PROPOSAL

Creation of Loan Origination System (LOS) Application Administration Unit (AAU) at FUSG
OASC Presentation June 11, 2010

1. What is Loan Origination System 2. Objectives of the Proposed Creation of LOS-AAU 3. LOS-AAU Functions 4. Organizational Chart of FUSG (Existing and Proposed Set-up) 5. Initial Staff Composition of Proposed LOS-AAU 6. Existing Set-Up vis--vis Proposed Set-Up 7. How the Proposed LOS-AAU differed from an ordinary System Administrator of other Application Systems. 8. Advantages of the Proposed Set-Up
ADBS

LOAN ORIGINATION (LOS) System

The LOS is an automated system sponsored by ADBS aimed to:
EXPEDITE SCREENING OF LOAN BORROWERS (aided by internal database verification, on-line link to credit information, frontline facility to test credit risk criteria compliance and quick credit scoring) ENABLE SIMULTANEOUS REVIEW OF LOAN PROPOSALS (thru on-line accessibility of loan applications from front-liners to HO approving authorities) PROVIDE EFFECTIVE CREDIT MONITORING AND SUPERVISION (via automated credit supervision and control checklists, ticklers and instructions)
ADBS

Objectives/Rationale of the Proposed Creation of the LOS-AAU

To ensure smooth implementation of the Loan Origination System (LOS) LOS is a highly-parameterized credit processing system that will require constant updating of the maintainable common codes defined in the system Definition of credit officers (loan approving groups) approval limits is complicated in LOS and needs to be done on a per individual basis

ADBS

LOS-AAU FUNCTIONS
APPLICATION ADMINISTRATION First line of support for LOS system users thru: - telephone assistance - incident reports handling - recommend system enhancements, if applicable Ensure that credit policies are translated into LOS parameters Preparation and implementation of LOS security matrix

ADBS

LOS-AAU FUNCTIONS
Conduct LOS training for system users Issue advisories and bulletins in handling system problems/work-around procedures USER ADMINISTRATION * Handle enrollment, authorized users ID deletion, and reactivation of

* To be proposed to LOS Project Steering Committee. Function is now with SID.

ADBS

Field Unit Support Group (FUSG) Existing Set-Up

Field Units Support Group ( FUSG)
Executive Assistant

ORGANIZATIONAL CHART

MIS & Planning Support Department (MPSD)

MIS & Planning & Domestic Performance Awards Banking GP Evaluation Support Loans Unit Unit Committee (MPEU) (PGASU) (DBLC) Secretariat

Field Operations Support Department (FOSD)

Systems Implementation Department (SID)

Field Field Project Systems SystemsInformation OperationsOperations Development Support Support Security Support Support Unit Unit I Unit II Admin. Unit I Unit II (PDU) (SSU I) (SSU II) Unit (FOSU I) (FOSU II) (ISAU)

ADBS

Field Unit Support Group (FUSG) Proposed Set-Up - 1

Field Units Support Group ( FUSG)
Executive Assistant

ORGANIZATIONAL CHART

MIS & Planning Support Department (MPSD)

MIS & Planning & Lending Performance Awards GP Operations Evaluation Support Support Unit Unit Unit (MPEU) (PGPSU) (LOSU)

Field Operations Support Department (FOSD)

Systems Implementation Department (SID)

Field Field Project Systems SystemsInformation OperationsOperations Development Support Support Security Support Support Unit Unit I Unit II Admin. Unit I Unit II (PDU) (SSU I) (SSU II) Unit (FOSU I) (FOSU II) (ISAU)

DomesticApplica- User Banking tion AdminisLoans Adminis-tration Committee tration (DBLC) Secretariat

ADBS

Field Unit Support Group (FUSG) Proposed Set-Up - 2

Field Units Support Group ( FUSG)
Executive Assistant

ORGANIZATIONAL CHART

MIS & Planning Support Department (MPSD)

Field Operations Support Department (FOSD)

Systems Implementation Department (SID)

Lending Operations Support Unit (LOSU)

MIS & Planning & Project SystemsSystems Field Field Informa-DomesticApplica- User Performance AwardsOperationsOperationsDevelop- SupportSupport tion GP Banking tion AdminisEvaluation Support Support Support ment Unit I Unit II Security Loans Adminis-tration Unit Unit Unit Unit I Unit II (SSU I) (SSU II) Admin. Committee tration (MPEU) (PGPSU) (FOSU I) (FOSU II) (PDU) (DBLC) Unit Secretariat

(ISAU)

ADBS

Proposed Lending Operations Support Unit (LOSU)

ORGANIZATIONAL CHART

HEAD LOSU

Domestic Banking Loans Committee (DBLC) Secretariat

Application Administration

User Administration

ADBS

Initial Staff Composition for the Proposed Creation of the LOS-AAU

AAU Supervisor One (1) Position Item Minimum Pay Grade (PG) 9 QS Equivalent to PG 9 Account Officer (AO)

AAU Maker/CheckerTwo (2) Position Items Pay Grade (PG)6 QS equivalent to PG 6 Account Assistant (AA)
Proposed staff composition must be an existing Account Officer with credit exposure preferably part of the existing LOS Project Team. Annual compensation of the 3 additional staffers is estimated at P1.6M.
ADBS

Existing Set-up vis--vis Proposed Set-up

Existing set-up Handles DBLC Secretariat Team Leader, Application Admin Support Team, Loan Origination System Project Proposed set-up Existing Functions plus LOS-AAU Functions

ADBS

HOW THE PROPOSED LOS-AAU DIFFERS FROM AN ORDINARY SYSTEMS ADMINISTRATOR OF OTHER APPLICATION SYSTEMS
PARTICULARS

LOS

OTHER APPLICATION SYSTEM

Functionality

LOS automates loan processing fromSymbols accounting borrowers loan application to approval. Itsystem that serves as facilitates screening of borrowersloan subsidiary ledger; capacity based on the Banks criteria. Itonly approved loans are also facilitates CFP preparation usinginputted in the system existing parameters defined by the LOSAAU. Parameter set-up will be a continuing daily activity of AAU, unlike in accounting system (e.g., approval authorities of system users)

Parameter Changes

LOS is highly parameterized that any changes or instructions in DBLC and ILEC may need immediate updating of common codes in the system.
ADBS

Advantages of the Proposed Set-Up

Lending Operations Support Unit (LOSU), being the secretariat of DBLC, is well-informed on loan proposals deliberated in DBLC. They can validate/tract the actual loan status against what is on the system LOSU is also aware of the changes in credit policies and can translate these policies into parameters defined in LOC LOSU will serve as first line of support to guide LOS system users in relation to the use of the system and applicability of credit policies

ADBS

For your consideration and approval. Thank you.