Biggest Non-Medical Customer Impacts from the Pandemic
While the non-medical impacts on bank customers have ranged from technical issues to servicing customer remotely to increased demands on cash in some areas, the biggest impact from bank respondents has been on loans, and those are expected to increase over the next 30 days.
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The number one non-medical customer impact perceived by banks today is customers having financial difficulties making existing loan payments, as reported by 37% of respondents. That is expected to continue to be the biggest impact over the next 30 days of respondents by 53% of respondents
While just 5% of respondents said that financial need for new loans was the biggest impact today, 26% say that will be the biggest impact over the next 30 days. Based on other anecdotal evidence, we think that will be a huge impact on banks now that the CARES (Coronavirus Aid, Relief, and Economic Security) Act as passed into law last Friday.
Today the U.S. Treasury Department issued some guidance on the program for both borrowers and banks, and said that small businesses and sole proprietorships can apply beginning this Friday, April 3, and that independent contractors and self-employed individuals can apply starting April 10. Many questions remain, and many banks are scrambling to be able to take applications on the program as they anticipate massive volume.