Simple Money Solutions

Account Opening Process/Documentation

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Agenda


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Objectives
Key Principles
I
II
Findings
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4
5
Conclusion IV
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 Managements
views and buy-in on
proposed
recommendations
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Key Principles


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Efficiency
Productivity
Speed
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 customers 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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