Conclusion

In summary, deploying initiatives across multiple functional areas can help financial institutions protect existing business and drive profitable growth

Goals and aspirations (GA)

• Conduct monthly/ quarterly scenario-led planning exercises. • Continuously track key leading indicators for the early identification of the scenario that eventually plays out. • Geographies, sectors, and segments - Review and manage current portfolio risks. - Diversify into select high-affinity areas. • Asset products - Customise existing products based on COVID-19 specific needs of customers. - Deploy innovative products such as ecosystem financing, hyper customised products, etc. • Liability products - Protect the liability base by providing value-added service and delivering targeted product innovations. • Digital platforms:

Increase contactless banking adoption through doorbanking, robust digital channels, and repurposing ATMs. • Collections management:

Enhance collections efficiency through ecosystem partnerships, and analytics-led models. • Liquidity management: Ensure adequate liquidity through rigorous stress testing and labilities diversification. • Risk assessment:

Strengthen risk models using alternative data sources. • Inorganic growth:

Explore potential mergers and acquisitions for rapid capability building. • Technology:

Strengthen IT infrastructure using cloud-based technologies to enable remote operations, social distancing, and innovative offerings. • People: Focus on enhancing people agility, well-being, productivity, and leadership resilience, as well as workforce reskilling and redeployment.

B

Where to play (WTP)

C

How to win (HTW)

D

Assets and capabilities required (AC)

As an immediate priority, financial institutions could focus on collections and risk management, digitisation, and recovery team deployment to kick-start the recovery.

Transform collections and risk management

• Address the impact of moratorium and challenges around physical collections operations, using innovative business models and partnerships. • Revise existing risk assessment models and parameters, augmented by alternative data sources, to adapt to the rapidly evolving business environment. Set-up COVID-19 recovery and growth office

• Build a cross-functional

COVID-19 core team reporting directly to the

CEO/management committee. This team will take up the following tasks: - Evaluate a changing situation and emerging scenarios based on lead indicators.

Drive exponential virtualisation and digitisation

• Virtualise select functions (e.g., call centre) and increase the use of the work from home option with the help of cloud-based systems, ensuring seamless connectivity and data security. • Strengthen digital channels to adhere to social distancing norms and adapt to preference for contactless banking. - Work with business/functional leadership to rollout and monitor initiatives.

- Set-up weekly cadence to update and seek guidance from the management.