Position now to emerge stronger Many small Many small businesses are being forced to take some sort of downsizing action to adjust to the changing economic conditions.1Many have even had to close their doors temporarily in businesses are compliance with government mandates. For how long is uncertain, as the health crisis expands at unprecedented speed and scale. Many businesses will quickly use up their being forced to available cash reserves. According to JP Morgan research, half of all small firms hold a cash 2 buffer of less than one month and 25 percent of them hold a buffer of less than 13 days . Small take some sort of businesses are looking to and calling on banks for financial insights, answers, and solutions that they can use to form and execute adequate responses in the short and long term. downsizing action At the same time, commercial banks must take immediate action to protect their people and stabilize their own business operations. In line with government mandates, most banks have already shifted to remote working arrangements where possible—doing so at a time when to adjust to the demand for their services is at its peak. The National Australia Bank, for example, saw the same 3 volume of customer inquiries in just one week that it would normally see in a year . Banks changing around the world are experiencing similar surges and the trend is set to continue indefinitely as the health crisis causes small businesses to slow down or even stop altogether, setting off economic another wave of impact as suppliers up the chain feel the tightening of their demand. conditions. 3 Copyright © 2020 Accenture. All rights reserved.