The continued decline in online search volume for “travel rewards card” further reflects this shift, with a decline of over 80% since February
Lending Industry Developments
Lenders’ ease of transition to a “work from home” model has varied, with some doing so seamlessly and others having more of a problem
Some established banks with a traditional call center model have had more difficulty maintaining service levels
“Newer” companies with more agile outsourced servicing models have tended to fair better
Executives appear to be in no rush to return to centralized offices, with some, such as Barclays’ Jes Staley questioning the “large downtown headquarters” model’s long-term viability
Capital One CEO Richard Fairbank announced that non-essential workers in the U.S., Canada, and U.K. will not return to the office until after Labor Day
Banks are actively planning for a return to branch banking by removing seating in lobbies to discourage loitering, providing masks for customers, and erecting additional physical barriers such as plexiglass
While the physical modifications are straightforward, the issue of identifying customers wearing masks continues to be a debate without obvious solutions
There have not yet been widespread layoffs in the lending industry
Alternative Lenders
Many alternative lenders continue to be absent from the personal loan table on LendingTree
Most of those still present have higher rates than the competition
Lenders Continue to Back Away
In addition to JPMorgan Chase and Figure, Wells Fargo stopped accepting new HELOC applications as of May 1st
Bank of America has raised its FICO cutoff for HELOC’s from 660 to 720
SunTrust has also discontinued making private student loans
Going Forward
After a dramatic shift in lending markets and work environments, lenders are settling into the new paradigm
As states begin to re-open, changes in employment and economic trends will further impact the lending markets