What a whirlwind second quarter we just finished! This time last year (heck, even Q1 2020), we could never had envisioned all the excitement and busyness of these past three months. With COVID-19 reaching pandemic level shortly after the start of Q2, we’ve changed our structures and routines a bit, tried our hand at remote training, seen great milestones accomplished, and created three new products.
The COVID-19 pandemic has radically changed nearly every facet of American day-to-day life to where most citizens do not see our daily routines ever returning to what we once considered “normal.” When we say every facet, we mean every facet. Mental, physical, familial, financial, personal, and professional. A lot of the effects we’ve felt from the pandemic have been less than savory, but this pandemic is also changing some things for the better. Below are just a few life lessons many Americans have learned from this pandemic (so far) regarding banking and finances.
Prior the coronavirus outbreak, there was a growing rate of stores and businesses no longer accepting cash. While this may seem like a natural progression as technology and digital banking grow, this cashless model was actually met with a lot of backlash. Just six months ago in January 2020 (which may feel like years to many of us), New York passed a bill banning businesses from rejecting cash payments nearly unanimously.
Big bankruptcies have been trickling in this year as the US continues to navigate through the coronavirus pandemic. Many of these companies filing for bankruptcy have been, unsurprisingly, airline and travel companies, and now we are seeing more and more big names like J. Crew and J.C. Penney added the list. “In May alone, some 27 companies reporting at least $50 million in liabilities sought court protection from creditors -- the highest number since the Great Recession,” reports Bloomberg.
The largest banks in the United States have recently reported exceptional growth in the past months. The ten largest U.S. banks grew in asset size by more than $1.2 trillion in Q1 of 2020. 20 percent of this growth alone ($273 billion in new deposits) came from JPMorgan, placing it as the first bank in the U.S. with $3 trillion in assets.1
Many organizations have feared a work-from-home model for years, worrying about the risks that come with more distractions, less accountability, and less productivity for employees, but the COVID-19 pandemic has forced many organizations to adopt work-from-home procedures despite their apprehension. However, many have found their fears put at ease—this actually works. Not only do employees have more free time, lending way to better quality of life, and get to work in sweatpants, but they’re doing it with just as much, if not more, productivity. Many predict that working from home is here to stay.
It has been several days since the second round of PPP loan processing began. Bankers were hoping for a smoother ride this go-around, but many of the same problems that plagued the first round of the Paycheck Protection Program are still on the scene in round two.
This school year, the celebrations are limited, but the appreciation has exponentially increased as parents and caregivers across the nation have walked a mile in the shoes of a teacher. Between Zoom meetings, AMI packets, communications with parents, and supporting and caring for students, teachers are still working hard in the background, supporting their students and families as much as ever.
The U.S. Consumer Confidence Index has dropped by 30 percent since February, from 101 down to 71.8—the lowest it’s been since December 2011. Unemployment is at its highest since the Great Depression, and many families and businesses are already unable to pay their rent or mortgage among other expenses. Many citizens and experts have expressed fear that America might experience another depression. “We have never seen anything like this," says Princeton University professor and economist Alan Blinder regarding the recent number of unemployment claims. “This looks likely to be deep enough to qualify as a depression."
On Monday (April 20th) oil prices reached below zero for the first time ever at negative $37 a barrel, meaning traders were paying money to get people to take oil for the month of May. A recent article from NPR says, “It’s a sign of just how imbalanced the global oil markets are.”