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Course Outline
Module 1
- Analysis of Personal Lending Propositions
- What information must customers provide to us?
- What additional information should customers provide to us?
- How do we analyze this information to verify its authenticity?
- CAMPARI as a Mnemonic for Analyzing Personal Lending Propositions
- Character: What do we know about the customer, such as their track record with the bank and previous loan history?
- Ability: Where are the repayments coming from? What "spare" cash does the customer have to finance loan repayment?
- Margin: What is the appropriate interest rate for the lending? This is the "rent" we ask the customer to pay for our money, reflecting the degree of risk.
- Purpose: Why does the customer want the loan? Is it for an acceptable purchase that aligns with bank policies, and is the repayment period appropriate?
- Amount: How much does the customer wish to borrow? Are they contributing anything towards the purchase price or are we lending 100%?
- Repayment: What is the repayment schedule, and can the customer maintain these payments for the duration of the loan?
- Insurance: What security (collateral) do we expect to be offered? How easy will it be to perfect this security, providing the bank with the "insurance" it requires?
Module 2
Interaction Between Lender and Customer
- Understanding Behaviors
- How are our behaviors shaped by previous interactions, both within and outside the bank?
- How are customer behaviors influenced by various interactions?
- How can we ensure that we understand customer behaviors and, equally important, that they understand ours?
- Effective Communication
- What constitutes effective communication?
- How does first impressions impact effective communication?
- How do different modes of communication (face-to-face, audio, email, etc.) affect effective communication?
- Building and Maintaining Rapport
- Understanding Emotional Intelligence in building and maintaining rapport with customers—and colleagues.
- Applying Goleman’s 5 steps to Emotional Intelligence in customer interactions:
- Self-Awareness
- Self-Management
- Motivation
- Empathy
- Social Skills
- The levels of rapport and how to achieve them.
- The Berne model of communication and its link to rapport.
- Interview Techniques
- Obtaining the necessary information.
- Verifying the accuracy of that information during discussions.
- Addressing ambiguities or information that seems incorrect.
- Asking for and offering alternatives.
- Effective listening techniques.
Module 3
- Making the Decision
- How do we arrive at the correct decision?
- Balancing pros and cons.
- Re-analyzing the CAMPARI information.
- Structuring the Lending
- Setting up the loan to meet the optimal "shape" of the loan:
- Optimal for the bank
- Optimal for the customer
- Creating and finalizing the necessary documents before advancing funds.
- Setting up the loan to meet the optimal "shape" of the loan:
- Insurance
- What security does the bank consider appropriate for this lending?
- Is the bank willing to lend unsecured?
- Why not?
- What security can the customer offer?
- How does the bank perfect the security to ensure adequate protection in case of default?
- ...and Ensuring Repayment!
- Establishing an appropriate monitoring process for the loan to ensure timely repayment.
- Determining actions if repayment deviates from the agreed schedule.
- At what stage should we become concerned?
Module 4
- Monitoring the Lending Portfolio
- What regular monitoring processes should the bank implement for the entire lending portfolio?
- Identifying early-warning signs that the bank should look for.
- Determining when these early-warning signs indicate a loan is out of compliance.
- Customer Interactions (Revisited)
- How does the bank communicate with the customer once the lending is not performing as agreed and expected?
- How must the communication process change from the initial discussions when the loan was being considered?
- Revised interview techniques.
- Negotiation Skills
- What steps are required to negotiate with the customer for the best possible solution, benefiting both the customer and the bank?
- Understanding IVCs (Inexpensive Valuable Concessions) and WAPs (Walk Away Positions) available to the bank in reaching an agreement.
Module 5
- Bad and Doubtful Debts
- How does the bank determine that a loan is now "bad"?
- What steps are required to achieve repayment?
- What has changed with the information from the original CAMPARI assessment?
- Conducting a current CAMPARI assessment.
- How can the bank learn from previous assessments, which in hindsight may have been incorrect?
- How should the bank re-schedule the loan agreement?
- When should the bank begin to realize its security?
- What legal recourse does the bank have to compel customer repayment?
(Optional) Module 6
The course can also include analysis and decision-making for small-business lending, specifically for sole traders, partnerships, and unincorporated entities.
- Including the assessment of traditional sources of financial information through Balance Sheets, Profit & Loss Accounts, and Financial Forecasts.
21 Hours
Testimonials (7)
I generally enjoyed the activity after each topic.
JOCELYN BARTOLOME - Innovative Investors & Financing Co., Inc.; Innovative Investors & Financing Co., Inc.
Course - Credit Risk Management for Consumer Lending
All the topics are all informative and related to our daily life and work. So its really very helpful and useful .
EMMA GABRIEL - Innovative Investors & Financing Co., Inc.; Innovative Investors & Financing Co., Inc.
Course - Credit Risk Management for Consumer Lending
I obtained a lot of information in my line of work most especially about leadership and how our system works.
HERMAN TENORIO - Innovative Investors & Financing Co., Inc.; Innovative Investors & Financing Co., Inc.
Course - Credit Risk Management for Consumer Lending
The most like about the training is about the workshop so that we apply what i have learned about the topic.
Janette Base - Innovative Investors & Financing Co., Inc.; Innovative Investors & Financing Co., Inc.
Course - Credit Risk Management for Consumer Lending
Doing the case study was particularly helpful. The self awareness bit was an eye opener. All in all a great training session.
Zandrea Cabal - Innovative Investors & Financing Co., Inc.; Innovative Investors & Financing Co., Inc.
Course - Credit Risk Management for Consumer Lending
I genuinely was benefit from the group activity.
LOLITA DELA PENA - Innovative Investors & Financing Co., Inc.; Innovative Investors & Financing Co., Inc.
Course - Credit Risk Management for Consumer Lending
I really was benefit from the campari / TRUST FORMULA.
