For better

These are unprecedented times.  Never in our history have we faced such a global and unilateral threat, caused by a single enemy.  COVID-19 is reshaping our lives every day.  How we come out of this crisis will be totally up to each and every one of us.  Will this unify us and provide us with the foundational building blocks for a better existence, or will it further divide us and create an even wider gap between the haves and have nots?   In the movies, humanity always finds a way to pool its resources and defeat the common enemy and become true global citizens.  This is history in the making.

We keep hearing about the most vulnerable among us. I want to put this into a wider perspective. It’s not only the elderly and those with pre-existing health conditions that are the most vulnerable.  There are millions of people who will be impacted by the domino effect caused by the fallout from COVID-19. Among them are the homeless, shantytown residents, closed communities (Amish), refugee camps, illegal immigrants, day laborers, and the list goes on and on. 

I am asked every day, “how long do you think this crisis will last?” How can I possibly answer this question?  The point is that we must take full advantage of this situation to become better.  Better at everything we do, better at everything we stand for and better at everything we are.   Some of the changes we are making are temporary like social distancing, while others like washing hands, covering when sneezing or coughing, etc… should be forever.  I am oversimplifying this of course, as there are so many more changes occurring every day.  The most noticeable one is the digital transformation across all sectors.  With the social distancing and work from home mandates implemented globally, I have actually seen 3 very interesting and measurable positive outcomes:

1-    Decision making is faster and more concrete. What used to take weeks in terms of business decisions in now taking minutes and is leading to quicker turnarounds and higher productivity.

2-    Productivity in many sectors has surged to unbelievable performance levels. People are cranking out quicker products and faster services than before.  This could be a result of fewer meetings and lesser distractions. It might also be the kids being at home and asking ever five minutes"are you done yet?".

3-    Pollution is down 20% to 30% in some areas around the world due to the limited mobility of people. The night skies are incredibly clear. I haven't seen to many starts in ages. The air is fresh and noise pollution is down considerably.

So what can we do in the meantime to create a better outcome when this is all over? Here are a few thoughts I would like to share with all of you. Are you Ready?

Access: Without unilateral access and a level playing field, all our efforts to weather the storm will be seriously compromised. The most important access point today is the Internet.  This is the gateway to learning, working, getting health checks, ordering food and essentials, sending money, etc … etc ... Yet millions of people still lack basic access around the world due to gaps in coverage, unaffordable plans and expensive devices.  

Affordability: For free before any fee and credit to all.  First, our credit scorecards need to be revised to reflect the times we are living in.  With companies already downsizing and millions of people out of work for the next few months, nobody wants to commit to any subscription-based services with regular monthly payments. Contracts need to change and trial periods extended for at least 90 days for all digital services to start.  For e-commerce providers, consider offering free delivery, at least for first time users. Avoid high markups on popular products.  If you are offering online purchasing and transactions, keep the same price as in-store. 

Credit: The SBA (Small Business Administration) and Banks are lending up to $5 million for 30 years at 3.75%. With most Americans having less than $400 USD in total savings, personal lending for people who need to pay rent, buy groceries or pay for prescription medicine is rapidly disappearing.  Lenders are tightening their belts and minimizing their exposure by excluding those in most need of borrowing.  We have enough data and tools to reformulate credit scoring and allow people to borrow based on their willingness to pay versus their ability to pay.  The remittance consumers sent nearly $700 billion to their families back home last year.  There are around 270+ million migrant workers around the world, many of whom will be hardest hit by the job losses and mobility restrictions as a result of COVID-19.  A new credit program needs to emerge to specifically address this group of vulnerable people. Nobody is looking out for them.

Regulation: If it makes sense, just approve it! Regulators around the world need to get up to speed fast.  For once, they must put any personal or party agendas aside and focus on how to best serve their citizens, local residents, and businesses.  We cannot afford to wait for committees to form, long debates to be held and endless drafts to be written and rewritten.  Now is the time for total collaboration and a common sense approach.  I am certain they won’t get everything right the first time, but at least it would be a step in the right direction.  Imagine, for example, how many countries around the world still do not allow e-commerce! Others have less than 2% bank card penetration and fewer than 1% of merchants accept any sort of payment other than cash.  Some countries even require that only mobile devices and card payment terminals manufactured in their country are allowed. It is time for radical changes.  Every person and every merchant has at least one mobile device.  We need to make better use of those devices worldwide.  While we would love to issue a VISA card or MasterCard to every adult around the world, this is not practical. What is practical is the transformation of every mobile account into a digital wallet. You will instantly have 7+ billion digital wallets around the globe that can transact, pay, get paid, and send and receive money.  By the way, postpaid/contract, prepaid or pay-as-you go mobile phone accounts were the first Digital Wallets. Telcos /MNO’s have the most sophisticated, connected and interoperable value exchange system in the world. Just think about how they pay each other when you call a person from one country to another, and that call is routed through various operators who split the fee.  Regulations currently prohibit Telcos from utilizing their digital wallets, which are designated as “Airtime Credits” for payment of goods and services.  Some have been allowed to make payments using “Airtime Credits” for digital goods like e-books, music downloads and gaming credits.  So much more can be done in this area to radically transform the digital payments landscape overnight. 

Collaboration: Rails and roads are for everyone. Toll charges can apply but must be balanced and fair. If we all play together nicely and help one another, things will get done faster, cheaper and easier.  There will be plenty of time for competition down the line with enough to go around for everybody.  For now, collaboration, resource and information sharing is key.  Customers will make future buying decisions based on how they perceive companies and brands during the most difficult of times.  Don’t disappoint them.

Interoperability: With APIs for practically everything, it is now easier than ever to integrate functionalities, application and capabilities, be it within a company or across a group of companies. Even if your company not yet API enabled, there are hundreds of reputable 3rd party service providers that can easily facilitate a plug and play capability quickly and cost effectively. Don’t delay; just get it done.  Cards, digital wallets and mobile payments should all be interoperable and linked to the entire value chain and payments ecosystem. Every merchant with a mobile phone should be able to accept every type of digital payment effortlessly.  It is also time to consider how to best cash-in or utilize all the billions of reward points across all the loyalty programs.  Every value should have a currency exchange equivalent to pay for goods and services.  Remittance companies should open up their platforms to support each other.  Many smaller niche money transfer companies will be isolated due to the temporary closure of their brick and mortar locations, and they do not have a digital channel to direct their regular customers to.  These companies provide a critical link between senders and receivers.  Companies like Transferwise, Western Union, MoneyGram, XOOM, WorldRemit , Remitly, Azimo, and hundreds of others who have a digital channel should extend their channels to those who don’t have it. The remittance consumers, composed of about 270+ million migrant workers spread around the world, are going to be hardest hit by the job losses and mobility restrictions as a result of COVID-19.  Nobody is looking out for them.  While the remittance companies have made billions of dollars in profits over the years from these customers, it’s time to give a little back by making sure that they continue to receive reliable, safe, and affordable services during these difficult times.

Employment: Hold on to your employees, they are your most valuable assets. It will cost you significantly more to replace when things get back to normal. Don't rush to reduce your workforce without considering the long term effect on your business, your reputation and your ability to attract future talent. Once things get back to normal, the job market will be so hot, making the recruitment cycle longer and much more expensive. Not to mention all the training and retraining you will need to do. Take advantage of all the low interest business loans being offered around the world to help you get through this difficult period.

Identify: With social distancing, identify verification and document authentication is becoming more difficult. New tools need to be rapidly incorporated from across various industries to allow expedited, contactless transactions. Most of these tools already exist, it's just a matter of collaboration, interoperability and regulatory approval. With an authenticated ID and full Know Your Customer (KYC) due diligence, everything is possible.

Security: Millions of newbies are entering the Work From Home (WFH) arena. Students of all ages are logging on for online learning, and everyone else jumping on the internet for the first time and downloading all sorts of applications on their phones, tablets and laptops, hackers are having a field day with malicious attacks, phishing and ransomware.  It is your responsibility to educate and protect your kids, your employees, your customers and seniors, who fall victim to all sorts of scams every day.  Check and eliminate any system vulnerabilities. Delete access for employees who no longer work at your company.  Change your password and Tele/Video Conferencing numbers and pins.  Wash your hands frequently and for at least 20 seconds. Stay at home when directed to do so and keep your distance from others (at least 6ft apart). Be SAFE!

If you have any questions or would like to learn more about any of the above, get in touch. Send me a message or invite through LinkedIn.  I would love to continue this dialogue with you.  

Be well and stay safe. 

AJ Hanna

www.dhirubhai.net/in/ajhanna