Right now it is business-as-not-usual for millions of SMEs due to the Covid-19 crisis. Their survival relies on quick and fair distribution of the emergency funds backed by the British government. That is why banks play an important role as trusted intermediaries.

The British government set up £330 billion of guarantees for all businesses affected by the Covid-19 crisis. However, BBC News covered yesterday that many banks are disastrously failing in helping their business customers out. As a result, Chancellor Rishi Sunak quickly revamped the emergency loan scheme to ensure a more efficient payout of the funds.

Banks that act swiftly will generate more goodwill and brand loyalty than in the last ten years combined.

As many businesses face major disruptions, banks now need to step up and do whatever it takes to absorb the unfolding economic shock. Successful banks that now lead by example have a clear idea about their reason for existence, their fundamental purpose beyond the shareholder value-oriented chase for returns. The ones that act swiftly by helping out their customers will generate more goodwill and brand loyalty than in the last ten years combined.

Read more about why purpose-driven banking is now more important than ever before on our latest post on Finextra.

About the author

Adrian Klee, partner at Ross Republic

Adrian Klee

Adrian is an expert in building digital business in the financial services sector. He has a background in Fintech and Consulting, and specialises in market research, digital service development and lean venture building.

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