COVID-19 Drives Tech, Operational Changes
The COVID-19 outbreak has changed the landscape of pretty much everything. The economic impact, in particular, has been devastating, and there's a plethora of studies and researches estimating the ongoing damage. But one point of concern is that community banks and credit unions are facing some of the biggest challenges.
According to CBSI (Community Bank Sentiment Index), the business profitability and conditions are going to be significantly harder and worse in the future. It is due to the fact that an unprecedented number of organizations can’t continue their economic activities.
Community banking centers are taking necessary measures by offering a range of programs to help small businesses, and 79 percent of community lenders have already increased lending to farms and many small businesses. Moreover, in order to keep the operations more efficient and faster, lenders are also bringing operational changes.
Operational Changes
Other than increased lending, community bankers are taking additional measures to counter coronavirus effects. Here are some of the most impactful stats regarding community banks:
Tech Implementations
Health officials and other experts are encouraging remote work, and community banks are enhancing work from home facilities. It has enhanced and driven greater tech implementation, and most banks are working via technology to serve their clients. Their relationship managers and branch colleagues are always available to assist customers through video or phone calls. Many of the community banks are offering such services even after their working hours.
The online availability of the community banks’ representatives has increased loan closings from 6 percent to a whopping 20 percent. Additionally, the next 12 months’ offering of share planning has also jumped from 21 percent to 29 percent. Despite these facts, the number of online applications is still shy of targets. That’s because only 40 percent of the community banks are offering online facilities. However, an additional 29 percent of the banks are still planning to do the same in the coming year. Here are some of the stats regarding community banks on tech implementation:
Coronavirus will eventually end, and the economy will surely recover. We are all thankful for our local community banks and all they do for small businesses, farms, and consumers to fight against the devastation of COVID-19 and other disasters.
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https://www.csbs.org/newsroom/covid-19-and-value-community-banks