What is Cryptocurrency A new word emerged in our lives two months after the beginning of the recession of 2008 and gradually transformed from a vague expression ("virtual coin") to the vocabulary used to characterize the new economy. On June 9, 2009 the first bitcoin was released by an anonymous person called Satoshi Nakamoto. For different reasons like the sub-prime crisis, Nakamoto, claimed he is a Japanese man in his 30's, said he gave the open protocol in 2007. Today the new coin is called a "Digital Asset" and decentralization is the principal idea behind it: there's no main institution responsible for regulating it. The most familiar and traded form of Blockchain's technology, Bitcoin, who has crossed the $15,000 lines way back and has shows an image of exponential increase in the past few months. The great advantage of blockchain technology is that it doesn't have to keep records for a large central computer or big managing company. With this ...
COVID-19
COVID-19 emerged as the century's black swan occurrence, with a significant macroeconomic effect in India and globally. The pandemic COVID-19 is a health and humanitarian crisis and an economic shock. Banks have a vital role to play. Although COVID-19 is expected to have an aggregate effect on credit growth in most industries, the magnitude and the nature of the effect may differ depending on the length and magnitude of the disruption.
In addition to the apparent reality of the pandemic that will assess the patience of managers in companies and place an overarching imperative to ensure the quality of operation, we can conclude that the short-term effect will affect four main areas of retail and commercial banking.
Credit Management
Many companies and firms would fail with the absence of demand leading to lower profits and layoffs of their employees. As borrowers struggle with scheduled interest and principal payments, this will result in an increased level of not-for-profit commercial and retail loans. However, it is important for banks to take measures to reduce this, help their customers thrive and potentially establish a stronger customer relationship:
• Support decisions of the government
• Initiate debt relief and modify services
• Get ready for losses
• Expand loan
• To control refinancing demand Digitize
Revenue Compression
The market value of the banking sector fell to a lower level in the first few weeks of the pandemic than in the 2008/2009 crisis. Because the market has contributed to the compression of short-term revenues from several sources, including:
• Reduced margins of interest
• Reduced revenue from payments
• Decrease in corporate finance and financial payments
Customer Service
A rapid change in customer service preferences will have a short-term effect on this pandemic. Although many bank branches are still open as a vital service, customers tend to run their financial lives increasingly through apps and online banking. How are banks expected to respond to this?
• Train and educate customers
• Reduce the possibility of physical infection
• Customize consumer advice
• Support virtual managers of SME relationships
• Digital advertising and operation acceleration
Cost Control and Innovation
The cumulative impact of these three points will result in short-term income and expenditure misalignment in the banking industry. From 50 to 100% PBT decline we expect a variety of impacts. Since the requirements over the next four to six months vary from those of six weeks ago, the banks should be as flexible as possible to respond:
• Consider the 'war room' tasks carefully
• Project Cost Review
• Flexibility with suppliers and vendors
• Invest in matters surviving the virus
Future of Banking after COVID-19
Although the coronavirus urgently needs digital banking services, the increasing preference of consumers for digital services is nothing new. Neither is their disappointment in trying to complete an online task in the fractured digital journeys they often encounter.
For a transaction from opening an account to applying for a loan, clients are no longer expected to pay a potentially stress-inducing visit to the physical industry.
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