UK businesses have been hit hard by the impact of Covid-19

Many are no longer operating anywhere near to capacity following the lockdown. We also know from our own economic analysis, that more than half of small businesses hold only enough cash to survive for a few months. Some sectors have been impacted more than others, for example accommodation and food services, recreation and non-essential retail. At the same time, the regions that rely most on those sectors are particularly vulnerable.

Right now, there are stark variations in the way commercial sectors and regions are affected and reacting. But no two lending portfolios will be impacted in the same way. Every business responds differently – some may have more cash reserves, while others may be far more adaptable.

The unprecedented volatility translates to a significant increase in risk for lenders – in terms of managing both existing portfolios and new credit applications. The key is understanding how the heightened risk will manifest itself – and how it can be mitigated.

Explored in this paper:

  • Real-time stress indicators drive speedy responses
  • Data and insight offer greater visibility
  • Categorisation engines drive customer insight
  • Seamless onboarding to better manage spikes in applications
  • Tracking stress amid the ‘New Normal’

Read our paper 'Polarisation in credit applications'