Episode 337: Winners and Losers in a Post-Pandemic World

The impact of the COVID-19 novel coronavirus has been both global and catastrophic, as both a public health crisis and as a worldwide economic crisis. Dealing with the health risks will continue for a while, but what’s likely to last even longer are the economic effects, and those always have a big impact on the financial services industry. We talk about who’s winning and losing today, and over the long run in a dramatically changing world.
Show Hosts:
JP Nicols
 
Show Guests: Ron Shevlin, Penny Crosman, Jim MarousTOPICS DISCUSSED:[2:30] Are payment processors fairing well during the COVID-19 pandemic?
[4:00] Organizations that were further ahead in digital efforts have been able to be more agile in servicing customers.
[8:02] Ron Shevlin discusses his latest study regarding small business banking. 
[13:30] Jim Marous highlights the importance of being a data-first organization. 
[15:00] We are seeing numerous lawsuits against banks for how they processed PPP loans.
[18:05] Should the government have waited 24-48 hours to roll out the PPP platform?
[21:08] Many small businesses are struggling with the payroll portion of the PPP program. Will they struggle to get forgiveness?
[23:12] Ron Shevlin discusses his article https://www.forbes.com/sites/ronshevlin/2020/05/04/the-looming-paycheck-protection-program-forgiveness-nightmare/#15388a5e2e25
[33:30] What does consolidation in the financial industry look like moving forward?
[40:57] Will we see more deployment and resources reallocated to digital experiences post COVID-19? What does this mean for branches?
[46:50] What is the potential for ITM’s and virtual assistants in the near future?

 
RESOURCES MENTIONED:
Cornerstone Advisors
The Financial Brand 
American Banker
Forbes
Stripe
Square
PayPal
True Accord 
Verizon
TD Bank
Bank of America

 
Show Sponsors:
ExpressVPN
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FULL SHOW TRANSCRIPTION
Announcer:
Financial technology, or fintech, is one of the fastest growing industries in the world today, with New York, London, Tel Aviv, Edinburgh, Singapore, Moscow and other major cities all vying for a piece of the action. Welcome to Breaking Banks, the first dedicated radio show that focuses on how this new boom is changing everything, from the way we bank to the very concept of money itself. Now, here’s your host, Brett King.
JP Nicols:
Welcome to Breaking Banks, the number one global fintech radio show and podcast. I’m JP Nicols. Today, we’re looking at winners and losers so far in this pandemic era, and as we look forward to a post pandemic world, with three of our regular and most prolific contributors. Ron Shevlin, director of research for Cornerstone Advisors and senior contributor to Forbes, Penny Crosman, executive editor Technology at American Banker, and Jim Marous, publisher of the Digital Banking Report and co publisher of the Financial Brand.
JP Nicols:
The impact of the COVID-19 novel coronavirus has been both global and catastrophic, as both a public health crisis and as a worldwide economic crisis, and we’re still in the relatively early stages of it as we record this in early May of 2020. The financial services industry is caught in the squeeze as many workers are at risk on the frontline provided much needed access to relief loans, while others are adapting to social distancing directives.
JP Nicols:
Dealing with the health risk will continue for a while, but what’s likely to last even longer are the economic affects, and those have always had a big impact on the financial services industry.