PAYMENT SOLUTIONS
“ This meant a sudden shift for banks to move to digital channels / methods for not only making important credit decisions but also performing all service interactions .”
Mukherjee points out that the role of the RM also changed significantly not only in the way they interacted with their customers but also how they worked with the different internal teams ( credit / operations ) to effectively service client needs . He points out , “ It also meant changes to bank processes in areas like risk where models had to be updated quickly to take into consideration the huge burden the pandemic placed on certain businesses .”
And as solutions have become digitally enhanced and more services are available digitally than ever before , some experts say the economic climate and fallout of the past two years has resulted in more traditional lenders exercising reticence towards their customers . Ian Duffy , CEO of invoice financing firm Accelerated Payments , confirms , " Traditional lenders have become even more conservative
“ This meant a sudden shift for banks to move to digital channels ”
SUDEEPTO MUKHERJEE HEAD OF BANKING , PUBLICIS SAPIENT
and risk-averse , and they are more constrained from a credit perspective as well to help companies that need it the most .”
More stringent loan parameters So , despite the explosion of BNPL-style financing , obtaining a loan is more challenging for customers than ever . He explains , " The space has become more difficult for customers to get access to liquidity . Getting assistance from banks was already tough for most businesses as they just aren ’ t big enough to appeal from a lending and investment perspective , and banks usually prioritise loans ( now in some instances with a government guarantee ) for companies that are a better credit risk .”
Duffy says this disqualifies many businesses which , for various reasons including the COVID pandemic , have suboptimum credit risk profiles . “ There ’ s other alternative lenders or credit brokers , but you have to watch out for additional requirements ( such as personal guarantees ) and borrowing limits – and a lot of companies aren ’ t necessarily protected if things don ’ t work out .”