Simple Money Solutions

Account Opening Process/Documentationwww.rencredit.com

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Agenda

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Objectives

Key Principles

I

II

Findings

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4

5

ConclusionIV

III

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2

Objectives

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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

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Key Principles

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4

Efficiency ProductivitySpeed

Control

Simplicity

Convenience

KYC

Findings

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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

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