Coronavirus is also known as COVID-19(CoronaVirus Disease 2019). Coronavirus is a family of viruses of SARS, which cause difficulty in breathing, fever, cold, cough, and severe respiratory problems. This virus has been identified in China in the year 2019, where it has not been seen in humans earlier. The person with the coronavirus disease will be normal and it is a challenge, to identify the affected person for a period of up to 14 days. Generally, this disease will be spread through the droplets of the affected person while coughing, saliva, or sneezing.
COVID 19 has been originated from the city of Wuhan in China on 31 December 2019. Later the virus has also been observed in various cities of China. In later stages, the disease has been reached to many countries and it has been confirmed as a contagious virus through human beings. In March 2020, WHO has declared the virus outbreak as a global pandemic. Through this pandemic outreach, all industries are being prepared for their safety stock level and having a huge Research and development working on the Post-COVID 19. The pandemic outreach has been to lead to the majority of the nations. As a course, countries have been implemented the lockdown in their respective countries to tackle down the pandemic outreach.
The period of 2020 has been very distracting in many organizations and countries. The duration of the COVID effect is 2 Months as of now. It may reach an approximate of 6 – 9 (Months) for a complete recovery from the situation in the entire world if the drugs have been invented by the research organization. As of now, the time frame of this period, countries' growth rate prediction in estimates are being made 0 and some countries are negative growth by the Rating companies. The financial projections of the companies are also being cut down growth and expansion due to the COVID outbreak period.
Banking. Financial Services and Insurance is a booming sector with a variety of services and financial products. All the firms under BFSI are developing the products and services with the alignment of evolving technology and changes in customer preferences before the COVID outbreak. The aim of the firms in capturing the market share was higher and cutthroat competitiveness among Big firms. The liquidity available in the companies was not bad, due to before COVID 19 also we are at the point of the recession, but that challenges have been overcome by the proper operating of monetary policy and fiscal policy for providing the adequate liquidity in the market.
All financial institutions are being hit very hard by the COVID 19. The supply chain of the flow of liquidity has been interrupted. The customers are willing to pay the money and doest come forward to deposit their money in the bank, instead, they feel secure of money with them or purchasing the alternative instrument, such as gold, etc. The availability of the operations and the functions are severely affected by these sectors and the lead and customer generation will be hugely impacted. However, the government has taken the necessary steps to make banks stabilize.
The impact of COVID 19 has been severe in the BFSI due to the flow of money has been stuck at various activities respectively. The customer stops paying the EMI on their purchases of products or services. Besides the government has also been implemented a moratorium on the EMI for 3 Months, this will make the BFSI be on a draught frame of funds. The ratio of nonperformance Assets will increase heavily due to not generating revenue by the payers amid of lockdown. The bank financial statements will show a heavy decline in numbers for this period of COVID 19.
Amid of Lockdown the threats to the industry have been generated and swept away the many opportunities in the expansion of the services of the company. This is due to the chain break of operations of the industry. The sale of the financial products will not be in the growth stage and will also see the decline rate, due to the low purchasing power of the costumers. This will have a great impact on financial institutions. The credit risk will have a huge impact on the BFSI due to unavailability and the risk of non-repayment of the taken loans. In the case of insurance companies, the chance of the growth of the business opportunity is favorable due to, the public will tend to make them more risk cover on the persons as well as their business and allied activities.
The BFSI is one of the affected sectors due to the global pandemic. As a reason for the functionalities of the Financial institutions in this lockdown, the impact of job cut may be low, when compared with the other industries. In this lockdown, a private source has given an explanation of the loss of the revenue by the 60 trillion in one month of the period only. This is a complete reflection of the loss of revenue by the financial institutions. The loss generated my be increase heavily if the global pandemic is not controlled.
In every financial service, the service and financial products will be essential and not-essential. The customers will have a low purchasing power in this durations and post COVID 19. As a result of the customer's purchasing power, they will move fastly towards essential products with the growth of “V” shape recovery, and if any non-essential products, the customer will pay or buy very less of this category products. Post-COVID 19 Scenario the BFSI will be expansion should be completed digitally, even it can be reached to the rural remote areas. The handling cash will decrease heavily and all are interested to move to digital and smart money heavily. Virtual banking will play in the scenario of the BFSI industry.