Financial Institutions are challenged
The COVID-19 outbreak has disrupted life and financial delivery around the world. Financial institutions the world over are concerned about economic stagflation or downtrend. Lending value chains are challenged like never before and, more significantly, the most vulnerable segments of the population. The MSMEs, small businesses, the microfinance sector, rural and urban poor, and the forcibly displaced persons bear the pandemic's brunt.
The policy responses from the central bank, regulators, and industry fraternity aids in mitigating the effects of COVID-19 on financial inclusion and disconnect. Financial institutions are recognizing the perks of cutting-edge tools in delivering personalized experiences to their customers. It sharpened the saw for Know Your Customers, identity verification, high-tech low-touch models to evolve, and a slew of ethical collections improvements. Financial institutions have responded well so far and are increasingly innovating and, at the same time, building a business model that is resilient and shock-proof.
Practitioners questioned themselves deeply, for instance, pondering how the joint liability would be interpreted post-COVID. Targeted policies, alternative data insights, and inclusive digital onboarding are evolving. On the servicing end of the spectrum, accelerated digital payments adoption rose to new levels breaking conservativeness.
Mitigation measures we deployed
- Opt-in for borrowers and extensive campaigns to stay in touch.
- A plethora of digital repayment options and inclusion of payment gateways.
- Bulk reschedule custom-designed for each client per their specification.
- Post the accrual entries on-demand and readjustments.
- Bulk moratorium application per regulatory guidelines.
- Moratorium provisioning measures.
- Newly introduced Reschedule Reason Codes and audit trails.
- Interest grace.
- Discretionary waivers.
- Schedule and DPD recomputation.
- Collection sheet improvements.
- Bulk Reschedule API's.
- Interest capitalization where allowed.
- Special high-availability, high-speed infrastructure to run these transactions.
Navigating towards New Normal and Resilient Future
Finflux did its part to a greater good. The below set of mitigation measures helped our customers and customer's customer. While we continue this journey, we get stronger and support the strategic initiatives and promptly comply with the regulatory norms as we hear from our clients. We assist them with their internal strategic goals regarding funds management, reapportioning, supporting remote working with enhanced security, new data reports, and insights, to state a few. It's the new normal and hoping for a better world and revival. Times that we need to be coherent, meaningful, and compassionate.