Submitted To : Prof Rajesh Jain Submitted by : Shalin Shah

Established

in 1937 to encourage overseas banking and foreign exchange operations. Based in Chennai

Over 1,400 domestic branches and 6 branches abroad. About 500 ATMs all over India

International

VISA Debit Card accepted at all ATMs belonging to the Cash Tree and NFS networks

 Started

with CANCARD-Visa - now been discontinued In 2006 introduced its own international credit card in association with Visa Two types of cards

IOB Gold IOB Classic

Interest

charged is 16% per annum The minimum card limit is Rs 10,000 and the maximum credit limit is fixed at Rs 5 lakhs Penetration low : 50000-100000 cards currently

 Holistic

understanding in terms of applying business process management in a real-life scenario (AS IS ) model of providing credit cards to the various customers of IOB
existing bottlenecks

Study

Analyze Suggest

methods to improve upon the same with the help of a To-Be process flow model

 Data

Sources

Direct observation at the Indian Overseas Bank Hinjewadi branch

Interviews with the employees handling the process

Interview with the Branch Manager Meeting with a few customers who were present at the bank at the time of visit.

Quick Processing of the Application

Setting Credit Limits based on needs of the customer

Regular Updates on the status of Application

Making the process hasslefree in terms of lesser trips to the banks and efficient verification system

STEP 1: Submitting Application form and other supporting documents

Personal Particulars Employment Details Property Details Bank Details Financial Details Other Supporting Documents Required

STEP 2: Checking the completeness of the application form and other documents
STEP 3: Entering applicant details in Centralized repository STEP 4: Sending forms and documents for KYC Compliance Check STEP 5: KNOW YOUR CUSTOMER Compliance Check

STEP 6: Credit Scoring Procedure

STEP 7: Printing Cards and Generating Identity codes by Vendor STEP 8: Dispatching credit cards and PIN codes by vendor
STEP 9: Receipt of the sealed letter containing PIN code STEP 10: Receipt of credit card by applicant

Terms and Conditions attached along with the application form Applicant has to agree to these terms before processing can start. Key points covered:

Card Validity and Cardholders Obligation ATM Usage Usage at Merchant Establishments Payment of Dues Loss/Damage of Card Hot Listing of Cards Jurisdiction Termination of Card Facility Disclosure of Information Conditions with respect to Monthly Bills, communications from the bank, information about the applicant etc.

Credit card applicant :

To submit a completed application along with all the necessary documents as mentioned by the bank. To submit the pin and collect the credit card when an intimation is sent by the bank. Checks for the completeness of the application form and availability of all the necessary documents. Creates a record for a new customer in the central repository which contains all the personal, financial and business details of the customers. For an existing customer he/she updates the existing records. Updates the customer on the status of the credit card issuance process. Intimates the customer on receipt of the credit card and issues the credit card to the customer

Sales Representative:

Clerk:

Sends the application form and the relevant documents to the Regional Office located in Mumbai.

Back Office Employee:

Performs a systematic KYC compliance check. Assigns a credit score to the customer by performing a credit history check on the customer. Mails the result of the credit scoring (type of card to be issued/rejection) to the concerned authority.

Credit card manufacturer/Vendor:

Manufactures the credit card, sticks a magnetic strip to the card for unique identification and generates a ten digit unique pin code. Mails the pin to the customer and the card to the bank.

The time taken by the applicant to submit the completed form

Depends on the clear transfer of information to the customer. No. of visits made by the applicant to the branch office

The time taken and accuracy of verification of the application. Time taken for KYC compliance check. Accuracy of the KYC check.

Could be measured by number of defaulters

Turnaround time for card delivery. Increase in Sales of Credit cards.(not in scope)

Depends on satisfaction of existing customers Sales strategies adopted by sales representatives

No check list in place at the branch office resulting in inconvenience for applicants Form checking by sales representatives not done properly
Excessive manual processing resulting in high probability of error occurrence and higher processing time Chance of subjectivity - influencing the score given since it is a manual process Lack of transparency The customer currently is not well informed of the status of credit card issuance process

 Automating

the credit scoring process Outsourcing the credit sourcing process Maintaining and updating the status of the credit card application Maintaining a checklist of important documents

 Introducing

a new column in the customer database called credit_card_issuance_status which would be updated by the bank officials so that the customer can know the status of the card at any point of time Introducing a MIS which would automate the credit scoring process Introducing a rules engine for accurate and faster decision making

 Faster

Turn Around Time in processing of card applications Ensuring better transparency in the entire process Reducing inefficiencies and scope of manual errors in the process through MIS implementation Efficient Verification System through rules engine Increased Customer Satisfaction

 Aggressive

Marketing Strategies for making the employees as well as the customers more aware of the benefits of credit cards Introducing the rewards points system Tie-ups with leading retailers for better promotion Customization of cards Recovery agents need to be put in place for credit defaults