The economic repercussions of the coronavirus pandemic may allude to some similarities to the global financial crisis of 2007–2008 but its impact on financial sector’s performance is likely to be different. Here’s entrepreneur Nes Velazquez exploring COVID-19’s impact across the financial services industry to help leaders find the right way forward. Let’s delve.
To begin with, Nes Velazquez points out to the stressful times the US mortgage industry is going through after a period of relative tranquility. The pandemic has severely blunted the economy and unemployment has reached unprecedented levels of crisis. This has been catching up with many households who are struggling to keep up with their mortgage payments. Though it reminds of the 2007–2008 global financial crisis, there are a few major differences, says Nes. For instance, the American government, this time around, has taken prompt actions to help assuage the initial blows of the coronavirus pandemic on the borrowers. The Coronavirus Aid, Relief, for example, enables more than 68% of house owners who have taken federal loans to benefit from relief options.
Now, let’s come to terms with COVID-19’s impact on the banking and capital markets industry. Nes brings to fore a very important aspect of successful crisis management – communication. For financial organizations and capital market firms, this is considered to be highly important because the very relationship between these finance-oriented companies and clients is based on trust and reputation. So, Nes shares, the financial institutions need to communicate the following during these challenging times-
- Keep the regulators informed about the status of capital and liquidity – whether the standards are appropriate, or not; whether risk management process is effectual, or not.
- Assure the retail and corporate clients that their financial institutions are robust and stable — even if their own balance sheet shows a scary picture.
- Inform their employees about personal safety norms and how their activities may change.
During these challenging times, Nes asserts that it is all the more important that all (especially the experts in this domain) share their insights and experience which would help each other to contain and alleviate the effects of the pandemic on the financial sector and the larger economy.
Nes Velazquez educates people on financial literacy. He brought a new wave in the way the Foreign Exchange Market works with his pioneering Binary Options trading strategies. Given his experience and credibility, Nes’s advice is well worth considering.