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Loan Applications using Netbooks

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Transcript

  • 1. Processing
of
Loan
Applica1ons
 
Using
Net
Books
 Reggie
Ocampo
 First
Macro
Bank
 2010
RBAP‐MABS
Na.onal
Roundtable
Conference
 Hya=
Hotel
and
Casino,
Manila
 June
3,
2010

  • 2. Credit
Scoring
System
 •  In
2005,
in
partnership
with
IPA,
FMB
Implemented
 Credit
 Scoring
 System
 in
 processing
 of
 loans
 for
 its
 microfinance
 opera.ons
 par.cularly
 with
 its
 Individual
Lending
Program
(UNLAD).

 •  Loan
 decisions
 are
 made
 through
 the
 use
 of
 Computer
SoSware‐the
System
tells
whether

a
Loan
 Applica.on
is
denied
or
approved.
 •  Weights
used
where
based
on
the
interviews
among
 Bank
 Staff
 regarding
 their
 considera.ons
 in
 approving
a
loan.

  • 3. 2009
Second
Phase
of
CSS
Study

 IPA
recommended
the
use
of
mobile
device
in
the
facilita.on
of
 the
Credit
Scoring
System.
 Ini.al
idea
is
to
use
PDA’s,
but

 because
of
its
limita.ons
to
run

 different
kinds
of
soSware,

 netbooks
were
used

instead.

 
 Credit
Scoring
Model
is
now
based
on
Historical
Data
of
all
Loan
 Applica.ons
from
2006
–
2008,
not
on
percep.on
of
bank
 staff
making
loan
decisions
more
objec.ve.


  • 4. Advantages
of
doing
CSS
on
Netbooks
 •  Portability:
 


‐
Allow
most
of
loan
applica.on
to
be
conducted
in
field
 leading
to
reduc.ons
in
travel
.me
and
data
entry.
 •  Data
Quality:

 

‐
SoSware
has
checks
for
most
variable
and
field
entries
that
 can
improve
consistency
and
quality
of
loan
applica.on
data.
 •  
Ease
in
encouraging
clients
to
get
documentary
 requirements.
 

‐
Since
Loan
Applica.on
is
pre‐approved,
clients
are
easily
 encouraged
in
ge^ng
their
loan
requirements.
 •  Expedites
Loan
Applica>on
Process
 

‐
In
about
30
–
45
minutes
client
can
be
able
to
know
the
ini.al
 result

of
loan
applica.on
 

‐
Hassle
Free
in
filling
up
of
Loan
Applica.on
Form
for
clients.

  • 5. Advantages
of
doing
CSS
on
Netbooks
 •  Loan
approval
and
impact
surveys
are
done
at
the
 same
>me
 ‐  Interest
Rate
and
Loan
Usage
Study
 ‐



Progress
out
of
Poverty
Index
(PPI)
 •  Reduce
paper
work
for
field
officer

 ‐  Loan
report
are
ready
to
print
for
each
applica.on
 •  Automated
Calcula>ons
on
Worksheets
and
 Cashflows.
 ‐  Enables
account
officers
to
do
CI/BI
reports
faster
 •  Integra>on
of
Audio
Visual
Presenta>ons
 



‐
Can
be
used
for
promo.onal
/
financial
literacy
/
cross‐selling
 
 purposes

(regulated
and
controlled
presenta.ons)

  • 6. Expected
Benefits
in
doing
Credit
Scoring
 •  Reduced
Reliance
on
Credit
CommiLees:
 
 Inclusion
of
credit
score
component
makes
objec.ve
assessment
 of
candidates
based
on
specific
characteris.cs.
Reduces
reliance
 and
.me
spent
by
supervisors
and
credit
commi=ees
in
reviewing
 new
loan
applica.ons.
 •  Improved
Approve/Deny
Decisions:
 
 Credit
score
model
should
help
to
increase
the
actual
quality
of
 approve/deny
assessments.
 •  Improved
Produc>vity
of
Account
Officers
 
 By
having
a
reliable
Credit
Scoring
System,
AO’s
can

concentrate
 more
on
marke.ng,
helping
the
bank
to
generate
more
clients.
 •  Gives
a
complete
informa>on
on
who
your
clients
are
 
 All
loan
applica.ons
are
recorded
on
a
database

  • 7. Loan
Process
Flow

 Field
Marke.ng
 Ask
and
Validate
 Eligibility
Criteria
 Conduct
Interview
using
 Netbook
 Loan
Disbursal
 Conduct
Background
Inves.ga.on
and
 Field
Valida.on
 Hand
in
Authoriza.on
le=er
and
 Discuss
the
Required
Documents
 Market
Other
Bank
 Products
 APPROVED DENIED Inform
the
applicants
that
s/he
could
 re‐apply
aSer
90
days.
 YES NO Interested?

  • 8. Screenshots
of
the
Credit
Scoring
 SoSware

  • 9. Log
–
in
Window
 List
of
CSS
 IDs

  • 10. Warning
and
Display
Messages
   Response options for fields that have dropdown options, type the corresponding number of the answer and click “Enter”   Entered value is not in the given options or beyond the set values   Important field that should be filled in. Cannot proceed to the next field unless the current field has been filled in.   Displays at the end of each form. Allows the AO/AS to review the information before going to the next form.   Displays when AO/AS entered an applicant’s name that has been recorded already.   Displays at the end of the application. Need to press “F8” to save the application.   Warning message when AO/AS tries to enter a previously denied client within less than 90 days.   Warning message in cash flow section if a field is left missing.
  • 11. Personal
and
HH
Informa.on

  • 12. Business
Informa.on

  • 13. Cash
Flow
and
Loan
Result

  • 14. AO
doing
CI/BI
using
Netbook

  • 15. Feedbacks
from
AO’s
 Pros
 •  Doing
paper
work
is
reduced
 giving
us
more
.me
doing
 other
tasks.
 •  I‐rate
helps
us
encourage
 prospected
clients
to
take
up
 loans,
especially
when
they
 get
a
lower
interest
rate.
 •  Clients
are
impressed
with
the
 net
books,
a=rac.ng
other
 prospected
clients
for
a
trial.
 Cons
 •  If
the
applica.on
is
denied,
 clients
are
suspicious
about
 the
correctness
of
the
data
 entered.
 •  It
is
hard
to
explain
to
client
 why
their
applica.on
is
 denied.
 •  Risk
of
being
robbed.

  • 16. Limita.ons
 •  Credit
Scoring
System
cannot
replace
a
skilled
 and
responsible
Account
Officer.
The
result
of
 a
 Loan
 Applica.on
 relies
 on
 the
 correctness
 and
 truthfulness
 of
 the
 data
 being
 entered.
 The
system
only
helps
in
expedi.ng
the
loan
 process
 and
 guides
 us
 with
 the
 level
 of
 risk
 involved
 in
 lending
 to
 a
 par.cular
 kind
 of
 client.

  • 17. THANK
YOU!