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COVID-19: A perspective on how the crisis is impacting financial services

A perspective on how the crisis is impacting financial

Richard Parsons discusses the challenges and opportunities the financial services sector has faced during the pandemic.

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“The financial services sector has understandably seen a rapid increase in new account openings and loan applications, with initiatives such as the Coronavirus Business Interruption Loan Scheme, bounce back loans and mortgage holidays being rolled out.”

In this video from our New Reality series, Richard Parsons, Associate Director, Managed Services, touches on the impact of COVID-19 on the financial services sector.

New challenges

Firms have faced several challenges due to the rapid increase in new accounts being opened and loan applications, resulting from schemes such as the Coronavirus Business Interruption Loan Scheme (CBILS), bounce back loans, and mortgage holidays. These include handling a backlog in applications, rolling out brand new processes at pace, and ensuring that efficient checks are in place to spot fraud.

Firms need to look at how they can alleviate the pressure of an increase in call volumes and a fall in headcount due to sickness absence, all while improving processes and customer experience.

“We’ve worked with clients over the past few months to develop virtual contact centres at scale and speed, mobilise specialist teams to deal with travel claims and complaints, and design and embed process driven solutions for taking on CBILS.”

Putting in place a robust end-to-end audit trail is imperative. The sector will face continued remediation challenges around debt management and insurance claims, as well as the potential for future industry-wide review regarding the handling of COVID-19.

Opportunities

There are also opportunities for financial services firms to focus on advancements post COVID-19. Taking advantage of tools, technology and data will help enhance decision making. It is also important to identify areas for automation, which will assist with clearing the backlog and ensuring that money is flowing to those who need it most.

Going forward the financial services sector will need to consider how it operates in a post-COVID world, while identifying how it can build operational resilience to thrive in the new reality.

Discover more of our insights around the fundamental importance of operational resilience.

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