“It takes time for loans to go bad and the full extent of problems to surface, so I’d predict this is likely to be a 2023 issue.”
That’s what Michael Jamesson, a principal at the bank consulting firm Jamesson Associates, told American Banker when asked about the long-term impact Covid-19 economic relief might have on the financial services industry.
Consumers, and in general, the overall economy, have benefited tremendously ever since the government began sending aid to segments of the population. Special loan accommodations from credit providers have also helped reduce the burden on people during the pandemic.
In addition to propping up consumer spending, the support from the government enabled consumers to pay down some of their loans and bills. Several bank executives noted that consumers also held more in their savings accounts as they did not spend large percentages of their stimulus checks.
Between the calls for a fourth federal stimulus check, state-specific aid, and an increasing number of vaccinated people, no one knows how credit issuers will fare over the next few years. We do know, however, that companies can put strategic best practices (and some new ones) into place right now to prevent delinquencies, whether it’s two months from now or two years from now.
On October 14th, Perficient’s Byron Gifford, a collections expert, and Scott Albahary, Financial Services Chief Strategist at Perficient, will host a webinar, “Optimization Strategies to Improve Collections.”
They’ll discuss what steps banks, credit unions, captive finance, and other credit providers can take to transform their collections activities. Not only will organizations boost their payment rates, but they will also increase customer loyalty.
A number of executives from respectable organizations have already signed up, and we look forward to having you join as well!