Credit Card - Process Note

8/6/2019 Credit Card - Process Note

http://slidepdf.com/reader/full/credit-card-process-note 1/52



Prepared By

Retail Assets - Credit & Policy TeamVersion 1.0

PROCESS NOTE – CREDIT CARDS



INDEX

Credit Card Process – An Overview

Sourcing to Login

Credit Appraisal

Credit Decision

Post Approval

3

Objective

Roles & Responsibilities

Abbreviations



CREDIT CARD PROCESS – AN OVERVIEW

4

Stage I

Stage II

Stage III

Stage IV

Sourcing to login at CSB

Credit Appraisal

Post Approval

Credit Decision



Stage I

Stage II

Stage III

Stage IV


Credit Appraisal

Credit Decision

Post Approval





STAGE I: SOURCING TO LOGIN AT CSB – RISKS

7

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

Employee Level:

Improper sourcing

Nexus with customers

Charging invalid commission to customers

Invalid commitments

Breach of confidentiality

Do Not Call (DNC) filter process not followed

Incomplete documents collected from customer

Capturing of wrong information on application forms

Wrong data entry into system

Delay in processing

Process Risks ControlsSystem/

Reports

Audit

ChecksTAT Flowchart

1/2

Contd…



STAGE I: SOURCING TO LOGIN AT CSB – RISKS

8

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

Customer level:

Fraudulent documents/ Misrepresentation on documents

Misrepresentation of facts

Discrepancies in the application form like customer information, contact details etc. either

through typographical error or miscommunication

Documentation Level:

Forged documents / Alterations / Misrepresentation of facts

Incomplete document/Documents mishandling

Non Self attested/ OSV not followed


Reports

Audit

ChecksTAT Flowchart

2/2



STAGE I: SOURCING TO LOGIN AT CSB – CONTROLS

9

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

Employee Related:

Quality training to the front end employees/agents

Cross checking through tele call/FCU/Market reference check

Implement “CAPTURE” framework


Reports

Audit

ChecksTAT Flowchart

C Customer Details Know Your Customer

A Attract Through Our USP

P Purpose Nature / Amount / Urgency of funds required

T Terms Policy Terms & Applicable Charges, communicating MITC

U Understand Worth Income, Expense, Dependents, any other info

R Risk Involved Liabilities, Assets, Credit Exposure, any other info

E Establish Relation Cross Selling, Enterprising, query resolution etc

1/3

Contd…




10

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

Contd …Employee Related

Checklist of questionnaire to be given to front end sales staff

Checklist of documents to be collected given to front end staff

Incomplete document/First time Not Right(FTNR) tracking to be done and same should be used

for performance monitoring and training purpose (Proposed)

Document Related:

Complete Application Form (with photo of Applicant / Add on applicant with signature across

the photo & all mandatory fields to be filled in)

Compulsory FCU check for all documents


Reports

Audit

ChecksTAT Flowchart

2/3

Contd…




11

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

Contd …Document Related

Undertaking /MITC- completely filled

KYC docs as per policy

Self attestation on all the documents mandatory

OSV to be done for all the documents (wherever applicable) by the sourcing channel/personnel

No login to be done for any OSV/Self attestation missing files

MITC copy to be handed over to the customer


Reports

Audit

ChecksTAT Flowchart

3/3



STAGE I: SOURCING TO LOGIN AT CSB – SYSTEM/REPORT

12

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

System Integration:

Inward entry in Connect

Reports generation:

Login details maintained in login register by CSB staff

FCU MIS


Reports

Audit

ChecksTAT Flowchart



STAGE I: SOURCING TO LOGIN AT CSB – AUDIT CHECKS

13

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

Verification of Application forms

KYC policy compliance

Income documents/Other documents as per policy

Undertaking/MITC collected from customer

Self attestation/OSV on all docs


Reports

Audit

ChecksTAT Flowchart



STAGE I: SOURCING TO LOGIN AT CSB – TAT

14

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

Sourcing

Post lead generation, Sales Staff needs to contact the customer within 6 hours

FCU verification

FCU report to be received within 2 working days for sampled cases


Reports

Audit

ChecksTAT Flowchart



STAGE I: SOURCING TO LOGIN AT CSB – FLOWCHART

15

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement


Reports

Audit

ChecksTAT Flowchart

1/3

Lead generation system is proposed



16

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement


Reports

Audit

ChecksTAT Flowchart

2/3

* Proposed

# Update in Promo code section in Application form


Application Form/

Kyc docs collected

at CSB

DIP check by CSB

Is

Application

DIP ok?

Inward entry made in

Inwarding module on

Connect *

Application

submitted for FCU

verification

Is

FCU hold?

FCU will seal the

packet

Packet

dispatched to

Credit HUB

Dispatch details

to be uploadedby CSB in the

inwarding module

1

FCU sample

report mailed to

Central Credit

Team separately

C

N

Y

Y

N

Query raised fordocs/detail with

Sourcing channel/

customer

Is

reqd. detail/

document

available withcustomer?

END

N

Y

B

Application is marked as DIP reject &

DIP reject code updated on Application

Form #

DIP reject file to be uploaded on Connect

MIS shared with Customer Care on daily

basis

Physical application dispatched to Credit

HUB in separate packet 5th

and 20th

of

every month.

Reject letter to be

sent to customer



17

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement


Reports

Audit

ChecksTAT Flowchart

3/3


Case isrejectedRejectedapplication tobe stored

withOperations

Sales team to contactthe Customer/Channel

for required detail/ documents

Isrequired detail/

document availableas per policy

norms?

Document submittedalongwith the scanneddocs to be submittedfor FCU verification

IsFCU hold?

FCU will seal thepacketPacket dispatched toCredit HUBDispatch details to beuploaded by CSB inthe inwarding module

Y N

Y

B

MIS to be updatedwith proper reject

reasons andshared with Sales

Sales to send request toOperations team for

scanned copy ofdocuments submitted

previously withcomplete details

END

N



Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Credit Appraisal

Credit Decision

Post Approval



STAGE II: CREDIT APPRAISAL – PROCESS

19

DIP Check

Process Owner/s: Credit CPA

Quality Checker/s: Credit Manager

CIBIL check/ Tele verification/Eligibility calculation

Process Owner/s: Credit CPA

Quality Checker/s: Credit Manager/Hindsighting Team

Field Investigation (FI)

Process Owner/s: CPA Staff

Quality Checker/s: Credit Manager/Hindsighting Team


Reports

Audit

ChecksTAT Flowchart

1/2



STAGE II: CREDIT APPRAISAL – PROCESS

20

Customer ID generation

Process Owner/s: CPA Staff

Quality Checker/s: Hindsighting Team


Reports

Audit

ChecksTAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

2/2



STAGE II: CREDIT APPRAISAL – RISKS

21

Employee Level:

Delay in processing

Miscalculation of eligibilities

Missing crucial information by oversight

Customer Level:

Incomplete, improper or wrong information

Document Level:

Incomplete documentation and details


Reports

Audit

ChecksTAT Flowchart

1/2

Contd…

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE II: CREDIT APPRAISAL – RISKS

22

Contd …Document level

Loss of application/documents, Mishandling of documents

Fraudulent documents (like doctored PAN cards)

Documents missed through oversight

Third Party Vendor Level:

Misleading or incorrect information and opinions from Third Party Vendors / Advisors /

Consultants

Breach of confidentiality during third party check

Improper behavior or non-cooperation with customer


Reports

Audit

ChecksTAT Flowchart

2/2

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE II: CREDIT APPRAISAL – CONTROLS

23

Employee Related:

Quality training to the front end employees

Credit CPA should cross verify the critical fields filled by Sales staff

Strict adherence to TAT laid down for each process/sub-process

Customer related:

Third party confirmation/reference checks

Proper information to be collected from customer at the time of sourcing

Other process related:

FI & CIBIL to be initiated only post positive internal dedupe


Reports

Audit

ChecksTAT Flowchart

1/2

Contd…

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE II: CREDIT APPRAISAL – CONTROLS

24

Contd…

FCU screening compulsory for all cases. Every document checked to be stamped as FCU

screened/sampled

Original docs to be checked at the time of sourcing. OSV on documents by Sales staff

At the time of sourcing the sales representative must inform the customer that verification of

details given by him will be done

Third party related:

For FI agency

Various agency level seeding activities will be done by FCU team


Reports

Audit

ChecksTAT Flowchart

2/2

Contd…

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE II: CREDIT APPRAISAL – SYSTEM / REPORTS

25

System :

Data entry in Genius

Customer ID generation through Flexcube

FI dump initiation/ report updation in Genius

Reports generated:

Login, Reject, and WIP report


Reports

Audit

ChecksTAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE II: CREDIT APPRAISAL – AUDIT CHECKS

26

Eligibility calculation

Deviation capture

Capturing of proper reason for rejection

FI/ FCU/CIBIL reports

Process audit to verify TAT (Proposed)


Reports

Audit

ChecksTAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE II: CREDIT APPRAISAL – TAT

27

DIP Check

5 Minutes

Data Entry

7 Minutes

CIBIL /Dedupe Check

4 hours

Tele Verification

3 Minutes


Reports

Audit

ChecksTAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE II: CREDIT APPRAISAL – TAT

28

Customer ID generation

1 working day

FI agency

FI to be received within 24 hours within city limits

Sales Query

Resolution within 1 working day


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE II: CREDIT APPRAISAL – FLOWCHART

29


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

1

Applications received by

Credit – CPAReceipt confirmation to

be uploaded oninwarding module*

Credit DIP check to be

done by Credit- CPACPA to calculate income

eligibility

Isthe application

ok?

Data entry inGenius

PAN Check

CIBIL initiatedFI initiated byCredit CPA

Are

CIBILparameters

met?

IsTVR positive?

IsFI positive?

B

CIs

FCU positive?

Y

Y

N

B

N

Y

N

Y

N

Application score

is generatedconsidering CIBIL

score and otherparameters

Is

credit scoreparameter

met?

N

Y

B

Cust ID generation(*)

B

D

N

Y

CPA to recommend limit asper system to Credit Manager

Approval process initiated

File handed to CreditManager for decision

E

Tele verification

Is PANVerified?

B

N

Y



STAGE II: CREDIT APPRAISAL – FLOWCHART

30


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

Case is rejected

Rejected

application to be

stored withOperations

D END

Reject

communicationsent to applicant

MIS to be updatedwith proper reject

reasons and sharedwith Sales and

Customer care



Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Credit Appraisal

Credit Decision

Post Approval





STAGE III: CREDIT DECISION – PROCESS

33

Employee Level:

Capturing of wrong Customer ID

Data capture errors

Appropriate approvals not taken

Documentation Level:

Fraudulent documents submitted

All the undertakings/documents as per policy not in place

FCU /FI/CIBIL report validity

Documents lost in transit


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE III: CREDIT DECISION – PROCESS

34

Employee Related:

Proper training

Adherence to Non discrepancy Checklist (NDC)

Strict adherence to TAT laid down for each process/sub-process

Document related:

Credit Manager to verify all the documents

Cross check the validity and status of reports


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE III: CREDIT DECISION – SYSTEM / REPORTS

35

System Integration:

Approval in sanction memo in Genius

Reports generated:

Approval and reject report

Hold report – Sales to revert & WIP cases


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE III: CREDIT DECISION – AUDIT CHECKS

36

Approval is recorded as per the Authority

NDC done by OPS is as per the Process

Capturing of proper reason for rejection/cancel

Process audit to verify TAT


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE III: CREDIT DECISION – TAT

37

Credit decision TAT

15 Mins


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE III: CREDIT DECISION – FLOWCHART

38


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

To Post disbursement…

Approve in the sanctionmemo

Are policyparameters

met?

Case rejectedcapturing correctreject reasonMIS published byCredit

END

YPost approval

process initiated

F

Y

N

Credit Manager to reviews thesanction memo

E



Stage I

Stage II

Stage III

Stage IV


Credit Appraisal

Credit Decision

Post Approval



STAGE IV: POST APPROVAL – PROCESS

40

Extraction of embossing details & Transfer to embossing vendor.

Process Owner/s: Operations Team


Collection & storage of undelivered card

Process Owner/s: Operations Team



Reports

Audit

Checks

TAT Flowchart



STAGE IV: POST APPROVAL – RISKS

41

Employee Level:

Delay in processing

Mishandling of card

Breach of confidentiality

Wrong data entry into system

Tampering of documents

Improper storage of documents

Documents tampering

Storage security


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

1/2

Contd…



STAGE IV: POST APPROVAL – RISKS

42

Customer Level:

Customer not contactable for card delivery

Document Level:

Loss of card in transit

Improper storage leading to missing documents

Card handover to unauthorized person


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

2/2



STAGE IV: POST APPROVAL – CONTROLS

43

Employee Related:

Quality training to the employee

Audit by hindsighting team

Proper tracker and hand-off sheets maintained for internal/external movement

Customer Related:

Verification of identity proof at the time of card hand over

Document Level:

Any returned card to be immediately sent for safe storage

Storage audit to be carried out (Proposed)


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

Contd…



STAGE IV: POST APPROVAL – SYSTEM/REPORT

44

System Integration:

Extraction of embossing file from Genius

Reports generated:

Inward/Outward tracker

Storage report & Reconciliation report


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement



STAGE IV: POST APPROVAL – AUDIT CHECKS

45

Verification of Applications

Document condition & safety

Storage security

Barcode data authenticity for retrieval

Reconciliation of files sent for storage

PDD monitoring & audit

FCU screening of PDD


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

St IVP tDi b t



STAGE IV: POST APPROVAL – TAT

46

Dispatch of embossing file to embossing vendor

Within next working day post approval


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

StageIVPostDisbursement



1/3

STAGE IV: POST APPROVAL – FLOWCHART

47


Reports

Audit

Checks

TAT Flowchart

Stage I

Stage II

Stage III

Stage IV

Sourcing to login

Underwriting

Disbursement

Post Disbursement

Operations teamwill extract theembossing filefrom “Genius”

File shared withEmbossing

Vendor*

Vendor embossesthe card

Card is collected byDLB courier vendorand dispatched to

customer

Is customeravailable?

Card handed tocustomer

After threeattempts the card

is returned toOperations team

Operations teamwill receive the

card

N

Y

F



ROLES & RESPONSIBILITIES

48

Sales Complete credit card application form collection from Customer including self attestation

KYC Documents Collection

Income, Surrogate Document collection as per Policy

OSV checks

DIP checks by Sales Backend

Preparation of Hands off sheet

Submission of completed credit card application form to FCU

Queries resolution from FCU and ISG

FCU

Screening or sampling based on FCU internal criteria

Queries cases forwarded to Sales Team for resolution

FCU screen cases forwarded to Credit Hub

FCU sample cases mailed to Credit Hub

Conti …




49

DCS Customer ID generation

ISG

Credit Card application DIP check as per the Policy norms

Annual Income calculation

Credit Card application inwarding in the system PAN validation through NSDL site

Initiate CIBIL and review complete CIBIL report basis score and other parameters

Conduct TVR for all positive CIBIL cases

Initiate FI for all CIBIL and TVR positive cases

Prepare Approval / Sanction memo

Submit complete credit card applications with approval / sanction memo to Credit Manager for decisioning

Generation of various MIS reports namely:

- Inward applications

- Discrepant cases

- CIBIL status

- FI status

- Credit DecisionConti …




50

Credit Ensure CIBIL and FI reports are checked before credit decision

Review all completed credit card applications and decision for approval or decline

Assign credit limit basis Policy and exposure reflected in CIBIL

Hand over of decisioned credit card applications to ISG / Operation

Operation Ensure decline letter is forwarded to all applicants whose application is declined

Credit Card number generation

Embossed / PIN file generation

Embossing file upload

PIN printing and dispatch

VBV file upload

Uploading of Pick up file

Credit Card dispatch through Courier

Credit Card activation

Credit Card application scan copies and storage of credit card application



ABBREVIATIONS

51

CM- Credit Manager

SM – Sales Manager

CPO –Credit Processing Officer

TAT – Turn Around Time

NDC- No discrepancy Checklist

FI – Field Investigation

FCU – Fraud Control unit

PDD – Post Disbursement Documents

OTC – Over The Counter

CAS – Customer Acquisition System

OSV – Original Seen And Verified

VBV – Verified By VISA

ISG – Service Provider (Credit/Operations CPA)



THANK YOU…