial Banking Lead

Chris Jaggard

Managing Director – Commercial Banking Lead, Accenture Australia & New Zealand

Mahendra Kasula

Director – Corporate Banking and Innovation Lead, South East Asia
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