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How financial service providers should rethink their businesses after COVID-19 pandemic

2 min read
The government released a raft of measures, in the fight against COVID-19, touching squarely on banks, micro-finance institutions and other service providers such as Saccos.

Coronavirus pandemic is not here to stay, it will go and businesses especially financial service providers should rethink over measures they will take to counter the tough economic times brought about by the disease.

The government released a raft of measures, in the fight against COVID-19, touching squarely on banks, micro-finance institutions and other service providers such as Saccos.

Among these measures are those that have hurt business operations, with others trying to make things work during this difficult times of the pandemic.

The most important step to look at once coronavirus is over, revolves around issues such as contractual part or non-performance. Business will, therefore, need to renegotiate contracts where operations went down during economic shut down.

Businesses will also be required to consider issues with staff terms renegotiation depending on the performance and how it was affected by the epidemic.

If a business did not capture risk management policy, the epidemic may serve a lesson for it to consider one. Risk management involves the identification of risks to the business and setting up mitigation strategies.

Workplace health

Many business across the world have been operating with ignorance to workplace health. After the epidemic, this will now be taken into consideration.

Technology

The pandemic has emphasized the need to incorporate technology in a number of business operations, which can facilitate e-business.

Through these, financial service providers have opted to using mobile banking services to reach to their customers, a move that will remain after the pandemic.

Part of the directives of the government to financial services, in the fight against coronavirus, is to facilitate cashless transactions to customers, minimizing cash.

Loans

The government also directed financial service providers to negotiate customers’ loan terms during the epidemic. This will mean that after Coronavirus is gone, business will have to adopt the model of extending loan terms, negotiating interest rates reconsidering defaulters before submitting their details to Credit Reference Bureaus (CRBs).

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