LPD provides programs for customizing, improving sales of actual loan portfolio and also, work out the innovative process in creating and launching loan products in the FDI’s markets.

1. The Caribbean Development Bank
United Nations Economic Commission for Latin
America and the Caribbean (UN ECLAC)
Turks and Caicos Islands Investment Agency
“Development Banking in the Caribbean:
Towards a Regional Approach”
Providenciales, Turks and Caicos Islands
November 23-24, 2006

2. Investigación y Análisis Financiero SRL
Revised Issue
April 2014

3. Aurelio R. Susano
ALIDE
Loan Product Development
in Financial Development
Institutions – FDI’s

4. Agenda
• Loan Product Development Concept
• Latin American FDI’s: Actual Practices
on LPD
• Latin American FDI’s: Loan Products
• Overview on LPD

5. Loan Product Development
LPD provides programs for customizing,
improving sales of actual loan portfolio
and also, work out the innovative process
in creating and launching loan products
in the FDI’s markets.

6. Latin American FDI’s:
Actual Practices on LPD
• Two Models: 1st and 2nd floor banking
• Socio - Cultural Environment on FDI’s
• A new perspective on LPD management
• FDI’s performance: Loan Products

7. Latin American FDI’s
Loan Products
• Sector Business Loans
• Personal Loans
• Micro and Small Loans
• Educational Loans
• Infrastructure Loans
• Home Loans
• E-Loans

8. Overview
Roles and responsibilities from:
• Board of Directors
• LPD Management
• Best Practices on Commercial Work

9. Board of Directors (1)
• Corporate values
• Corporate Product Policies
• Market-Product Strategies
• Achieve Supervisory and Regulatory
Compliance

10. Board of Directors (2)
• Corporate values
• These are the ethical principles that lead the
corporate development for having good
business practices
• Corporate Product Policies
• It outlines the guidelines for each of the
products, qualities and the respective
innovations offer on the market to the
satisfaction of the customers

11. Board of Directors (3)
• Market-Product Strategies
• Modalities of how approach the product
through the market to customers for your
satisfaction
• Achieve Supervisory and Regulatory
Compliance
• Get with the products on offer respect for the
regulations and supervision of financial
institutions

12. LPD Management (1)
• Corporate Product system
• Front Office as sales-force
• Middle and Back Office Participation
• Performance and Control

13. LPD Management (2)
• Corporate Product system
• This system establishes the design and
modalities of production of each of the
products of the entity offers on the market
• Front Office as sales-force
• Area of the financial institution dedicated to
the commercialization of products in order to
meet the needs of the customer

14. LPD Management (3)
• Middle and Back Office Participation
• Administrative and technical support areas to
facilitate the arrival of the products offers to
customers by the front office.
• Performance and Control
• A set of management tools that administrative
executives uses to the monitoring and
achievement of goals on the part of the front
office.

15. Best Practices on Commercial Work (1)
Objectives and Strategies
Demand Market and Quality
Innovation and Product Engineering
Budgeting and Product Promotions

16. Best Practices on Commercial Work (2)
• Objectives and Strategies
• Set of purposes and methods of approach of
the product to customers to achieve your
satisfaction
• Demand Market and Quality
• Usual and potential customers for the
products and their respective quality on the
financial institution to be purchased and to
obtain so your satisfaction

17. Best Practices on Commercial Work (3)
• Innovation and Product Engineering
• The design and construction of products
features are due to the requirements of the
market for the satisfaction of customers
• Budgeting and Product Promotions
• All launch and promotion of the products is
subject to necessary resources required in the
market.