Artesian Solutions and Baringa Partners COVID-19 Relationship Banking Exclusive: Leading lenders agree it will take 1-2 years to establish a stable “New Normal” and digital investment will be key to successful relationship banking in the post COVID-19 age
Artesian Solutions, a leading provider of client intelligence and risk solutions, and award winning management consultancy Baringa Partners, brought together 22 senior banking executives from across 12 of the UK’s leading banks to reflect and share their views on Relationship Banking during the coronavirus pandemic. The event uncovered significant consensus on the challenges facing banks, as well as the solutions, as banks adjust to the “new normal” of relationship banking in the COVID-19 era.
Responding to a series of surveys during the event, the key finding was that 70% of banking executives believe it will take 1-2 years before we get to a stable “new normal”, as clients and banks alike are pulled in many different directions, wrestling with competing short and medium term priorities. Respondents agreed that the biggest challenge facing banks right now is how to help customers effectively amidst continued uncertainty – helping them tackle the dual challenges of conserving cash whilst keeping fluid enough to deal with immediate month-to-month survival.
However, despite this sobering agreement on the challenges facing both banks and their clients, the overall feeling of the group was one of optimism. Respondents agreed that the current crisis has provided a jolt into the next phase of banking’s digital future.
Speaking at the interactive event, Simon Bumfrey, Head of Relationship Banking (Europe) at Silicon Valley Bank, explained why: “Whilst banks have taken a beating in the court of public opinion, in reality when any business faces financial challenges or opportunities, their first port of call for support, advice and guidance is usually their bank. Relationship banking will remain important, as relationships forged over time are strengthened in times of crisis. A key differentiator for banks in the post COVID-19 era will be how they harness technological innovation to enhance their services, capabilities and productivity to drive value for customers and increase capacity for true relationship banking.”
Echoing Simon’s views, Andrew Yates, CEO at Artesian, summarised the event, saying: “Banking leaders are once again facing the prospect of a very different business landscape. It may take many months or even years to establish the “new normal”. As a “wartime CEO” in a technology company serving most of the banking frontline, our job is to assist them in embracing digital advantage in the post COVID-19 world, with the thoughtful use of applied innovation. Our mission is to help them improve productivity whilst at the same time get closer to customers, build a deeper understanding of customer ecosystems and ensure that, thanks to advanced intelligence and insight, every customer engagement or communication counts. In the words of Andressen Horowitz, I urge banks to focus on what they can do today to be better off tomorrow.”
In conclusion, Simon Wagnitz, Senior Manager at Baringa Partners, commented: “The COVID-19 crisis is demonstrating that Relationship Bankers can provide a personal service to clients remotely. The current challenge will further enhance digital change and increase the pressure on banks to adapt their operating models. With the thoughtful application of lessons learnt, banks will not only weather the current crisis and respond to the needs of vulnerable customers today, but will realise radical new capabilities and opportunities to enhance relationship banking for the future.”
For more information and deeper insight into the findings from this event please visit the Artesian website