CreditManagement: New Facilities • Use analytics to develop personalized communication strategies that • Immediatelyscaleupoperationalcapacityto participatein government-supported rangefrom“checkingin”-typemessagestoallcustomers,to“weknow loanguaranteeprograms.Quicklytrainfront-linestafftomakethemawareofthese you’reincrisis,thisishowwecanhelp”forthemostseverelyaffected. optionsandbroadcastavailableinformationtoqualifiedborrowers. • Developproduct-specificmigrationstrategiesanddecisiontreesthat • If you are not set up to participate in these programs, ask regulators how you can help consumer and commercial advisors navigate to the right can help and if there is a way to get accredited and prepared quickly. If that solutions, help turn short-term cashflow credit into lower-risk longer- isn’tpossible,considerpartneringwithbanksthatcanutilizetheseschemesto term secured debt, including liberating cash from under-leveraged maximizetheflowofcredit. assets like unmortgagedproperties. • Understand the ability to create trade credit capacity by allowing suppliers to • Get creative about helping businesses generate income that can extendtermstotheircustomersandincreasetheirownworkingcapitalneedsand service debt when they’re unable to provide services, e.g. pulling borrowing limits. This could entail working with a local plumbing wholesaler or their revenue streams forward by helping them establish a gift card workingwithAmazonoreBay. orvoucherprogramthatencouragescustomerstoprepayforfuture • Get creative about sources of secured credit that can be tapped to increase the services when theyreopen. flowofcapitaltoconsumersandbusinesseswhilemanagingcreditrisk.Examples • Setupacentralcreditriskmanagementteamtotrackandmanage include borrowing against retirement plans, life insurance policies, and college changes in the asset portfolio and understand capital and credit risk fundsratherthanhavingtosellsecuritiesinadownmarket. implications.Banksneedtobeaggressiveinhelpingclients,butthey • Communicatecreativecreditideasthroughtradeassociationsandtrusted mustalsothinkabouttheirownmedium-termsolvency.Thereneeds intermediarieslikemembershipgroupse.g.AARP. to be a comprehensive understanding of the capacity to help within loosenedbutstillcontrollingriskparameters. • Don’t be 100 percent crisis focused. Understand that for some people, historically • Maintain an open line to the regulators to understand how they want low interest rates are an opportunity to refinance even if they are not under youtoreactandwhattheimplicationsareofregulatoryprogramslike financialstress.Createthecapacitytodealwithwhatmaybeoneofthefewbright IFRS and CECL. But be tolerant – they won’t have all the answers and spotsinanotherwisechallenginglandscape. willalsobereactinginrealtime. • Trytomoveto100percentdigitallendingasquicklyaspossible,takingadvantage of digital ID and signature technology to minimize in-person interactions. But also ramp up cyber and anti-fraud efforts to prevent your organization from being adversely selected bycriminals. 26 COVID-19: Open letter to retail and commercial banking CEOs