Fundamentals of Consumer Banking

Course Description
This course is the study of the provision of products and services to meet the financial needs of
individuals with a steady and verifiable income flow. This course starts with a survey of
consumer banking, consumer banking products from deposits, and credit cards to mortgage, auto,
house and personal loans, risk assessment related to these loans and followed by an investigation
of mobile / internet banking services, customer asset management system; call centers
effectiveness, and the real-life case study.

Course Objectives and Learning Outcomes

Upon completion of the course you will gain:

 Basic Understanding of Consumer Banking, Banking Business Model

 Emerging Issues in Consumer Banking
 The Nature and Importance of Credit Risk- Largest Source of Bank Losses
 Risk Analysis and Critical Success Factors
 An opportunity to undertake some additional/complimentary learning which could help them
succeed in their work/professional lives, i.e. choosing any occupation/carrier in general or
Banking/Finance in particular

Course Contents:
Consumer Banking (Over view of consumer banking in terms of Micro and macro level), Bank
Business & Operating Model (BOM): An Extended Context. Consumer, Consumer Rights &
Protection, Essentials of Valid Offer, Revocation of Offer, Acceptance Definition, Essentials of
Valid Acceptance, Revocation of Acceptance, Communication of Offer, Acceptance and
Revocation, Key Issues in CB Consumer’s Perspective , Emerging Issues in Retail Banking,
Structure of Bank Credit Risk An Overview, Consumer Financing in Pakistan An Overview,
Auto Financing/Leasing in Pakistan, Bank Schedule of Charges (Creation and calculation of
charges), Case Study: Consumer Financing in Pakistan Issues, Challenges and way Forward
Study / Report, Code of Consumer Banking Practice: Institute of banker Pakistan, Growth
Strategy in Retail Banking, Capturing Consumer Finance Opportunities in, Emerging Markets,
Market-Based Approach for Poverty Reduction (Micro Finance in Pakistan) , SBP prudential
regulations in terms of consumer Banking, Review of Bank credit risk criterions, SBP Risk
Management Guidelines, Housing/Mortgage Finance in Pakistan , Report on : Global Perspective
on Managing Mortgage Profitability Retail Banks at a Crossroad in 2009 Principal Findings,SBP
Operational Guidelines for Credit Cards Business in Pakistan, Building, Consumer Trust in Retail
Payments, Compaction in Consumer banking and strategies for survival

Text/Reference Books:

1. The consumer Banking Regulatory by Price Water house cooper.

2. State Bank of Pakistan (Website for prudential Regulation).
3. Consumer Banking Handouts (Virtual University).
4. Consumer banking by Sefton Anthony Solo man.