Download - Account Opening Process-Documentation.pptx
Simple Money Solutions
Account Opening Process/Documentationwww.rencredit.com
1
Agenda
www.rencredit.com
Objectives
Key Principles
I
II
Findings
3
4
5
ConclusionIV
III
13
2
Objectives
www.rencredit.com
Provide progress report on process
review undertaken
Present findings of process review conducted
Discuss the recommendations
proffered to improve account opening
process
Obtain Management’s views and buy-in on
proposed recommendations
3
Key Principles
www.rencredit.com
4
Efficiency ProductivitySpeed
Control
Simplicity
Convenience
KYC
Findings
www.rencredit.com
5
Returning Customers
“As-Is” Process “As-Is” Process Gaps
Returning Customers currently have to complete the same as fresh applicants
The current process is cumbersome and time consuming as customers have to provide us with information we already have.
Recommendation
The form for returning customers should be modified to reduce duplication of data. The new form for returning customers should not require customer to, for instance, provide information on gender, date of birth etc. as this information are unlikely to change.
Findings Cont'd.
www.rencredit.com
6
Pay Slips/Letters of Employment
“As-Is” Process “As-Is” Process Gaps
Customers are required to provided three month pay slips or letter of employment
Increases documentation without necessarily adding value to the credit decision process.
Recommendation
The requirement for pay slips and letters of employment should be scrapped. These documents are currently not used in the credit process as customer financial information are verified via their bank statements; and their employment status are verified by calling their employers.
Findings Cont'd.
www.rencredit.com
7
Direct Debit Mandate
“As-Is” Process “As-Is” Process Gaps
Direct debit mandates are required from all customers regardless of whether they have been signature verified or not
Direct debit mandates that have not been signature verified add unnecessary documentation to the account opening process as they are currently not used.
Recommendation
Currently direct debit mandates that have not been signature verified cannot be used for any transaction. We recommend that only signature verified mandates should be received from customers. In all other cases, only post dated cheques should be received.
Findings Cont'd.
www.rencredit.com
8
Pension Details
“As-Is” Process “As-Is” Process Gaps
Pension statements are currently required for all employed customers
Some employed customers may not have pension accounts; as such, we may turn back potentially good customers away.
Recommendation
For employed customers without pension statement, we recommend that tax cards should be used as a substitute in this instance.
Findings Cont'd.
www.rencredit.com
9
Bank Statements
“As-Is” Process “As-Is” Process Gaps
All Bank statements are collected as long as they have at a minimum been signed by direct sales team leads
There is a risk that we may use inauthentic bank statements in our credit decision process.
Recommendation
Going forward, we recommend that only bank statements that have been stamped by the customer’s bank should be accepted for loan documentation purposes.
Findings Cont'd.
www.rencredit.com
10
Repayment Accounts
“As-Is” Process “As-Is” Process Gaps
Currently, for customers without a current salary accounts, we only accept customers with GT or Skye saving account
Our current process could lead us to turn away potentially good customers.
Recommendation
For customers without current salary bank accounts or salary savings account with either GT or Skye Bank, we recommend that such customers provide guarantors.
Findings Cont'd.
www.rencredit.com
11
Credit Bureau Report
“As-Is” Process “As-Is” Process Gaps
Currently, all potential customer with more than 90 days outstanding are automatically declined at the branch.
We may decline good customers with good credit history who have overdue payment due to technical issues.
Recommendation
For customers with outstanding balance of more than 90 days which is not as a result of personal, auto, mortgage or others should be accepted provided they meet other credit criteria.
Findings Cont'd.
www.rencredit.com
12
Application Process on Experian
“As-Is” Process “As-Is” Process Gaps
Contract Center and Branch sales key applications into Experian
The current process results in duplication of efforts as Branch Sales Advisors sometime start up a fresh application in the instance when telesales customers come into the branch as walk in. In addition to the inefficient use of human resource, it also increases the number of pending applications on Experian and its associated cost.
Recommendation
All application processing on Experian would be centralized at the Branch. Going forward, Contact Centre Advisors should capture customer information on XX template and forward to the Branch for processing on Experian.
Conclusion
www.rencredit.com
13
Documentation
Shorter form for returning customers No need for pay slips or letter of employment No need for direct debit mandate Pension Statement or Tax Card Bank Statements must be verified by Bank Customers without current accounts, GT or Skye Banks
accounts should provide guarantors Some customers with outstanding balance greater than 90
days would be accepted All customer applications will be processed at the Branch
www.rencredit.com
14