The Coronavirus pandemic has taken a great toll on the majority of consumers’ finances and economies around the globe. The Government, finance regulators along with banks have put forward efforts to help customers in managing financial difficulties during this unprecedented event.
How Financial Institutions Respond to Global Pandemic
The World Bank Group has quickly responded to the pandemic by launching emergency financial support to help countries about their business operations and help bolster economies. They will be releasing $160 billion to the most impoverished and most vulnerable countries that have been hit severely by the pandemic.
Financial institutions like banks have expanded their lending and help
consumers during this financial crisis with the following measures:
· interest-free overdrafts for three months
· repayment holidays for loans and credit cards
· no charge for credit card late payments
· application to increase the credit limit
· lower interest rates, as low as 0.1%
Thinking about Remortgaging? This is the Best Time!
Due to lower interest rates relief offered by banks during the pandemic, many people have considered remortgaging. While there are fewer mortgage deals in the present market as banks have pulled some mortgage products, lower rates will be offered to lenders. It should be mentioned however that while the scheme is persuasive, banks need to perform some stress test of your finances to make sure that getting a mortgage is something you can afford, with respect to possible interest rise in the future.
Friendly Reminders from Banks
In efforts to mitigate the spread of the virus, banks encourage customers to utilize online and telephone banking instead of branch visit. Elderly, pregnant women and unwell people are strongly advised not to go to the branch to protect the employees and others. While digital platforms can be challenging to some, banks reassure consumers that they will get the information they need and will be guided throughout the process. Moreover, some banks continue to operate in restricted hours to deter the spread of the virus.
Bottom Line
Offering cheap and affordable credit is one way for financial institutions and banks to help support its people and economy. Banks are bridging financial gaps in this challenging period to assist consumers in their finances and help stabilize the economy. They are definitely buffering agents that have worked their efforts to help survive in another dramatic downturn in history.