At the peak of the crisis, the focus was on governments, central banks and commercial banks collaborating to help businesses get back on their feet. But as we move forward, the role of banks will become more critical. Institutions that take an innovative approach can leverage their unique position at the center of financial flows. For example, by using advanced risk management and analytical capabilities, banks can help companies see their data in new ways – spotting anomalies and uncovering patterns that affect their business. They can build integrated ecosystems of trusted providers to connect clients and foster growth opportunities. Or use their position and networks to help clients access sophisticated treasury, legal and risk management services or track and deliver against their sustainability goals.
Leading recovery can also restore trust in the financial sector
EY predicts we can expect a slow-paced, uneven economic recovery from COVID-19 with varying rates of growth for sectors and geographies, and periods of acceleration offset by setbacks. With the EY Future Consumer Index revealing the fragility of many individuals’ and businesses’ finances, it’s clear that surviving the prolonged downturn ahead will require significant support. Banks have an opportunity to step up and lead this recovery, through encouraging financial well-being and using innovation to help businesses get back on track. In doing so, banks can not only play their part in driving our economic recovery but also restore trust in the sector and help build a better working world.
Summary
The EY Future Consumer Index reveals COVID-19’s impact on the finances of individuals and businesses. With a prolonged period of recovery ahead, banks have a role to play in getting customers and the economy back on track. Supporting individuals through personalized, flexible products and services can boost confidence and improve customer loyalty. Helping businesses, particularly those in heavily impacted sectors, return to growth will require more innovative assistance including building networks and using data to uncover insights. Banks that take the lead now can drive economic recovery while building their own resilience and restoring trust in the financial sector.