PROCESS NOTE CREDIT CARDS
Prepared By
Retail Assets - Credit & Policy Team
Version 1.0
INDEX
Objective Credit Card Process An Overview
Sourcing to Login
Credit Appraisal Credit Decision Post Approval Roles & Responsibilities Abbreviations
CREDIT CARD PROCESS AN OVERVIEW
Post Approval Credit Decision Credit Appraisal Sourcing to login at CSB Stage I Stage II
Stage IV
Stage III
Post Approval
Stage IV
Credit Decision
Credit Appraisal Sourcing to login at CSB Stage I Stage II
Stage III
Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB PROCESS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
Application sourcing as per Banks norms /collection of documents Process Owner/s: Tele Calling Team, X-sell team, DST, DSA Quality Checker/s: Central Sales Backend Staff
DIP check of complete application at the Central Sales Backend
Process Owner/s: Central Sales Backend Staff Quality Checker/s: Sales Manager
FCU Check Process Owner/s: FCU team Quality Checker/s: Hindsighting Team
Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB RISKS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
1/2 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
Contd 7
Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB RISKS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
2/2 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
Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB CONTROLS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
1/3 Employee Related: Quality training to the front end employees/agents Cross checking through tele call/FCU/Market reference check Implement CAPTURE framework C A P T U R E
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Customer Details Attract Purpose Terms Understand Worth Risk Involved Establish Relation
Know Your Customer Through Our USP Nature / Amount / Urgency of funds required Policy Terms & Applicable Charges, communicating MITC Income, Expense, Dependents, any other info Liabilities, Assets, Credit Exposure, any other info Cross Selling, Enterprising, query resolution etc
Contd
Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB CONTROLS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
2/3
ContdEmployee 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
Contd 10
Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB CONTROLS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
3/3
ContdDocument 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
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Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB SYSTEM/REPORT
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
System Integration: Inward entry in Connect Reports generation:
Login details maintained in login register by CSB staff
FCU MIS
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Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB AUDIT CHECKS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
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
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Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB TAT
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
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
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Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB FLOWCHART
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
1/3
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Lead generation system is proposed
Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB FLOWCHART
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
2/3
Inward entry made in Inwarding module on Connect * Application submitted for FCU verification FCU will seal the packet Packet dispatched to Credit HUB Dispatch details to be uploaded by CSB in the inwarding module
Application Form/ Kyc docs collected at CSB
DIP check by CSB
Is Application DIP ok?
N Is FCU hold?
N B Y Is reqd. detail/ document available with customer? Query raised for docs/detail with Sourcing channel/ customer
FCU sample report mailed to Central Credit Team separately
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
END
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* Proposed # Update in Promo code section in Application form
Post Disbursement
Stage IV Stage III
STAGE I: SOURCING TO LOGIN AT CSB FLOWCHART
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
3/3
Case is rejected Rejected application to be stored with Operations
MIS to be updated with proper reject reasons and shared with Sales
Sales team to contact the Customer/Channel for required detail/ documents
Is required detail/ document available as per policy norms? N
Sales to send request to Operations team for scanned copy of documents submitted previously with complete details
END
Document submitted alongwith the scanned docs to be submitted for FCU verification
Y Is FCU hold?
FCU will seal the packet Packet dispatched to Credit HUB Dispatch details to be uploaded by CSB in the inwarding module
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Post Approval
Stage IV
Credit Decision
Credit Appraisal Sourcing to login Stage I Stage II
Stage III
Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL PROCESS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
1/2
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
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Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL PROCESS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
2/2
Customer ID generation Process Owner/s: CPA Staff Quality Checker/s: Hindsighting Team
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Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL RISKS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
1/2 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
Contd 21
Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL RISKS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
2/2
ContdDocument 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
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Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL CONTROLS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
1/2 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
Contd 23
Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL CONTROLS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
2/2
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
Contd 24
Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL SYSTEM / REPORTS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
System : Data entry in Genius Customer ID generation through Flexcube FI dump initiation/ report updation in Genius Reports generated: Login, Reject, and WIP report
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Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL AUDIT CHECKS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
Eligibility calculation Deviation capture Capturing of proper reason for rejection FI/ FCU/CIBIL reports
Process audit to verify TAT (Proposed)
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Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL TAT
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
DIP Check 5 Minutes Data Entry
7 Minutes
CIBIL /Dedupe Check 4 hours Tele Verification 3 Minutes
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Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL TAT
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
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
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Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL FLOWCHART
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
Applications received by Credit CPA Receipt confirmation to be uploaded on inwarding module*
Credit DIP check to be done by Credit- CPA CPA to calculate income eligibility
Y Is the application ok? N B Cust ID generation (*) Is PAN Verified? Y Data entry in Genius PAN Check
N B
Tele verification
N B N Is FI positive? FI initiated by Credit CPA Y Is credit score parameter met? Application score is generated considering CIBIL score and other parameters Y Are CIBIL parameters met? N N D CPA to recommend limit as per system to Credit Manager Approval process initiated File handed to Credit Manager for decision Is TVR positive? Y CIBIL initiated B
Y Is FCU positive? C
E B
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Post Disbursement
Stage IV Stage III
STAGE II: CREDIT APPRAISAL FLOWCHART
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
Case is rejected Rejected application to be stored with Operations
MIS to be updated with proper reject reasons and shared with Sales and Customer care
Reject communication sent to applicant
END
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Post Approval
Stage IV
Credit Decision
Credit Appraisal Sourcing to login Stage I Stage II
Stage III
Post Disbursement
Stage IV Stage III
STAGE III: CREDIT DECISION PROCESS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
Credit Decision Process Owner/s: Credit Team Quality Checker/s: Hindsighting Team
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Post Disbursement
Stage IV Stage III
STAGE III: CREDIT DECISION PROCESS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
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
33
Post Disbursement
Stage IV Stage III
STAGE III: CREDIT DECISION PROCESS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
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
34
Post Disbursement
Stage IV Stage III
STAGE III: CREDIT DECISION SYSTEM / REPORTS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
System Integration: Approval in sanction memo in Genius Reports generated:
Approval and reject report
Hold report Sales to revert & WIP cases
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Post Disbursement
Stage IV Stage III
STAGE III: CREDIT DECISION AUDIT CHECKS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
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
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Post Disbursement
Stage IV Stage III
STAGE III: CREDIT DECISION TAT
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
Credit decision TAT 15 Mins
37
Post Disbursement
Stage IV Stage III
STAGE III: CREDIT DECISION FLOWCHART
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
Credit Manager to reviews the sanction memo
N Are policy parameters met? Y Approve in the sanction memo
Case rejected capturing correct reject reason MIS published by Credit
END
Post approval Y process initiated
To Post disbursement
38
Post Approval
Stage IV
Credit Decision
Credit Appraisal Sourcing to login at CSB Stage I Stage II
Stage III
Post Disbursement
Stage IV Stage III
STAGE IV: POST APPROVAL PROCESS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
Extraction of embossing details & Transfer to embossing vendor. Process Owner/s: Operations Team Quality Checker/s: Hindsighting Team
Collection & storage of undelivered card
Process Owner/s: Operations Team Quality Checker/s: Hindsighting Team
40
Post Disbursement
Stage IV Stage III
STAGE IV: POST APPROVAL RISKS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
1/2 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
Contd 41
Post Disbursement
Stage IV Stage III
STAGE IV: POST APPROVAL RISKS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
2/2 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
42
Post Disbursement
Stage IV Stage III
STAGE IV: POST APPROVAL CONTROLS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
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)
Contd 43
Post Disbursement
Stage IV Stage III
STAGE IV: POST APPROVAL SYSTEM/REPORT
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
System Integration: Extraction of embossing file from Genius Reports generated:
Inward/Outward tracker
Storage report & Reconciliation report
44
Post Disbursement
Stage IV Stage III
STAGE IV: POST APPROVAL AUDIT CHECKS
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
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
45
Post Disbursement
Stage IV Stage III
STAGE IV: POST APPROVAL TAT
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
Dispatch of embossing file to embossing vendor Within next working day post approval
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Post Disbursement
Stage IV Stage III
STAGE IV: POST APPROVAL FLOWCHART
Process Risks Controls System/ Reports Audit Checks
Disbursement
Underwriting Sourcing to login Stage I Stage II
TAT
Flowchart
Operations team will extract the embossing file from Genius
File shared with Embossing Vendor*
Vendor embosses the card
Card is collected by DLB courier vendor and dispatched to customer
N Is customer available? Y
After three attempts the card is returned to Operations team
Card handed to customer
Operations team will receive the card
1/3
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ROLES & RESPONSIBILITIES
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
48
ROLES & RESPONSIBILITIES
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 Decision
Conti
49
ROLES & RESPONSIBILITIES
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
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ABBREVIATIONS
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)
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THANK YOU