Looking ahead: the digital silver lining

  • Print

Much has been said and written about the Coronavirus and its global impact.  The new world order of social distancing and the touch-me-not code of conduct has also brought significant changes to the way services are rendered and consumed. The lock-down has a direct impact on the supply chain, and reduced consumption will have a substantial bearing on the cashflows of most industry players, and therefore, their repayment abilities. Which also implies that NPA and provision levels are bound to rise, directly impacting the bottom lines of banks. The steep fall in banking stocks around the world is testimony to that. So, what can banks really do?

Even from a preliminary outlook, there may be a definitive opportunity for banks to turn around and make a rapid adoption of the ‘digital mantra’ that seems to be the panacea to all the above perils. The implications are quite obvious: beyond the immediate business continuity planning (BCP) and the project portfolio prioritisation that is keeping most technology functions busy around the world, there may be some important short to medium term initiatives that banks would need to adopt. These include opportunities that may make the most of this “black swan” event, where both the business and the operating model has the opportunity to make a permanent shift into the digital mainstream.

There are 3 key areas that banks may need to explore as part of the digital value-chain, from the standpoint of this quick shift into the digital mainstream:

Enjoying the article? Get the complete thought leadership article on 'Looking ahead: the digital silver lining' in your inbox.