open talk | EP.1-Part 1: Impact of COVID-19 on the BFSI Market

//open talk | EP.1-Part 1: Impact of COVID-19 on the BFSI Market

open talk | EP.1-Part 1: Impact of COVID-19 on the BFSI Market

By | 2020-07-24T14:01:36+00:00 July 3rd, 2020|

EP 1 Part1 : Impact of COVID-19 situation on BFSI market

This is a very unique time in BFSI because obviously you are going to expect an economic downturn and you really have to prepare for what impact this downturn will have on the financial institution itself. The banks in general are undoubtedly prepared to take on the challenges of COVID-19 and its impact to the financial services industry and the economy as a whole.


They have forecasted this not necessarily knowing when exactly this will happen, but they know that the possibility of this happening has already been factored into their strategies. So, the banks and the insurance companies just really need to activate their business continuity plans, but also activate their risk management plans to survive and also make business out of this current pandemic and the impact that this will have on the economy as a whole.

Many of the financial services institutions are, therefore, reprioritizing risk management, and risk management has then practices and disciplines that has been a key feature of many institutions but somehow over the past three years, the practices of risk management got deprioritized, so that the other priorities like customer centricity or innovation or digital innovation would take more importance in the strategy of financial services institutions.

But, now I think it is important to revisit your Risk Management Plans, and risk management plans could be as extensive as capital related issues about liquidity and asset liability management or you are looking at some issues with regard to cyber security, cyber risk as well or operational risk which is very important these days. This is just really a matter of activating your risk management plans but also ensuring that you are well equipped to take on the operational aspects of this crisis.

What’s the critical technologies for BFSI right after COVID-19 situation?
This is quite interesting because it’s very critical to ensure that your operations are 24/7 or your operations are running as usual which was 24/7 anyway. The first set of technologies that were really prioritized the onset of this outbreak was obviously in a capability of the teams to continue to work as usual but maybe on a distributed basis. And, so the critical technologies they obviously would be productivity tools, but more importantly, productivity tools that would be on Cloud.

And, this need to make to be as reliable and secured and as available to staff as quickly as possible. So, there was a lot of things that is around how to support the workloads as they are increasingly performed from home, and also some of the workloads coming from the consumers. So, they need to work for the organizations to support scale and reliability of digital transactions services were very important that probably came after investments into productivity tools. So, the ability of the organizations to sustain operations on uninterrupted basis would be very important. And then the next set of technologies would be concerning security as well because the nature of security threats has also changed alongside the changes in technologies in the banking and insurance organizations, so cyber threat, threat intelligence is very important as well.

Cyber threat-related technologies would be very important these days, too. As you really look at a more proactive approach to survive in this crisis, you need to look at data and to look at what are the new types of data that you need, what are the decisions that I would be making based on those data that became very important as well. The ability of the institutions to analyze data fast on a real-time basis so that they can proactively react to the trends in the market became very important as well.
Many of these technologies are already available, it’s just really a matter of making sure that you adopt them in a safe and secured manner, but also be able to adopt them for the various use cases that have emerged out of this crisis. So, it is just really a matter of adjusting and making sure that these technologies are a good fit to the organization as well.

Can you share us for example Traditional Credit scoring? and etc.
IDC’s financial insights have been looking at the big industry trends and developments out of this COVID-19. One of them really is the use of data and you need to be able to use data and analytics on top of those data to be able to make determination or decide how you can best respond to the challenges of our time. Many of the data that we used to rely on do not work anymore.

Maybe because the conditions and the macroeconomic situation, employment, to the ability of the institutions to build the same type of business as before. Most of them are already gone. So, the data that we used to rely on to make decisions in 2019 are completely different from the data that we need for 2020. And, so many of the institutions would really need to prioritize which data and which models is going to take on for good response to the challenges of 2020.

The priority obviously would be a data that you need to make credit decisions and this is the reason why you need to develop a new, perhaps, a new credit scoring mechanism or a new credit framework to really understand who do you lend to, how much do you lend, and also what are the terms of that particular credit relationship that you have with customers. So, credit decisioning, credit scoring will really need to be prioritized as well because let’s remember that the business of banks would be primarily in the credit side and therefore you need to be able to ensure that your systems but also your technology and your decision frameworks for credit will be very strong.

About IDC
IDC is the largest, the most premier technology research company. So, we are looking at the use and adoption of technology across different industries looking at banking, financial services, insurances, I come from the team that looks at the technology spending of banks, insurances, and capital market players across the Asia Pacific region. We called IDC financial insights.

About TCC Technology Group

TCC Technology Group is a Technology Solutions Partner, aiming to address customers’ requirements with Best Value Solutions through Neutral & Trusted Facilities (certified under ISO27001), Secured Cloud Platform (certified under CSA STAR and PCI DSS), supported by Strong Connectivity managed by Experienced Professionals. TCC Technology Group consists of T.C.C. Technology Co., Ltd. (TCCtech), Leap Solutions Asia Co., Ltd. (LSA) and Shinasub Co., Ltd. (SNS). This power of Synergies among companies under TCC Conglomerates and Global Strategic Partners enhances continuous growth and commitment towards sustainability. For more details, please visit

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