6 Ways Banks are Doing Their Part during the Coronavirus Pandemic

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As the struggles with the COVID-19 pandemic continues, more and more people are pulling their hair in frustration. The pandemic has not only affected the worldwide health system but has put a strain on many peoples’ finances.

In such an unprecedented time, stores are going out of business, people are getting laid off, employers are struggling to provide workers with paychecks on time, and so on.

The only way to get through such a difficult time is for the community to come together. That is why banks have started reaching out their hand to aid people during these trying times. Here are a few steps that banks have taken for the people and the community during the coronavirus pandemic.

1.   Small Business Loans

While large franchises were able to cope with the pandemic for a while, the ones hit hardest were small businesses.

Even when restrictions were slowly lifted, small businesses such as restaurants scurried to open their doors. However, they were met with the silence of empty stores.

Many of these businesses have started to fear shutting down and closing their doors permanently.

To deal with this, banks have stepped up and started issuing SBA loans. Banks have issued $1.1 billion of loans specifically for small businesses so that they can cope with their losses during the pandemic.

2.   The Health of Employees and Customers

The banks have not only reached out to people suffering from financial crises, but it has also been trying its best to look out for the health and safety of the people who come in contact with the bank.

It is difficult to come to terms with the fact that people who are vulnerable to the financial burden of the pandemic are more at risk because they have to put their health on the line and go to banks.

Furthermore, the bank employees’ health is also at risk as they have to serve the people by being at work.

Thankfully, clicking here you will be able to find banks who have considered these problems and are taking them seriously.

For example, banks are highly encouraging customers to utilize their online banking facilities so that they can minimize physical contact between people.

Moreover, some banks are also offering remote working options for their workers so that they can fulfill their important work without risking their health. 

On the other hand, the banks that cannot avoid closures during lockdown have also taken measures to the best of their ability. Banks have resorted to deep cleaning their facilities, disinfecting anything and everything that comes in contact with people in order to reduce the spread of the virus.

Click here to see examples of safety signs that can be used to keep workplaces safe and customers aware of safety measures in place.

Additionally, they also do their part by practicing social distancing and all the other safety protocols suggested.

3.    Bonuses for Bank Employees

As we go further into the pandemic, we can see how hard financial issues are hitting the people alongside the coronavirus. It is important to acknowledge the efforts of the people who make it possible to deal with the financial burden through loans and aid.

Bank employees are one of the heroes saving people from this burden, so, to acknowledge their hard work, bank workers are receiving generous bonuses.

4.   Opportunity to defer payments on financial products

The pandemic came without any warning signs and it was not something anyone could prepare for. So, when the sense of job security started to dissipate for workers, all plans for the future were put on hold.

On top of job security, any family directly impacted by the coronavirus would be able to speak of the financial ruin it leaves in its wake. The cost of an ICU bed, medication, treatment, and so on can leave a huge dent on a family’s savings.

That is why banks have taken a step back and are allowing people the opportunity to put off their payment for later on financial services. Meaning, people are now allowed to delay their payments on mortgages, deposit accounts such as overdraft fees, credit card bills, and so on.

Normally, if people had to worry about paying off all these bills on top of losing their job or paying the hospital fees, it could potentially affect their living standards permanently.

5.   Funds to Alleviate Impact of the Pandemic

Banking services have not only been limited to financial services but also collecting and distributing funds where it is needed the most. Coming together as a community helps even out any imbalance of finances and spread out the aid where it is needed most.

In other words, if the bank had money while the hospitals struggled financially, it would be a lot harder to tackle this global issue.

In order to combat this pandemic, banks such as the African Development Bank raised $3 billion which is to be used to deal with the impact of COVID-19.

Furthermore, Citi bank has raised $65 million to aid the frontline workers and their families. The money is also to be distributed to those communities which have dealt with the hardest blow of the coronavirus.

So, the funds have not only been used for hospitals to collect vital hospital equipment, but it has also helped fund many small businesses so that they can survive.

6.   Personally Assisting Customers

Many banks such as the Citizens Bank of Edmund are taking customer care to the next level. Banks are providing personal assistance to those directly affected by the pandemic such as business loan modifications and other financial services.

Some banks are doing this on a case by case basis so that they can provide maximum help to the people who really need it.

Final Thoughts 

The way banks have stepped up to help people show that we cannot just focus on the performance of one sector to solve a global issue. People must come together to help each other out in this time of need.

Banks have proved that they are doing their part by their contributions to social causes, their service adjustments for aid, and their focus on maintaining hygiene and safety rules.