The news: On March 10, the Dow dropped 890 points (2.08%); the S&P 500 fell 2.7%; and the Nasdaq tumbled 4%, marking its worst day since 2022, per CNN.

How we got here: Trump’s shifting trade policies, including tariff hikes on China, Canada, and Mexico, have created market instability. Meanwhile, signs of economic weakness are emerging, such as increasing layoffs, slowing hiring, and eroding consumer confidence.

What does this mean for banking customers? Many consumers are panicking:

• Baby boomers nearing retirement have noticed their investment accounts aren’t where they need to be.
• Young professionals with student loans are worried about job stability and how they’ll make payments if they get laid off.
• Small-business owners facing higher costs due to tariffs are struggling with cash flow, which will make it harder to keep operations running smoothly.
• Homeowners with adjustable-rate mortgages are stressed about rising interest rates and whether they’ll be able to afford their monthly payments.
• Lower-income families dealing with inflation and potential job losses are finding it even harder to cover everyday expenses, which could lead to increased reliance on credit.

How can banks strengthen relationships? Banks can proactively reassure customers and provide tangible support during uncertain times. Next steps should include:

• Offering financial check-ups to help customers reassess their budgets, investments, and savings strategies during economic uncertainty.
• Providing flexible loan options such as deferred payments or lower interest rates for those experiencing financial hardship.
• Enhancing digital tools that let customers track spending, set savings goals, and receive personalized financial advice.
• Expanding financial education resources on topics like managing debt, preparing for economic downturns, and long-term investing.
• Supporting small businesses with advisory services and loan refinancing options to help them navigate rising costs and cash flow challenges.
• Strengthening fraud protection measures, as financial stress can increase vulnerability to scams and identity theft.