It’s clear that the country is facing one of our most challenging economic times. Lockdown meant many businesses were unable to operate. Now as we return to normality and businesses begin to reopen, there remains the added challenge of consumer confidence in visiting stores, and spending. The Office for Budget Responsibility (OBR) has warned the coronavirus pandemic could see the economy shrink significantly over the coming months.
While much of this should be a temporary shock, the outbreak has the potential to make a broad and severe impact on the UK economy. The Government has taken unprecedented measures to alleviate this, including furloughing, CBILS (Coronavirus Business Interruption Loan Scheme), Bounce Back Loan Scheme (BBLS) and Future Fund. But much will depend on how quickly the virus is contained and how long it takes before normality, even in a new sense, is resumed.
As a lender, you will need to balance the fair treatment of customers with the mitigation of a significantly increased risk in your portfolio.
You’ll need fast and reliable onboarding processes to deal with the rising number of applications for financial support; insight into what’s changing at portfolio and account levels; greater awareness of fraud; and a robust collections process.You may even need to adapt your business model to navigate the changing needs of your customers.
This guide looks at the challenges you’re facing and shows you how Experian’s breadth of data and innovative capability suite mean we are perfectly placed to help you. Not only during the current crisis, but also as a key partner to support your ongoing success once the situation starts to resolve.
Explored in this paper:
- The economic impact of Covid-19
- What does this mean for your portfolio
- An increase in demand for credit from SMEs
- Changing risk profiles across your portfolio
- Managing risk: what you can do
- Recognising fraud: what you can do
- Effective collections: what you can do