We are in unprecedented times and if you are a Lender, it should have highlighted to you that the impact will be on both you as a Business and your Customers. Your Business is suddenly faced with immediate Risk Mitigation actions, a focus on Provisioning and above all Debt Management, whilst also having to be Responsible, Empathetic and Ethical towards your Customers to get through these crises.
In parallel, the Australian Banking Association (ABA) has been active in asking its members to have Hardship Teams ready to help Customers through these tough times including:
- Deferring or reducing loan repayments,
- Increasing Credit Card emergency limits,
- Waiving fees and charges or penalties,
- Freezing, restructuring or consolidating loans; and/or
- Altering loan repayments to interest-only.