# How digital is guiding the finance sector’s response to COVID-19
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-05-15
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Financial Recovery: Urgent Need for Digital Solutions
Meta Description: Learn how financial systems are evolving amidst the pandemic. Discover the role of technology in ensuring swift money transfers and recovery in economies
URL: https://financedigest.com/how-digital-is-guiding-the-finance-sectors-response-to-covid-19html

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_By **Rahul Singh,** President of Financial Services,_ [_HCL Technologies_](https://www.hcltech.com/)

As COVID-19 spreads deeper and wider, financial transactions are slowing down, and emerging economies are suffering as a result. The challenge for financial systems is to ensure money is sent coursing back through the veins of the global economic system quickly. This needs to happen urgently, and has already started in the form of government-backed rescue packages, lowered interest rates and emergency measures.

Nation after nation is helping individuals and businesses to fight the crisis, with the UK offering a [£330 billion support package](https://www.politico.eu/article/uk-sets-out-330-billion-coronavirus-business-loan-package/) to organisations. But an important – and by no means easy – step for every [government contemplating similar measures](https://www.financedigest.com/factbox-government-measures-to-ease-inflation-pain.html "Factbox: Government measures to ease inflation pain") will be to send money quickly to the right accounts, _before_ the virus sends economies into complete stasis. Governments need to improve the availability of money at velocity, and the best way to ensure financial [recovery is to look to technology](https://www.financedigest.com/sulphur-recovery-technology-market-value-to-grow-by-almost-1-2-billion-during-2021-2031.html "Sulphur Recovery Technology Market Value to Grow by Almost .2 Billion During 2021-2031").

**How can [digital offer](https://www.financedigest.com/digitization-to-offer-stewardship-to-the-dental-cad-cam-dental-prosthesis-market.html "Digitization to offer stewardship to the Dental Cad Cam Dental Prosthesis Market") the helping hand?**

For money to be available quickly, financial systems must be [digital](https://www.financedigest.com/the-digital-finance-revolution-empowered-consumers-turn-digital-to-protect-financial-security.html "The digital finance revolution: empowered consumers turn digital to protect financial security"), robust and connected. They have to be linked and networked to ensure rules are used to quickly identify beneficiaries, verify them accurately and have the funds transferred directly into bank accounts – much like India has done [in recent weeks](https://www.financialexpress.com/economy/rs-7825-crore-transferred-to-jan-dhan-accounts-of-15-65-crore-women/1922899/) to ensure poorer members of society receive financial help quickly.

Across the world, banks are also announcing a range of support measures such as mortgage and loan holidays, while [credit card](https://www.financedigest.com/what-happens-to-credit-card-debt-when-you-die.html "What happens to credit card debt when you die") companies are deferring payments. However, these actions could easily become a double-edged sword. If banking systems are not geared up to manage back-end processes, they could inadvertently send reminders for loan payments to those who have chosen deferment, causing undue concerns, or affecting the [credit ratings](https://www.financedigest.com/sp-global-fined-1-1-million-euros-for-premature-credit-rating-publications.html "S&P Global fined 1.1 million euros for premature credit rating publications") of customers who may get flagged (incorrectly) as having defaulted on payments. To prevent this from happening, banks with crisis response policies must ensure they use [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "artificial intelligence") (AI) and robotic process automation (RPA) to accurately manage back-end systems and change business rules and processes quickly and at scale.

[Banks should also go one step](https://www.financedigest.com/uk-banks-and-insurers-told-to-step-up-help-for-struggling-customers.html "UK banks and insurers told to step up help for struggling customers") further. They can demonstrate the more humane side of their business by sharing [limited customer](https://www.financedigest.com/natwest-limits-customers-crypto-transfers-citing-scam-concerns.html "NatWest limits customers’ crypto transfers, citing scam concerns") data with partners, known as open banking. Data such as account balances, opt-ins to deferment plans, or customers’ postcodes to [identify areas](https://www.financedigest.com/identifying-areas-of-vulnerability-why-cybersecurity-shouldnt-be-an-afterthought-for-financial-organisations.html "Identifying areas of vulnerability: Why cybersecurity shouldn’t be an afterthought for financial organisations") affected by COVID-19, could be used by partners to send targeted food coupons, special offers on retail purchases, health insurance, and even deferred or lowered utility and broadband bills to the financially vulnerable.

Banks would also do well to partner with governments to create [COVID-19 related applications](https://www.financedigest.com/predisposition-biomarkers-market-future-trends-segmentation-strategies-to-boost-growth-applications-with-covid-19-impact-till-2028.html "Predisposition Biomarkers Market Future Trends, Segmentation, Strategies to Boost Growth, Applications with Covid-19 Impact till 2028"). For example, when a government announces cash grants to SMEs, a [mobile app](https://www.financedigest.com/the-growth-of-mobile-fintech-and-the-impact-for-mobile-app-marketers.html "The growth of mobile fintech and the impact for mobile app marketers") could allow the business to upload the documents to establish their credentials. RPA could then [verify and authenticate the documents and automatically have the funds transferred to the business’s account](https://www.financedigest.com/twitter-to-introduce-official-label-for-some-verified-accounts.html "Twitter to introduce ‘Official’ label for some verified accounts") before updating government records.

**The skills question**

Just as COVID-19 is about to fuel a new wave of digital innovation, it is also set to revamp the skills landscape in the financial [services industry](https://www.financedigest.com/why-sustainability-presents-one-of-the-greatest-opportunities-for-the-financial-services-industry.html "Why sustainability presents one of the greatest opportunities for the Financial Services industry"). [Remote working](https://www.financedigest.com/digital-insurance-and-the-remote-working-and-studying-boom.html "Digital insurance and the remote working and studying boom"), for instance, is already rising as a quick and clear path forward to get businesses economically and operationally back on track. [Working from home](https://www.financedigest.com/remortgaging-a-home-to-buy-to-let-how-does-it-work.html "Remortgaging a Home to Buy-to-Let – How Does it Work?") is becoming the new normal, and aside from setting up the infrastructure and the security processes it requires, remote working will demand that employees are trained and reskilled – so that they can competently direct customer enquiries and perform crucial processes from the comfort of their own home.

The rapid adoption of automation, analytics and AI will also require employees to learn new skills. But there is good news on this front: the rush for new [skills will be met halfway by intelligent co-worker bots or digital](https://www.financedigest.com/utilising-digital-tools-to-close-the-finance-and-accounting-skills-gap.html "Utilising digital tools to close the finance and accounting skills gap") assistants that will make financial services employees’ lives easier. Practically every employee in an organisation will have a [digital co-worker who has AI-backed skills like testing](https://www.financedigest.com/the-hiv-aids-testing-market-to-get-way-ahead-with-digitization.html "The Hiv Aids Testing Market to get way ahead with digitization"), accounts receivable, and year-end payroll skills, to improve efficiency and output.

**[Bouncing back](https://www.financedigest.com/bounce-back-loans-what-to-do-if-you-cant-repay-2.html "Bounce Back Loans: what to do if you can’t repay?") from disaster**

The financial [services industry is about to see dramatic transformation as digital](https://www.financedigest.com/how-digital-identity-verification-will-revolutionize-security-defenses-in-the-financial-services-industry.html "How Digital Identity Verification Will Revolutionize Security Defenses in the Financial Services Industry") technologies get pushed to the forefront of our response to COVID-19. Remote working technology, AI, RPA and other emerging technologies will become essential to the [finance sector](https://www.financedigest.com/why-the-finance-sector-must-prioritise-mobile-security-over-innovation.html "Why the finance sector must prioritise mobile security over innovation") to lower the impact of disruptive events in the future, and to come out stronger and better equipped to manage them.

For the moment, COVID-19 may be a major [crisis point](https://www.financedigest.com/explainer-credit-suisse-how-did-it-get-to-crisis-point.html "Explainer-Credit Suisse: How did it get to crisis point?") for financial services organisations in every corner of the world, but there is potential for it to be a pivotal moment that changes the entire future of the industry in a positive way. Financial services organisations must focus on adjusting to the new normal, adopt intelligent technologies that [build resilience into systems](https://www.financedigest.com/prefabricated-building-system-markets-advanced-research-growth-opportunities-in-global-industry-by-2025-edited-by-leading-research-firm.html "Prefabricated Building System Market’s advanced Research & Growth Opportunities in Global Industry by 2025 Edited by Leading Research Firm"), and reduce the need for human intervention for day-to-day operations. By doing this, the industry will also add speed to systems to ensure money reaches the [people who need](https://www.financedigest.com/people-need-people-humanising-the-digital-banking-experience.html "People need People – Humanising the digital banking experience") it most.


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