World Health Organization declared an official flu-like pandemic as COVID-19.
UK banks plan to mitigate the virus’s financial impacts. The banking and financial industry faced a significant impact due to Covid-19. Precautionary measures like the Cancellation of Global Conferences, Travel bans caused internal disruption. Many banks, fintech, and techs have been working remotely for some time to eradicate the financial crisis. Some governments are trying to mitigate the effects of the outbreak by encouraging FinTech partnerships.
Alex Malyshev (CEO of SDK.finance) stated whether COVID-19 would affect banking and FinTech. He said: “Banks are likely to delay spending decisions to prepare for a possible downturn. This crisis gives opportunities to those who understand people’s needs and take leadership despite the risks.”
To prevent the spread of disease banks have resorted to quarantining and disinfecting physical bills. RBS was the first who announced its measures, which included mortgage and loan relief for three months. TSB is offering a two-month delay, while Barclays, Lloyds and Virgin Money will all negotiate relief on an individual basis.
Central banks around the world like The Federal Reserve, The Bank of England and other major banks have cut interest rates to help the markets and prevent a new global financial crisis. Commercial banks will see a drop in interest margins and reduced income from business clients and transaction fees as demand continues to shrink.
In addition to these, a few institutions have introduced funds for small businesses. NatWest will offer £5 billion to SMEs affected by a coronavirus, while Lloyds will chip in £2 billion.Credit card limits, cash withdrawals, and even dropped fees for missed payments have increased. They may offer some relief amid the crisis as these policies still need to be vetted for their impact on users’ credit ratings.