Assignment 2 - Student Loan - Customer Acquisition System - Group 2

7/31/2019 Assignment 2 - Student Loan - Customer Acquisition System - Group 2

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CUSTOMER ACQUISITION


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Nakul K.

31/05/2012 Lifecycle Implementation of Banking Products - Group X 2


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The Product Student / Education Loan

Unsecured line of credit

Variable re-payment schedule

High Systematic Risk

Huge market in a global education hub

Acquiring a valuable customer base

Excellent cross-sell opportunities


A student loanis designedto help students pay

for university tuition, books,and living expenses.

Because student loans arefrequently subsidized by

government, interest ratestend to be lower than otherunsecured loanssuchas credit cards and the

repayment schedule maybe flexible.


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Target Customers and Stakeholders

Pre-UniversitySecondary

Post-Secondary

UniversityUndergraduate

Graduate

Doctorate


Pre-UniversityJunior Colleges

Centralized Institute

Institute of Technical Edu

Polytechnics

Nanyang Academy of Fine Arts

LASALLE College of the Arts

University

Partner InstitutionsGuarantorApplicants

RelationParents

Spouse

Non-relationLocal Guardian

Employer
http://www.nus.edu.sg/http://www.sutd.edu.sg/http://www.smu.edu.sg/http://www.ntu.edu.sg/


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Product Features

Online quick-application*

Multiple disbursements

No Collateral required, only Guarantor's

information

Flexible re-payment periods tenure up to8 years

Standard, Interest servicing, partial re-payment schemes

Fixed or floating interest rates



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Customer Acquisition Process

Overview (L0)


APPLICATION

PROCESS

RISK

PROFILING

CREDIT

SCORING

TRANSACT

ION

PROCESSING

UNIVERSITY

CUSTOMER /APPLICANT

CHANNEL

BANK

Extend Offer toCandidate

Applies forEducation loanthrough various

channels

Initial Processingand documentverification,leading topreliminary

checks, approvalor rejection

Risk Profiling of

customer basedon variousattributes, KYC

checks,Calculating

banks exposure

relevant to thecandidate

Credit-

worthiness,Previousengagements,

AML, Black-lists,OFAC, Risk-

based pricing,Perform

Underwriting

Account Creation

Invoice Issued

Request forDisbursement

Initialdisbursement,Progressive

disbursements

Account Creation

and Maintenance


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Vaibhav K. G.



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Roy N. J.



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Risk profile around banking customers who takes education loan iscentred around the loan owner or Students ability to complete the

education and his/her ability to make start earning to repay the loan.

There are various factors that can impact the loan owners ability tocomplete their education and repay the loan to the bank. They canbe divided into internal and external factors.

Internal risk factors:

Degrading health condition

Fail to keep up with the study pace and depth of education materials

Fail to handle the stress from Education demands

External risk factors: Distraction from friends or neighbourhood

Family issues

Educational Institution failed to sustain its operation

Unable to get jobs after finishing the education



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Nandipa S.



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Shreeya C.



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Transaction processing is the process which takes care of

disbursement and update/ retrieval of information from the loanaccount upon its approval.

The process flow:

Once loan is approved the applicant and university are notifiedabout the loan status

Applicant then sends the university invoice and the request fordisbursement specifying the amount and the date of submission

Bank checks the loan account and verifies the request

If the request is as per the contract, the amount is disbursed to the

university and the loan account is updated In case of an exception the disbursement of the loan is kept on hold

till the dispute is settled through several interaction with the bankand the customer



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Assignment 2 - Student Loan - Customer Acquisition System - Group 2

Documents

Transcript of Assignment 2 - Student Loan - Customer Acquisition System - Group 2