Benchmarking Study to Assess Crisis Response Best Practice in US Banks

A pandemic risk benchmarking survey has been launched to help risk managers at mid-tier banks ensure best practice during the COVID-19 coronavirus crisis.

Bank software provider 360factors said its survey was being made available to all risk and compliance personnel in banking and financial services and takes less than three minutes to complete.

The survey is anonymous and gives participants the option to receive a report of the results along with a best practices summary.

“We recognize that risk and compliance officers have a tremendous amount on their plates in the midst of this rapidly changing pandemic,” said Carl McCauley, CEO of 360factors.

“During this unprecedented time, our goal is to help ease some of the burden of risk managers by sharing best practices and community content.”

The survey is open from 24 March 2020and will conclude on 3 April 3 2020.

360factors joins a growing list of financial services providers and banks who are battling to ease the economic and personal burdens posed by the COVID-19 crisis.

Connecticut-based People’s United Bank has announced a package of relief initiatives for customers, communities and businesses experiencing hardship – such as loss of work and business revenue – as a result of the coronavirus.

These include waiving fees on a case-by-case basis for late overdraft payments, ATM fees and other penalties, and a postponement of some fee changes initially planned for 1 April 2020.

Individual support is also available for consumer and business loan customers, including a 90-day foreclosure moratorium on eligible residential loans.

“These relief initiatives are designed to mitigate the hardship to customers and businesses caused by COVID-19, and support our non-profit partners whose services are critical in easing the pressure of recent events,” said Jack Barnes, chairman and CEO of People’s United Bank.

“We encourage our customers and non-profit partners to reach out to our bankers and community foundations to discuss individualized approaches to reducing hardship they may be experiencing.”

The bank is also reducing its branch opening hours and has initiated appointment-only banking to limit foot-traffic. Instead, it is focusing on digital and online services, in line with the majority of banks across the US.

Meanwhile, Comerica Bank and the Comerica Charitable Foundation are collectively investing $4 million in community support for businesses impacted by the pandemic.

The funds will be primarily deployed to “community development financial institutions”, the bank said in a statement, to help meet the needs of small and micro businesses that have been impacted by COVID-19.

Comerica is discussing various loan payment deferral and fee waiver options with its business and personal customers, it added.

The Nationwide Foundation, a non-profit run by insurance company Nationwide,is also making $5 million in contributions to local and national charities to support medical and economic response efforts.

“As communities experience impacts related to the pandemic, many non-profit organizations stand on the front lines, providing basic necessities, wellness services and support to those in need,” Nationwide CEO and Nationwide Foundation chairman Kirt Walker said.

“Finances, staffs, programs and resources are being stretched as these non-profits not only serve their communities but feel the impact themselves. During these challenging times, we each have a responsibility, when we can, to lift those around us.”

The American Bankers Association has introduced a database logging the actions taken by banks across the country in response to the COVID-19 pandemic, which is available here.