Yesterday, in the first of a two-part series of articles, we discussed the shifts customers have made due to the crisis, and which of those shifts are likely to stay. Today, we look at the institution side of things. Read Article: https://www.pcbb.com/bid/2020/04/30

Social media may not be top of mind right now, but it can be a useful communication channel for your business customers. We look at a few effective ways to use it during the current pandemic in today's BID article. Read Article: https://www.pcbb.com/bid/2020/04/24

During this pandemic, the communication focus has been immediate, urgent and short. But, as things start leveling off a bit, communications will change too. We offer thoughts on transitioning communications from crisis-mode back to customer management-mode. Read Article: https://www.pcbb.com/bid/2020/04/17

Are you experiencing an increase in the number of questions from your customers?

As the banking world is forced to face the sobering realities of COVID-19, banks and credit unions need to rely on their digital channels more than ever. This includes not only the transactional tools such as online and mobile banking, but the tools needed to deliver support and service across your digital channels. As your teams are forced to go remote, the number of technology related questions and basic day-to-day questions is only increasing.

Join us March 25th at 2PM ET to learn How to Provide the Best Digital Support as Banking Customers Shift to Digital amid COVID-19. Our experts will outline steps you can take now to deliver the digital support your banking community needs in the short and long run.
Register Now

Can't make it? Register and we will send you a copy of the recording after the webinar!    

Hi CBANC community! I wanted to share some market insight we received from our banking partner, Barclays. Just one opinion and obviously there's still a lot left to unfold but figured I'd share! Doc attached for download as well. 

Brief summary of the Barclays coronavirus client call on Friday:

Macroeconomic

• Significant reduction in global growth prospects for H1 expected, with impact greatest in particularly vulnerable regions (China, Japan, South Korea, Europe)
• Most impacted parts of the economy include the travel sector, commodities (particularly oil) and SMEs
• Ongoing uncertainty about outlook beyond H1, driven largely by uncertain public health forecast and effectiveness of virus containment and economic measures
• Coordination of monetary and fiscal policy to respond to the crisis is not only encouraged, but also expected (i.e. “baked into” market expectations) – as a result, expect little impact when it does occur but significant adverse impact when it doesn’t (see market response to ECB not reducing rates last week)

Banking system resilience

• Banking system is more resilient to respond to a credit crunch due to reforms on bank capital and liquidity requirements put in place in response to the Global Financial Crisis
• As a result, risk of systemic failure emanating from the financial system have reduced (but not disappeared)
• Trading floors globally have not been stress tested to a scenario where everyone has to work from home to date; however, in Asia there have been contingency measures in place for the past 4-6 weeks requiring staff to work from multiple locations, with little to no impact on functioning of global capital markets 

Capital markets

• Turbulent forecast even prior to coronavirus, due to unstable US/China trade outlook and Brexit
• In moments of market uncertainty, there is typically a shift towards “save haven” assets (e.g. USD, JPY, gold). However, what we have seen over the past 1-2 weeks is a flight to liquidity (even gold price declined) as institutional investors engage in broad liquidation of their positions in an attempt to manage risk
• In FX markets:
  • Volatility is back both among G10 and especially emerging markets currencies
  • Emerging markets liquidity has deteriorated over the past 1-2 weeks, trades executed at wider spreads
  • G10 liquidity has been more stable with lower impact on spreads (impact particularly felt on forwards)
• Last week capped the most turbulent stretch since 2008

Trade

• Barclays do not currently see any extraordinary requests about additional working capital – utilisation levels in line with expectations
• Feedback from corporate clients as follows: (i) lower stock and inventory levels, (ii) lower orders and production levels, (iii) cutbacks in production days, (iv) difficulty in finding additional suppliers to reduce their concentration risk
• Sporadic but patchy reports that Chinese production is starting to come back to normal; however, these improvements likely to be offset by disturbances to both demand and supply in Western economies that are undergoing lockdowns
• As this becomes a demand problem, quality of debtors becomes important – likely to result in working capital issues