Professional Documents
Culture Documents
SCORING
Problem to be addressed:
The consumer loan portfolio has been experiencing rapid expansion in
the last few years. Many banks and financing companies are very
interested in expanding their consumer loan portfolio due to the high
margin that can be obtained. Consumer loan can be a highly profitable
business however it posses certain risks and critical areas that need to
be managed properly.
Objectives:
At the end of the program, the participants are expected to:
Understand the complete flow of credit cycle
Understand the 5 Cs of credit
Understand the benefit of credit scoring vs judgmental lending
Understand the proper use of credit scoring
Understand the stages in development of credit scoring
Understand the proper monitoring method of credit scoring
Understand the critical success factors on consumer lending
Understand the benefit and use of credit test (champion-challenger)
Understand the role of credit policy in consumer lending
Understand mechanism in establishing provision using net flow rate
method
Understand the significance of MIS in consumer lending
Subject Covered:
Overview of consumer lending
Complete flow of credit cycle
5 Cs of credit
Credit scoring VS judgmental lending
Proper utilization and monitoring of credit scoring
Stages in development of credit scoring
Critical success factors in consumer lending
Credit Test (champion-challenger)
Roles of Credit Policy
Fraud Management in consumer lending
Participants:
Compliance officer
Branch Manager