Pandemic is an exceptional situation and calls for exceptional measures. Financial and economic disruptions is normal and evident. Based on data analysis and projection from International Monetary Fund , the global economy is projected to contract sharply by –3 percent in 2020 and assuming that the pandemic fades in the second half of 2020 and containment efforts can be gradually unwound—the global economy is projected to grow by 5.8 percent in 2021 as economic activity normalizes, helped by policy support.
Advanced economies entered this crisis with interest rates at historical lows and public debts, on average, higher than they had been over the past 60 years. They will come out from the crisis with even higher public debts.
The remedy to overcome this eyes at Macroprudential. This regulation involves a broad set of policy tools that aim to contain the buildup of systemic vulnerabilities and strengthen financial sector resilience, including measures to increase bank capital and liquidity, reduce leverage in the household and corporate sectors, and prevent currency mismatches.
Information Technology Industry and Financial Services have to adapt the changed eco system and act swiftly to cope up. Organizations have to execute these priorities for success for 2020 and beyond:
- IT operating model needs to be modified to align with new normal.
- Transform by taking SaaS beyond the cloud, and adopting robotics/AI.
- Have robust and secure architecture to connect to anything, anywhere.
- Have right talent with upskill and cross skill program to execute and win.
- The sharing economy will be embedded in every part of the financial system. Blockchain will shake things up.
- Advances in robotics and AI is inevitable. Embrace it.
- The public cloud will be most utilized infrastructure model.
It was difficult to broadly envision pre pandemic about launching a bank as plug in, taking financial advice from artificially intelligent apps, branches and operation centres staffed by sophisticated robots instead of human tellers – IT SHALL HAPPEN NOW.
New Normal requires new mindset on people aspects. Managing mental stress and wellbeing of work force with adequately covered employee communication and engagement shall be key to keep motivation level high and elevated. Over communication shall achieve right level of engagement for people in organization and clients.
There is lots to do to overcome the situation and only open minded will survive, be it organization or individual. Embrace the change, prepare and execute to win.