December 2023

Table of Contents

❑ Overview ❑ Trade Finance

▪ Organization Structure ▪ Snapshot
▪ Products In-Scope ▪ L1 & L2 Process Activities & Deep Dive Assessment
▪ Assessment Methodology ❑ Onboarding – KYC & Sanction Screening
▪ Existing Product Assessment - Summary
▪ Snapshot
❑ Product Prioritization Framework ▪ L1 & L2 Process Activities & Deep Dive Assessment
▪ Prioritization Framework ❑ Loan Processing
▪ Detailed Assessment Framework
▪ Snapshot
❑ Assessment ▪ L1 & L2 Process Activities & Deep Dive Assessment
▪ Assessment Output - Summary ❑ Annexures
▪ Assessment Output

❑ Payments
▪ Snapshot
▪ L1 & L2 Process Activities & Deep Dive Assessment
Overview
 In Scope
Organization Structure Out of Scope
Department
Head of Internal Board Audit Ethical Walls

Office of the
Chief of Staff2 Audit Committee

President
Senior
Management
AU, AfCTA & Int.
Cooperation

Group Management President Communication and

Office1 Events

EVP, Legal, Corporate MD, Risk

EVP, Global Trade EVP, Intra-African Senior Executive Vice EVP, Finance & MD, Strategy & MD, Human
services and Executive Management &
Bank Trade Bank President (SEVP) Banking Service Secretary
Innovation Resources
Chief Risk Officer

MD, Trade Finance & Intra-African Trade & MD, Export Dev’t MD, Group Chief Banking Legal Strategic Planning &
Compliance Product HR Operations
Corr. Banking Investment Finance Bank2 Financial Officer Services
Development
MD, Coverage and
Guarantees & Trade Facilitation MD, Banking Corporate Legal Credit Risk Development Impact Learning &
Regional
Specialised Finance and Advocacy Operations Services Management Assessment Performance
Distribution3

Syndication & Risk MD, Chief Information Market & Liquidity Organisational Afreximbank
CANEX & Diaspora Board Secretariate
Distribution Economist4 Technology Risk Management Architecture Academy

Trade Information Digital Solutions MD, Group Treasury Operational Risk Organisational
Credit Assessment Equity Mobilisation Innovation
Services & Markets5 Management Effectiveness

Advisory and Capital Enterprise Risk HR Shared Services

Protocol Service
Markets Management & Regional Offices
Notes (Interim Reporting Arrangements pending appointments of (SEVP):
1. The Senior Executive Vice role to be implemented in due course at the
President’s discretion Administrative
Loan Remediation
2. The MD, Export Development Bank to report to the President in the interim Services
3. The MD, Coverage & Regional Distribution to report to either the EVP, GLTB
or EVP, IATB at the discretion of the President in the interim Agency & Security
4. The MD, Chief Economist to report to the President in the interim Trustees
5. The MD, Group Treasury & Markets to report to the Executive Vice President,
Finance & Banking Services in the interim
Products In-Scope

Trade Finance
Loan Processing
▪ Letter of Credit (LC)
▪ Credit Assessment
▪ Standby Letter of Credit (SBLC)
▪ Loan Administration
▪ Irrevocable Re-imbursement
Undertaking (IRU)
▪ Bank Guarantees (BG)
▪ Export LC Advising

Payments Onboarding
▪ AfPay (Re-Route) ▪ KYC/ Re-KYC
▪ Outward/ Inward ▪ Sanction Screening
▪ Queries
▪ Fixed Deposit
▪ Account Management
 Assessment Methodology (1/2)
Understand the current landscape
across different products and
processes
• Conduct walkthroughs of current
processes across different
products – Trade Finance,
Payments, Credit and KYC/
Onboarding
• Product and process
rationalization – To ensure process
alignment before progressing with
a re-design of the operating
model (captive vs. outsourcing
feasibility)
• Questionnaire to obtain complete
information and validate the
information received through
walkthroughs
L1- Business process
L2- Business sub-process
Identify attractive
activities (L1)
(top-down assessment)
• Identify and map L1 value chain
activities
• Establish a product process
prioritization matrix to score L1
activities
• Apply the framework for each in-
scope products and its L1
activities
Prioritize sub-activities (L2) Detail out and Finalize
within attractive L1 Prioritization for Products
activities and Processes
• Define L2 sub-activities for each • Finalize prioritized products and
priority L1 activity identifying processes for outsourcing
differences across products
• Assess L2 sub-activities leveraging
established outsourcing feasibility
framework
• For select L1/L2 activities,
assessment will vary by product
• Identify highest priority L1 and L2
activities
• Identify and group overlapping
priority activities and sub-
activities across the products and
processes
• Prioritize L1/L2 activity groupings
based on pre-defined criteria
 Assessment Methodology (2/2)

Questionnaire Contents Process Walkthroughs

Customer Interaction Sl.

Workshop Date FPR
• Meeting Preference • Frequency of Interaction No.
• Communication Mode Business Overview, Operating
1 01-Sep Kwabena Ayirebi
Stakeholders Model and Organization Structure
18-Aug
• Clientele Base (Government, FIs Corporates and others) 2 Trade Finance Ernest Yao Ahiagbe
23-Aug
18-Aug
Process / Systems 3 Payments Ernest Yao Ahiagbe
23-Aug
• FTR/ FTNR • Disaster Recovery
30-Aug
• System Downtime • Average TAT 4 KYC/ AML /CFT – Compliance Sammy Chilunga
14-Sep
People Capabilities Client Relations Call Centre
• Team Overview • Language Mandate 5 31-Aug Abdalla
Origination Middle Office
• Hiring Criteria (Skill-set) • Overseas Employees 6 Credit Process 13-Sep Lloyd Musha
Governance and Compliance Fordson
7 Loan Administration 12-Sep
• Regulatory Authority • Internal Compliance Musongarabwi
Mandate AbdulKareem
8 Treasury Payments/Settlements 7-Sep
Automation Salami
PAPSS - Pan-African Payment and AbdulKareem
• Aspirations for Automation • Pipeline Digital Projects 9 7-Sep
Settlement System Salami

Refer Annexure II B for Detailed Questionnaire

 Existing Product - Process Assessment
What is Working Well
Team Competencies:
Expertise team with solid know-how of overall products
and processes
ICR/ OCR Extraction:
Auto Doc Classification & Extraction in workflow:
Salesforce (Onboarding) and Trade AI (Trade Finance)
Diverse range of products:
Offering range of products and services to multiple
customer segments (Financial Institutions, Governments,
Corporates)
Automated Sanction Screening and
Transaction Monitoring:
• The SWIFT Sanction screening tool checks incoming
and outgoing SWIFT messages in real-time
• SAS is integrated to CDR, which in turn links to
Finacle to support AML transaction monitoring
Refer Annexure I for Detailed Process Flows
What Needs Improvement
Limited Integration
Limited integration resulting in duplication of efforts:
▪ LC Confirmation, Amendments: SWIFT messages do
not flow autoflow to Trade AI
▪ Lack of integration between workflow and core
banking system across products
Manual Touch Points
• Manual download and upload of Inward SWIFT report
from xTrail
• Manual allocation of cases across products
Adoption of Digital Journey
Limited adoption of digital journey across products
Compartmentalization
Minimal segregation of duties (basis skill set, product)
within teams
Product
Prioritization
Framework
 Product Prioritization Framework

Assessment Framework
Compliance
Process design Scalability Cost-Benefit
Considerations
Products
Technology usage/
Level of customer interaction Outsourcing Payback period
Automation

Inter-dependencies on teams/ Skill-set requirements Client confidentiality

systems
L1 Processes
Specific language skills Business continuity/
Inherent risk requirements Disaster recovery
L2 Processes
Discrete activities with
Transaction Monitoring
Geographic advantage available measurable KPIs

Customer Intimation/ Reporting/ Reconciliation

communication

Prioritization Framework Prioritised units

and processes
Value creation for client through automation and technology @ L2 level with
product
Volume and scale to generate growth: Profitability
nuances
Competitive advantage
 Detailed Assessment Framework (1/3)
Assessment
Parameters
Area
High level of interaction both
Level of customer
through voice and electronic
interaction
mode
Large complex inter-
Inter-dependencies on dependencies with high
processes/ systems potential to impede
processing if outsourced
Non-traditional product, high
impact on credit risk,
Process Design Inherent risk
stringent product specific
compliances
Cannot be moved offshore/
Geographic advantage
available nearshore due to time zone
constraints
Manual intimation/
Customer Intimation/ communication messages/
Communication emails sent requiring human
inputs and decisioning
Moderate level of
interaction; less of voice,
more of electronic mode
Few complex inter-
dependencies with least
potential to impede
processing if outsourced
Non-traditional product,
moderate impact on credit
risk, limited product specific
compliances
Can be moved offshore/
nearshore. Major time zone
implication to be addressed
Manual intimation/
communication messages/
emails in a format requiring
human inputs
Low level of interaction;
primarily through electronic
mode
Few simple inter-
dependencies; no impact on
processing if outsourced
Traditional product, low
impact on credit risk, no
specific compliance
requirements
Can be moved offshore/
nearshore with very minor
time zone implications
Manual intimation/
communication messages/
emails in standard template
with minor customizations
Least attractive Most attractive
for outsourcing for outsourcing
No customer interaction
required
No inter-dependency on
other processes/ systems
Traditional product, no
impact on credit risk and no
specific compliance
requirements
Can be moved offshore/
nearshore with no time zone
implications
Manual intimation/
communication messages/
emails sent in standard
template
 Detailed Assessment Framework (2/3) Least attractive Most attractive
for outsourcing for outsourcing

Assessment
Parameters
Area

Opportunity to automate Opportunity to automate

Technology Usage/ No opportunity to automate Very limited opportunity to
process with minor re- process with no re-
Automation process automate process
engineering engineering

Easy to hire large talent pool

Difficult to hire large talent
pool or lack of training
Specialized skill-set required
capabilities or automation of
tasks
Scalability
Difficult to hire large talent
pool or limited training
capabilities or limited
automation
Easy to hire large talent pool
with industry certifications or
or develop training
advanced training capabilities
capabilities or enhance
with basic processes being
usage of automation
automated

Specific language skills

Advanced understanding of Working understanding of Basic understanding of No implications on account
requirements (foreign
foreign language foreign language foreign language of foreign language
language)

Discrete activities with No specific and measurable Specific qualitative KPIs with Specific KPIs with mix of Clearly defined quantitative
measurable KPIs KPIs for monitoring no quantitative KPIs qualitative and quantitative KPIs for monitoring
 Detailed Assessment Framework (3/3) Least attractive Most attractive
for outsourcing for outsourcing

Assessment
Parameters
Area

Outsourcing can be done

Strict regulations that Outsourcing can be done No regulations that prohibit
Outsourcing subject to adherence to
prohibit outsourcing with regulatory approvals outsourcing
guidelines

Specific regulations prohibit Data sharing with third Data sharing with third No specific regulations that
Client confidentiality sharing of client data with parties can be done with parties can be done subject prohibit data sharing with
third parties regulatory approvals to adherence to guidelines third parties

BCP/ DR site functional with BCP/ DR site functional with

Compliance Business continuity/ Disaster Geography specific Seamlessly functional BCP/
restrictions and limited no restrictions and limited
Considerations recovery restrictions on BCP/ DR site DR site
capabilities capabilities

Case Investigations and Case creation to determine Identifying and Validating an System based transaction
Transaction Monitoring
Suspicious Activity Reporting the nature of alert activity alert screening

Reports prepared/ Reports prepared/ Reports prepared/

Standard reports reconciliation performed in reconciliation performed reconciliations performed by
Reporting/ Reconciliation
downloaded from system co-ordination with multiple with few inputs required operations team
teams from other teams independently
Assessment
 ▪ Requires specialised expertise
and experience
▪ Avg. Annual Volume: 502* ▪ Multifaceted and intricate
▪ Avg. Annual Value: $8,532 ▪ Sanction screening is tasks
mn automated ▪ Requires in-depth product
▪ Avg. Annual Volume: 726 ▪ High-level of customer knowledge
▪ Avg. Annual Value: $22,914 interaction ▪ High inherent risk
▪ In-depth domain knowledge
mn
▪ Standardised process ▪ Requires human judgement
▪ Avg. Annual Volume: 8,086 and industry knowledge
▪ Substantial manual data
▪ Basics skill-sets required ▪ High inherent risk
▪ Primarily automated
entry, with low skills Loan Processing
requirement
workflow
▪ Moderate Risk
▪ Streamlined and KYC & Screening
standardized procedure
▪ Low Risk
Trade Finance
Key Considerations
Payments Transaction Volume Inherent Risk

Automation Required Skill-set

Complexity of Transaction Processing

* Includes Onboarding & CDD numbers
 Captive/ Captive/ Outsourcing
Captive/ Outsourcing Current State
Outsourcing Priority Product Description L1 Activity Priority
Feasibility Automation
(Product) (Sub - Product)
Payments
Transaction Pre – Processing
Transaction Processing (AfPAY)
AfPay (Re-route) and Queries Transaction Processing (Queries)
1 Transaction Processing (Treasury and
Finance)

Outward / Fixed Deposit/ Account Transaction Pre – Processing

Management
LC Confirmation/ Guarantee Advising/
SBLCs/ Inward Amendments
Export Bills Under LC/ Advising -
Inward Payment/ Settlement
2 Transaction Pre - Processing
LC/ IRU/ Guarantee – Claim Settlement
LC/ IRU/ Guarantee Issuance
Transaction Processing
Trade Finance
Transaction Pre – Processing
Transaction Processing
Transaction Processing (Phase 1)
Transaction Processing (Phase 2)
(Document Check and Lodgement)
Transaction Processing
Transaction Pre – Processing
Transaction Processing

1 4
Least attractive Most attractive Less automated Completely automated
High Priority Low Priority High Priority Low Priority
for outsourcing for outsourcing process process
Refer Annexure II B for Detailed Assessment
 Captive/ Captive/ Outsourcing
Captive/ Outsourcing Current State
Outsourcing Priority Product Description L1 Activity Priority
Feasibility Automation
(Product) (Sub - Product)
Onboarding
Sanction Screening (AML/CFT) Transaction Processing
Transaction Pre – Processing
3 KYC/ Re-KYC Transaction Processing
Transaction Post - Processing
Loan Process
Transaction Pre – Processing
(Pre-Disbursement)
Transaction Processing
Loan Administration
(Disbursement)

4 Transaction Post - Processing

(Post-Disbursement)
Transaction Pre – Processing
Credit Assessment Transaction Processing
Transaction Post - Processing

1 4
Least attractive Most attractive Less automated Completely automated
High Priority Low Priority High Priority Low Priority
for outsourcing for outsourcing process process
Refer Annexure II B for Detailed Assessment
 Trade Finance Loan Processing
▪ Letter of Credit (LC) ▪ Credit Assessment
▪ Standby Letter of Credit (SBLC) ▪ Loan Administration
▪ Irrevocable Re-imbursement
Undertaking (IRU)
▪ Bank Guarantees (BG)
▪ Export LC Advising

Payments Onboarding
▪ AfPay (Re-Route) ▪ KYC/ Re-KYC
▪ Outward/ Inward ▪ Sanction Screening
▪ Queries
▪ Fixed Deposit
▪ Account Management
 Annual Value & Volume FY’22 Activities
Director
4903 Banking Operations
5000.0 AfPay (Re-route)
61%
4000.0 3183 Outward/Inward Remittance Senior Manager
3000.0 65% 39% Fixed Deposit
Manager
2000.0 35% 1479.3 Account Management: Opening, Amendment/
812.2 Maintenance, Deletion
1000.0 Asst. Manager
0.0 E-Banking System Management: Password
Inward Outward Reset, etc Associate

Query Resolution
Value (USD 10 Million) Volume (#) Team Support

Key Metrics Desired Skill Set Customer Base (%)

FTR: 90%
KPI: Process particular phase of the transaction 5
within the defined SLA (24 hours) Experience: 5+ years for Professionals
TAT: Average TAT across all products and Qualifications/ Certifications: Master's Degree
processes is 1 day
Language: English, French, Arabic
45 55
System Details:
• Workflow: Built In-House
• Core Banking System: Finacle
• Disaster Recovery System (DR): Cloud
based, easily accessible with minimal
downtime. DR Site in place FI Corporates Governments
 L1 & L2 Activities
AfPay (Re-route) and Queries
Transaction Pre-Processing Transaction Processing
AfPay

Transaction External Team Internal Team Review of Processing Transaction Internal External SWIFT
Allocation Co-ordination Co-ordination SWIFT of Re-route Verification Transaction Transaction Authorization
Closure Processing

Queries Treasury and Finance

Processing Transaction Internal Team

of Queries Closure Coordination and Closure

Outward / Fixed Deposit/ Account Management

Transaction Pre-Processing Transaction Processing

Application Treasury Data Entry Transaction Sanction

Review Approval Authorization Screening
 L2 Assessment - AfPay (Re-route) and Queries (1/2) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Inward SWIFT Messages auto flow from SWIFT to workflow and ► Process flow is largely
Transaction tasks are auto created. Segregating transactions into three standardised and automated,
Allocation categories: Treasury, Finance and Banking Operations from 940 requiring basic skill set. With
report (Inward swift messages) adequate training and
External Team Sharing the transactions related to treasury and finance with documented procedures, it can be
Transaction easily considered for outsourcing
Pre - Coordination respective teams over email for their review and comment
Processing
or setting up a captive
Internal Team Manually assigning transactions related to Banking Operations
Coordination among team members in workflow ► OCR/ICR integrations in workflow
can assist in auto segregation of
Reviewing SWIFT messages to understand nature of transaction transactions, reducing manual
Review of SWIFT a) Re-route (AfPay) effort
b) Queries
► System access to team members
Processing of Re- All AfPay transactions are auto-processed in Finacle basis the with specific skills related to
SWIFT message. Sanction screening tools are integrated into Not Applicable
Route
Finacle, and each transaction processed is auto screened
Finance and Treasury to reduce
turnaround time and avoid back
Transaction Verifying the auto processed transaction in Finacle with the SWIFT and forth between teams
Verification message
Transaction ► Afpay transactions are already STP
Processing
(AfPAY)
Internal Updating transactions with comment “STP” in workflow, for and verification in Finacle can be
Transactions customers within the Bank and sending it to verifier queue for outsourced as it involves fewer
Closure approval technical complexities
External Updating transactions for non-Bank customers with comment
Transactions “applied STP, authorize SWIFT” in workflow and sending it to
Processing verifier queue

Outsource/
In-House
Captive
 L2 Assessment - AfPay (Re-route) and Queries (2/2) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Transaction For External Transaction, SWIFT message is auto generated in ► Dedicated customer service team
SWIFT
Processing Authorization Finacle. Approving and releasing the SWIFT from Finacle and with specialised skill sets and basic
(AfPAY) closing the transaction in workflow knowledge of all products and
services offered by the Bank to
For queries, sending email/SWIFT to the relevant team, customer,
Processing of specifically handle queries
FI as required to obtain clarification and marking transaction as
Queries
Transaction ‘On hold’ in workflow ► Approvals and authorizations are
Processing in-housed since they involve
(Queries) Basis the response received from respective counterparty
Internal Team decisioning
Coordination (Internal/External), performing required action, updating relevant
comments and closing the transaction in workflow

Transaction Basis response received from the respective team, performing

Processing Transaction required action, updating relevant comments and closing the
(Treasury and closure transaction in workflow
Finance)

Outsource/
In-House
Captive
 L2 Assessment - Outward / Fixed Deposit/ Account Management Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Receiving application and supporting documents for Outward/ ► Application review requires
Application Review Fixed Deposit/ Account Management from customer/ front office specific skill set and technical
Transaction
via email/hardcopy/SWIFT. Reviewing these documents know-how of the product to
Pre -
Processing review the nature of transaction
For Outward Transactions > USD 1 million or Cross currency and information in documents
Treasury approval
transactions, sending email to treasury team for approval
► Approval from treasury team and
Performing call back to confirm transaction details. Entering data entry are standardised
corresponding transaction details in Finacle against the specified process, requiring minimal skills.
event and necessary actions are taken. Reference number is auto With adequate training and
Data Entry generated documented procedures, its more
Creating a new transaction in workflow and updating required favourable for outsourcing or a
details along with Finacle reference number captive set-up
Transaction
Processing Transaction Transaction moves to verifier queue for approval in workflow.
Authorization Verifier approves the transaction in workflow and Finacle

Sanction screening tools are integrated in Finacle. Each transaction

processed is auto screened. On successful auto-screening, the
Sanction Screening transaction is completed. Not Applicable
In event of any HITs, the transaction moves to compliance queue.

Outsource/
In-House
Captive
 Trade Finance Loan Processing
▪ Letter of Credit (LC) ▪ Credit Assessment
▪ Standby Letter of Credit (SBLC) ▪ Loan Administration
▪ Irrevocable Re-imbursement
Undertaking (IRU)
▪ Bank Guarantees (BG)
▪ Export LC Advising

Payments Onboarding
▪ AfPay (Re-Route) ▪ KYC/ Re-KYC
▪ Outward/ Inward ▪ Sanction Screening
▪ Queries
▪ Fixed Deposit
▪ Account Management
 691.9
Annual Value & Volume FY’22 Director
700.0 Banking Operations
(81%) 595
600.0
(82%)
500.0 Senior Manager
400.0
300.0 Manager - 1 Manager - 2
(10%)
(5%)
200.0 (6%) (4%) (7%) (5%)
82.1 45 48
100.0 38.5 40.8 38 Asst. Manager - 1 Asst. Manager - 2
0.0
LC SBLC IRU BG Associate - 1 Associate - 2

Value (USD 10 Million) Volume (#) Team Support - 1 Team Support - 2

Key Metrics Desired Skill Set Customer Base (%)

FTR: 20% Experience: 5+ years for Professionals
5
KPI: Process particular phase of the transaction Qualifications/ Certifications:
15
within the defined SLA (24 hours) • Master's Degree
• Certificate for Documentary Credit
TAT: Average TAT across all products/process
Specialists (CDCS)
is 1 day
• Certificate in Trade Finance Compliance
System Details: (CTFC)
80
• Workflow: Trade AI • Any other Trade Finance related
• Core Banking System: Finacle certifications/ qualifications
• Other Systems Used: xTrail (SWIFT Language: English, French, Arabic
repository) FI Corporates Governments
 L1 & L2 Activities (1/2)
LC Confirmation/ Guarantee Advising/ SBLCs/ Inward Amendments

Transaction Pre-Processing Transaction Processing

Transaction Verification of Discrepancy Limit Compliance Approval/ Data Entry Limit Blocking Charges SWIFT
Allocation SWIFT message Resolution Check Sanction screening Collection Authorization

LC/ IRU/ Guarantee Issuance

Transaction Pre-Processing Transaction Processing

Document Data Discrepancy Limit Compliance Approval/ Data Entry Limit Blocking Charges SWIFT
Scanning Verification Resolution Check Sanction screening Collection Authorization

Claim Settlement
Transaction Pre-Processing
(Document Check/ Lodgement)

Document Data Compliance Approval/ Discrepancy Transaction Document SWIFT SWIFT

Scanning Entry Sanction Screening Resolution Authorization Lodgement Preparation Authorization
 L1 & L2 Activities (2/2)
Claim Settlement
Transaction Processing

Identifying Check Funding Devolvement Data Transaction SWIFT Payment

Payment Due Status Account Creation Entry Authorization Authorization Processing

Export Bills Under LC/ Advising - Inward Payment/ Settlement

Transaction Pre-Processing Transaction Processing

Document Data Entry Compliance Discrepancy Transaction Document Inward Data Entry Transaction Customer
Scanning Approval/ Sanction Resolution Authorization Lodgement Payment Authorization Credit
Screening & Dispatch Processing
 L2 Assessment - LC Confirmation/ Guarantee Advising/ SBLCs/ Inward Least attractive Most attractive
for outsourcing for outsourcing
Amendments
L1 Activity L2 Processes L2 Process Description Assessment Rationale

Manually downloading incoming swift messages report in excel ► Discrepancy resolution requires
Transaction and PDF from xTrail and uploading it on Trade AI. Assigning high-level of customer interaction
Allocation transactions to team members. Creating new transaction under and know-how product specific
respective event and uploading PDFs on Trade AI risks and nuances
Verification of Reviewing swift message to verify T&Cs as per the instrument and ► Authorizations are traditionally
SWIFT message the data populated in workflow
handled in-house since they
Transaction
Pre- Discrepancy Coordinating with customer/FI to obtain missing information or involve risk decisioning
Processing Resolution resolve any discrepancies ► While the process flow is
Checking limit and funds availability in customer’s account
standardised, the risk and
Limit Check intricacies at the product level may
depending on the nature of the product
vary. With sufficient training and
Compliance Transaction moves to compliance queue. Screening party, well-documented procedures, it is
Approval/ Sanction counterparty, countries, commodity etc for potential sanction hits. possible to outsource these or
Screening Reviewing hits identified. Additional due diligence on true matches establish a captive operation
Recording transaction details in Finacle and Trade AI, updating ► Charge collection needs basic skills
Data Entry Trade AI with transaction ID from Finacle. Swift messages are but carries financial risks. Hence,
auto-generated in Finacle
outsource with considerations. It
Limit Blocking Blocking of credit lines in Finacle can also be automated
Transaction
Processing ► Integration among Swift, Trade AI
Charges Collection Debiting customer's account for charges as per SWIFT or SI
and Finacle will enable seamless
transaction flow with minimal
SWIFT Verifying, authorizing and releasing SWIFT from Finacle (Senior
Authorization Manager & above) manual intervention and
duplication of efforts
Outsource/
In-House
Captive
 L2 Assessment - LC/ IRU/ Guarantee Issuance Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Document Scanning and uploading transaction documents (customer request ► Process flow is largely
Scanning and underlying) in Trade AI received from customer/ CLRE team standardised and automated,
via email/ hardcopy requiring basic skill set. With
Reviewing data consistency within documents and data captured
adequate training and
Data Verification documented procedures, it can be
in Trade AI as per the documents
easily considered for outsourcing
Transaction
Discrepancy Coordinating with the customer to obtain missing information and or setting up a captive
Pre- resolve any discrepancies or any other issues in processing the
Resolution ► Authorizations are traditionally
Processing transaction
handled in-house since they
Checking limit and funds availability in customer’s account involve risk decisioning
Limits Check
depending on the nature of the product
► Charge collection requires basic
Compliance Transaction moves to compliance queue. Screening party, skills but carries financial risks.
Approval/ Sanction counterparty, countries, commodity etc for potential sanction hits. Hence, to be outsourced with
Screening Reviewing hits identified. Additional due diligence on true matches considerations. The same can
Recording transaction details in Finacle and Trade AI, updating even be automated
Data Entry Trade AI with transaction ID from Finacle. Swift messages are
auto-generated in Finacle ► Activities like Limit Check and
Limit Blocking are standardised,
Transaction Limit Blocking Blocking of credit lines in Finacle requiring basic skills. They can also
Processing be automated
Charges collection Debiting customer's account for charges as per SWIFT or SI

SWIFT Verifying, authorizing and releasing SWIFT (Issuance) from Finacle

Authorization (Senior Manager & above)

Outsource/
In-House
Captive
 L2 Assessment - LC/ IRU/ Guarantee – Claim Settlement (1/2) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Document Scanning and uploading transaction documents (customer request ► Document checking requires
Scanning and underlying) in Trade AI received from customer/ CLRE team understanding of product specific
via email/hardcopy nuances and specialised skill sets
Creating a new transaction in Trade AI under event ‘Document ► In event of discrepancy, customer
Data Entry Examination’ and uploading all documents received. Data is auto co-ordination and understanding
populated. Verifying accuracy of details captured as per of technical complexities related
documents
to the products will be required
Track moves to Compliance team for screening of party,
Compliance ► Individuals with specialised skill
Approval/ Sanction counterparty, countries, vessels, commodity for potential sanction
Transaction hits. Reviewing hits identified. Additional due diligence on true sets and a clear understanding of
Screening the product's nature can allow for
Pre- matches
Processing the same to be outsourced or set
Discrepancy Coordinating with the customer to obtain missing information, up within a captive environment
(Document Resolution resolve discrepancies or any other issues
Check and
Lodgement)
► Integration between Workflow
Transaction In case of compliant documents, transaction moves to verifier and Core Banking system can
Authorization queue in Trade AI for approval reduce the duplication of effort
Document Post approval, recording transaction details in Finacle and lodging
Lodgment the documents

In case of discrepant document, preparing SWIFT message on

SWIFT Preparation
Finacle for “Advice of refusal” to be sent to presenting bank

SWIFT Verifier to review, approve and release the SWIFT message

Authorization

Outsource/
In-House
Captive
 L2 Assessment - LC/ IRU/ Guarantee – Claim Settlement (2/2) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Identifying Due Filtering the transaction due for payment daily from the report ► Identification of transactions due
Payments generated by core banking system for payment and checking funding
status of the customer is a
Checking Funding Verifying customer's account to ascertain the availability of cash systematic process and requires
Status margin by Loan Admin (LOAD) Team minimal skillset

Devolvement Liaising with LOAD to create a loan account for the customer, in
► Communication to Loan admin
Account Creation case of insufficient balance team for devolvement account
creation can be streamlined with
Transaction Updating transactions details like account to be debited, integration on workflow
Processing Data Entry corresponding bank details, charges to be levied etc, in Finacle and ► Authorizations and approvals are
Finacle reference number along with cover letter in Trade AI
traditionally handled in-house
since they involve risk decisioning
Transaction flows in verifier queue in Trade AI and verifier
Transaction authorizes transaction in Finacle
Authorization
On approval, payment is processed

SWIFT Swift messages are auto created in Finacle once data is entered.
Authorization Verifying, authorizing and releasing SWIFT from Finacle (Senior
Manager & above)

Outsource/
In-House
Captive
 L2 Assessment - Export Bills Under LC/ Advising - Inward Payment/ Least attractive Most attractive
for outsourcing for outsourcing
Settlement (1/2)
L1 Activity L2 Processes L2 Process Description Assessment Rationale

Document Scanning and uploading transaction documents (customer request ► Phase 1 requires high-level of
Scanning and underlying) in Trade AI received from customer/front office customer interaction and know-
team via email/hardcopy how product specific risks and
nuances
Creating a new transaction in Trade AI and uploading all
Data Entry documents received. Data is auto populated. Verifying accuracy of ► Integration of workflow and core
details captured as per documents banking system can further reduce
duplication of efforts and
Compliance Track moves to Compliance team for screening of party, streamlining the process
Approval/ Sanction counterparty, countries, vessels, commodity for potential sanction
Transaction hits. Reviewing hits identified. Additional due diligence on true ► Dependency on LOAD team can be
Processing Screening
matches streamlined with integrated
(Phase 1)
workflow
Discrepancy Co-ordinating with customer to perform transaction specific
Resolution diligence and resolve document discrepancies, in case any ► Dealing with original physical
documents poses security risks.
Transaction Compliant transaction moves to verifier queue for approval.
Measures should be taken to
Authorization Verifier reviews the same and approves it in Finacle mitigate these risks and then
considered for outsourcing or
Document Post approval, recording transaction details in Finacle, lodging incorporating them into a captive
Lodgement and documents and dispatching the same to issuing Bank (hardcopies operation
Dispatch are couriered)

Transaction Receiving notification/SWIFT from Issuing bank when payment is

Inward Payment
Processing Processing processed. Obtaining details and confirmation of the account to be
(Phase 2) credited from LOAD team

Outsource/
In-House
Captive
 L2 Assessment - Export Bills Under LC/ Advising - Inward Payment/ Least attractive Most attractive
for outsourcing for outsourcing
Settlement (2/2)
L1 Activity L2 Processes L2 Process Description Assessment Rationale

Entering transaction details in the Trade AI and Finacle. Reference ► Phase 2 is standardised process
Data Entry ID generated in Finacle. Updating this ID in Trade AI against the requiring basic skill set. With
corresponding Transaction adequate training and
Transaction documented procedures, it can be
Processing Transaction Transaction flows in verifier queue in Trade AI and verifier easily considered for outsourcing
(Phase 2) Authorization authorizes transaction in Finacle or setting up a captive

On approval, posting of auto entries in Finacle and crediting

► Credit to Customer is already
Credit to Customer Not Applicable automated process
customer account net of charges

Outsource/
In-House
Captive
 Trade Finance Loan Processing
▪ Letter of Credit (LC) ▪ Credit Assessment
▪ Standby Letter of Credit (SBLC) ▪ Loan Administration
▪ Irrevocable Re-imbursement
Undertaking (IRU)
▪ Bank Guarantees (BG)
▪ Export LC Advising

Payments Onboarding
▪ AfPay (Re-Route) ▪ KYC/ Re-KYC
▪ Outward/ Inward ▪ Sanction Screening
▪ Queries
▪ Fixed Deposit
▪ Account Management
 Transaction Volume FY’22 Activities
24000 Onboarding: Director
▪ KYC/ Re-KYC Compliance
20000 ▪ CRR (Customer Risk Ranking)
▪ CDD (Customer Due Diligence) Manager – Monitoring
15000 Manager – COMP
& Sanction
Transaction Monitoring/ Sanction Screening
10000
Reg. Reporting:
5000 1860 1030 ▪ COMP mandated to report monthly to MCC Associate – 1 Associate – 2 Associate – 3
455 47
0 Ongoing Activities:
SWIFT Payment Onboarding CDD Trade AI ▪ Refining onboarding practices: Salesforce
enhancements, simplify CDD Group Support – 2 Group Support – 2
Volume (#)
▪ Launching revamped online customer portal

Key Metrics Desired Skill Set Customer Base (%)

TAT (increases if referred to MCC):
Experience: 5
For clearance of credit clients:
▪ 7 days upon submission of all relevant docs Senior Manager 18 - 20 years
▪ 21 days where an EDD is required Manager 10+ years
For non-borrowing and secondary credit clients:
Asst. Manager 5 - 10 years 48
▪ 5 days upon submission of all relevant docs
Team Support <5 years 47
Sanction Screening Systems: SWIFT
Transaction Monitoring Systems: SAS
Workflow: Salesforce (SF) Qualifications/ Certifications: Master’s Degree
Core Banking System: Finacle
DR (Disaster Recovery) System: Manual processing Language: English, French, Arabic
is done as a DR provision in the absence of SF Corporates FI Governments
 L1 & L2 Activities
Onboarding (KYC/ Re-KYC)

Transaction Pre - Processing Transaction Processing

Client Data Document Discrepancy Screening Status CDD Customer Data Update
Assessment Entry Review Resolution Update Report Identification
File

Transaction Post - Processing

KYC/CDD Re-KYC
Status Update

Sanction Screening (AML/ CFT)

Transaction Processing Transaction Post - Processing

Transaction Transaction Hit Management

Monitoring/ AML Cases Reporting
 L2 Assessment – Onboarding (1/2) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Client fills up AML/KYC form (separate form for FIs and Corporates), ► Understanding the customer
Client Assessment through which CLRE team receives detailed information about the requires significant human
Transaction
Pre – client, its background, business, operating regions, exposure etc judgment, making the potential
Processing Capturing client data in Salesforce in ‘Details’ tab and uploading all for outsourcing and captive setup
(CLRE) Data Entry minimal
required KYC documents in ‘KYC Documents’ tab.
Track moves to Compliance team
► Standard documented procedures
Reviewing client documents uploaded in Salesforce vis-à-vis the coupled with usage of technology
Document Review
data auto populated in KYC/CDD tab create strong use case for
outsourcing or captive set-up of
In event when there is any data missing/discrepancies, it is auto document review
captured by the system in field ‘Missing Account’s Documents’.
Discrepancy Highlighting these to CLRE team via Chat/Email tab in Salesforce ► Traditionally, banks outsource
Resolution and marking the transaction as “In Progress’. document review and account set-
CLRE team further co-ordinates with client to obtain missing up
information and clarifications
Transaction ► Deployment of ICR/OCR tool for
Processing World-check is integrated in Salesforce. All names, company/ FI, client assessment provides an
Screening board members, shareholders, other related parties are auto- opportunity to further automate
screened. For certain exception cases, manual screening is done on
World-Check and consecutive fields are updated in Salesforce the process

Updating the KYC/ CDD status basis the screening results.

(Confirmed, Blacklisted, Declined, Expired, In Progress, Not Conducted,
Status Update Watchlist).
For certain products, marking the case ‘In Progress’ and sending it
further to MCC for approval

Outsource/
In-House
Captive
 L2 Assessment – Onboarding (2/2) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

For cases to be sent to MCC, preparing CDD (Customer Due ► Preparation and presentation of
CDD Report Diligence) report and presenting it to the Committee via Convene. CDD report requires detailed
Basis their feedback, updating KYC/CDD status on Salesforce understanding of customer
background, risks involved and
COMP updates status on Salesforce, data is pushed to Finacle and mitigation strategies
Customer CIF id is auto generated by the system.
Onboarding is completed and automated welcome letter is sent to Not Applicable ► Data updation in CDR & SAS is
Transaction Identification File
Processing customer. CLRE team also gets updated via ‘Chat and email’ tab on automated and integrated
Salesforce
► Transaction post-processing
System auto – pushes client’s details to CDR (Customer Data demands specialized skills and
Repository) from Finacle. industry and financial knowledge,
Data Update Data collected from other source systems (Finacle, SAP, Quantum) Not Applicable
making it a suitable candidate for
also flow to these systems to detect data inconsistencies and
reduce data duplication outsourcing or captive setup with
experienced professionals
KYC/CDD Status Updating KYC/CDD status, in cases when company status changes
Update in future, basis further review or during Re-KYC

A system generated email is shared with respective team members

from CLRE team for clients due for Re-KYC.
Transaction
Post - Updating KYC/CDD status for cases due for Re-KYC as “To-Be Re-
Processing certified”.
Re-KYC
Basis the information received from the client (Re-Certification
form), conducting the assessment process.
Re-KYC tenure is defined basis Risk Rating assigned to the
customer during On-Boarding Process

Outsource/
In-House
Captive
 L2 Assessment – Sanction Screening (AML/ CFT) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Finacle is linked to SWIFT and SWIFT screening tool is integrated ► Transaction screening and
with SWIFT portal. All transactions processed via Finacle are auto monitoring, done through SWIFT
screened via SWIFT screening tool. screening tool and SAS is
Further, Finacle is integrated to CDR. All data from Finacle is auto Not Applicable automated
Transaction
pushed to CDR which is further pushed to SAS (Risk Ranking &
Monitoring / AML ► Hit case scenarios require manual
Transaction Monitoring).
Transaction assessment and expert judgment,
Processing There are custom scenarios (15 in total) in SAS classified among thus making it a task suitable for
various risk typologies to detect suspicious transactions that may
outsourcing or forming a captive
lead to money laundering or any other financial crime
with individuals possessing the
A list is generated from SAS and SWIFT Screening toll to identify if necessary skills, experience and
Transaction Hit there are any ‘HIT Cases”. These cases are assigned to designated knowledge
Cases office, the same in investigated to identify if it's True Match or
False Positive
► Base data required for preparing
report is auto generated from the
Submitting report monthly to Management Compliance system, and hence report
Committee (MCC) consisting of all transaction, names along with preparation requires basic skill-set
Transaction rejected cases and their reasons. Base data for this report is
Management
Post generated from SAS and SWIFT.
Reporting
Processing
This report also highlights the challenges faced during on-boarding
process, if any

Outsource/
In-House
Captive
 Trade Finance Loan Processing
▪ Letter of Credit (LC) ▪ Credit Assessment
▪ Standby Letter of Credit (SBLC) ▪ Loan Administration
▪ Irrevocable Re-imbursement
Undertaking (IRU)
▪ Bank Guarantees (BG)
▪ Export LC Advising

Payments Onboarding
▪ AfPay (Re-Route) ▪ KYC/ Re-KYC
▪ Outward/ Inward ▪ Sanction Screening
▪ Queries
▪ Fixed Deposit
▪ Account Management
 Average Annual Value & Volume (2 years) KPIs Director
150 Credit Assessment
Value (USD 100 Million) Volume (#) ▪ CRAS Quality and Operating Efficiency
112.65 o Total transactions Approval Rate Senior Manager - 1 Senior Manager - 2
66% 94 o New Programs/ Products Approval Rate
100
71% ▪ Satisfaction Score (SC) Manager - 1 Manager - 2 Manager - 3 Manager - 4
o Customer SC
o Internal stakeholder’s SC Manager - 5 Manager - 6 Manager - 7
50 14%
8% 9% ▪ Initiatives Implementation and better
24.70 11% 8%
15 13.99 11 16.13 6% 2% 4% Enterprise-wide risk management: Asst. Manager Associate
8 5
3.25 o % of initiatives initiated on time
0
o % of current year disbursed transactions
Trade Finance Intra African Project Finance Guarantees & Export Office Manager
Trade Initiative Specialised Fin Development
# Each Branch has a Credit Officer

Key Metrics Desired Skill Set Customer Base (%)

Experience: 8+ years for Managers and above 4
FTR: 95% (All data shared with the team post
Qualifications/ Certifications:
review by PAC)
• Master's Degree
• Credit Risk Certifications
TAT: Category # of days 48
Language: English, French, Arabic (depends on the
• TRFI 14 region) 48
• IATI 12
System Details:
• PRFI 21 Workflow: Salesforce
• GSFI 10 Risk Ranking: Model Hosting Platform
• EXDE 23 Core Banking System: Finacle FI Corporates Governments
 Annual Value & Volume FY’23* KPIs
1500 1426.29 Director
83%
Value (USD 10 Million) Volume (#) ▪ Operating Efficiency KPIs: Banking Operations
o Completion of pre-disbursement due
diligence and disbursement within 3 Francon North
Anglo South East
1000 Portfolio
business days of respective tasks Portfolio
(Francophone
Anglophone West
761 (East & Southern Africa
o Reporting quality and timeliness West, Northern &
84% Africa)
▪ Risk Management KPIs: Central)
500
11%
o Post disbursement and limit set up review Senior Manager Senior Manager Senior Manager
190.79
4%
6% (within 1 business day of disbursal) 1 2 3
4% 3% 2% 1% 3%
40 64.56 27 32.56 52 12.84 25
o Deferred CPs, audit issues resolved on time Manager/Asst. Manager/Asst. Manager/Asst.
0 o Proportion of overdue / remedial actions on Manager - 1 Manager - 2 Manager - 3
Trade Finance Intra African Project Finance Guarantees & Export the BAOP RCSA, KRI, Incident Risk Register, Team Team Team
Trade Initiative Specialised Fin Development
Control Testing etc. Support - 1 Support - 2 Support - 3

Key Metrics Desired Skill Set Customer Base (%)

Experience: 16.3
FTR: 80% Senior Manager 10+ years
TAT: a) Facility Certification: 5 business days Manager 8+ years
b) Disbursement: 3 business days Asst. Manager 5+ years 48.3
Workflow: Laserfiche Forms Team Support 2+ years

Core Banking System: Finacle 35.3

Qualifications/ Certifications: Master's Degree
Language: English, Arabic, French

FI Corporates Governments

*Data for Oct, Nov & Dec 2023 has been extrapolated basis information provided for Jan through Sep’23
 L1 & L2 Activities (1/2)
Credit Assessment
Transaction Pre-Processing Transaction Processing

Client PAC Green Light Submission to Loan Application Compliance Risk Rating Risk Facility Risk Rating
Engagement Review Route CRAS Review Check Report Mitigation Module

Transaction Processing

Information Third Party Preparation of Request Facility Facility Communication Communication to

Collection View Credit Memo Approval Sanction Decline to Legal Team Origination Team

Transaction Post - Processing Risk Rating Model Categories:

• Sovereign
• Financial Institutions
• Corporate
• Project Financing
Annual Credit CP Review
• Structured Trade Financing
Review
L1 & L2 Activities (2/2)
Loan Administration
Transaction Pre-Processing Transaction Processing
(Pre- Disbursement) (Disbursement)

Document Transaction Data Entry Due Diligence Transaction Facility Utilisation Data Entry
Sharing Allocation Authorization Certification Request

Transaction Processing Transaction Post-Processing

(Disbursement) (Post- Disbursement)

Transaction Disbursement Customer Periodic Customer <=30 DPD 31 to 90 DPD >90 DPD
Authorization Intimation Review Follow-ups Account Account Account
 L2 Assessment – Credit Assessment (1/3) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Engaging with the client, understanding their requirements, ► Transaction pre- processing is
Client Engagement
business model and facility end use objectives performed by front office and
requires high level of customer
Preparing term sheet and proposing a structure to PAC (Pre-
Transaction PAC Review
interaction, human judgement
Assessment Committee). PAC performs high level checks to ensure
Pre – and thereby potential for
the recommendation is in line with Bank’s mandate and policy
Processing externalisation is very limited
(Origination
For some exception cases, only a Memo is prepared and sent for
Team) Green Light Route ► Credit Assessment involves
review and approval to the Head of Client Relations Team
inherent risk on account of
Submission to On approval from respective authorities, creating a transaction in underwriting decisions
CRAS Salesforce and submitting it to Director of CRAS team
► It requires specialised skill set and
Director (CRAS) assigns the case to respective Credit Officer experience to evaluate the nature
Loan Application depending on the nature of facility. Reviewing the completeness of of business and end use objective,
Review documents received and coordinating with origination team to
especially for the Bank as it aims
obtain any missing details/documents
to promote Trade in African region
Obtaining clearance from Compliance Team for KYC status and
Compliance Check
Transaction Risk Management Team for ESG compliance
Processing
(Detailed Credit There are 5 Risk Rating Modules on the platform. Depending on
Assessment) the nature of facility proposed and segment, entering data on the
Risk Rating Report
platform and preparing a Risk Rating Report for borrower as well
product

In event when Risk Rating is not within Bank’s Risk Appetite,

Risk Mitigation evaluating further to identify Risk Mitigants, if any. These forms
part of final Credit Memo

Outsource/
In-House
Captive
 L2 Assessment – Credit Assessment (2/3) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

This module is integrated with Salesforce and Finacle. Fetching ► Adoption of technology platforms
Facility Risk Rating
Module data from both sources and preparing report to evaluate with standardised modules for risk
probability of Default and loss % rating and financial statement
analysis assists in first level of
Obtaining information on borrower, nature of business, operating analysis
Information country and other details from both Internal and External
Collection resources. Bank has subscription to multiple regional platforms as ► Facility decisioning (sanction/
well decline) is traditionally in-house,
as this involves financial risk
In special cases, especially during Project Financing, appointing
Third Party View independent consultants to review the technical aspects of project Not Applicable
and preparing financial projects
Transaction
Processing
(Detailed Credit Bank has standard format for Credit Memo, depending on the
Assessment) Preparation of nature of product. Basis all the information gathered, preparing
Credit Memo Credit Assessment Memorandum (Credit Memo) and assigning
ratings basis assessment

Uploading applications with favorable rating on Salesforce and

Request Approval sending it to Senior Manager and then Director for review and
approval

Presenting Credit Memo to CRECO (Credit Review Committee) for

approval
Facility Sanction
Facilities which are beyond CRECO Delegated Authority (above
certain value) are presented to Executive Committee for approval

Outsource/
In-House
Captive
 L2 Assessment – Credit Assessment (3/3) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Preparing a Memo with recommendation to decline along with ► There is potential to automate
Facility Decline explanation for applications not approved (at any stage) and internal communication to Legal
sharing with Origination Team Team and Origination Team on
completion of assessment
Communication to Sharing approved Credit Memo with Legal Team (LEGA) with all
Transaction supporting documents, where it is recorded and then sent to LOAD ► Release of approval letter (Facility
Processing Legal Team
team for further processing Sanction), being standardised
(Detailed Credit
Assessment) provides automation opportunity
Final decisioning on all applications/ proposals is communicated to
origination team (client relations), who further communicate with ► Transaction post processing
Communication to the client
Origination Team requires specific skill set,
Approval letter to client is released by the team when the facility is understanding of industry and
approved financials. Individuals with
specialised skill sets and a clear
Annual Credit Team reviews all supporting documents/ financials to perform
Review
understanding of the product's
annual review for all facilities issued
nature can allow for the same to
In event when required, team supports the origination team to be outsourced or set up within a
Transaction
Post provide clarity on CPs that form part of the Credit Memo captive environment
Processing CP (Conditions Further, if there are any variations in documents presented vis-à-
Precedent) Review vis CPs, team evaluates the nature of variations, rationale and its
risk implications. A report is prepared for the same and shared
with approving authority

Outsource/
In-House
Captive
 L2 Assessment – Loan Administration (1/2) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

LEGA team shares approved credit memo, credit facility ► Pre-Disbursement due diligence
Document Sharing agreement, Salesforce link for that particular transaction with Not Applicable and Facility certification process
LOAD via e-mail requires basic product knowledge
Transaction Senior Manager manually allocates transactions within the team
and skill set. With adequate
Allocation (Manager/ Asst. manager/ support staff) training and detailed documented
procedures, same can be
Performing pre-disbursement due diligence, ensuring consistency outsourced or establish a captive
Transaction Due Diligence across credit memo, agreement, Salesforce. Ensuring operation
Pre- completeness of documents. Reviewing KYC compliance, CPs etc
Processing ► Integration among Salesforce,
(Pre- Creating a new transaction in Laserfiche Forms under Facility Laserfiche forms and Finacle will
Disbursement) Certification section and updating all required details. enable seamless transaction flow
Data Entry
Manually entering data and setting up Limit in Finacle for the with minimal manual intervention
approved amount and duplication of efforts
Transaction Transaction moves to verifier queue as per approval matrix and ► Incorporating ICR/OCR into
Authorization facility is ready for disbursement workflow can significantly
decrease the amount of manual
Facility Issuing of Facility Certificate to the client. Receiving signed
Certification document from client and performing due diligence on signatures
data entry required

Utilization Request Receiving utilization request from customer/ facility agent over
Not Applicable
email or via SWIFT (FI) as per their requirement
Transaction
Processing Creating a new transaction in Laserfiche Forms under Facility
(Disbursement) Transaction section and in Finacle. Updating all required details.
Data Entry
Additionally, attaching necessary documents in workflow
(Disbursement checklist and documents required are inbuilt in workflow)
Outsource/
In-House
Captive
 L2 Assessment – Loan Administration (2/2) Least attractive Most attractive
for outsourcing for outsourcing

L1 Activity L2 Processes L2 Process Description Assessment Rationale

Transaction Transaction moves to verifier queue as per approval matrix. ► Transaction authorizations,
Authorization Reviewing transaction and authorizing it in workflow and Finacle. particularly for substantial
Case is sent to D-BAOP if the limit > $50mn, for approval amounts, are typically handled
Transaction Internal Account – LOAD team disburses the funds to the account internally due to the need for risk
Processing
Disbursement assessment and decision making
(Disbursement) External Account - The transaction is passed on to PASE (Payment
Services Unit) for disbursement (Outward Payment) ► Notifying customers on loan
Customer
disbursement and follow-ups for
Sending intimation to customer via email, once funds are
Intimation disbursed
payment reminders, usually
standardized communication
Ensuring fees collected, interest rate booked, conditions formats are used. These tasks can
subsequent, etc are lodged accurately in Finacle. Reviewing and be efficiently outsourced.
Periodic Review maintenance of DSRA account. Periodically tracking submission
and reviewing financial statements and client portfolios. If case of
Alternatively, an effective
any discrepancy, then liaising with client relation team to reach approach would be to implement
out to customer for correction/ clarification automated system triggers
Transaction ► Periodic review post loan
Customer Follow Maintaining repayment structure and manually sending follow-up
Post
Processing Ups/ Reminders and reminders to customers for repayment via email for upcoming disbursement requires specific
payment (principal/interest/any charges) due skills and knowledge, same can be
(Post -
Disbursement) Marking the case “delayed”, in a case of non-payment of dues and managed through people with
<=30 DPD Account
reaching out to the client in co-ordination with customer relations specialized skill-sets

31 to 89 Account Marking the case “Default”, in a case of non-payment of dues and Not in Scope
case is now handled by CQA (Credit Quality Assurance)

>=90 DPD Account Classifying the account as “Past Due Obligation” and the facility Not in Scope
now falls under the guidance of Loan Remediation team
Outsource/
In-House
Captive
Thank You
Annexures
Annexure I
➢ Process Flows
 Terminal Process
LC Confirmation/ Guarantee Advising/ SBLCs/ Amendments System Exception
P
I
Pain-points
Insights / Information
Indirect flow
Team Decision Box
System Integration

SM manually assigns the

Swift transactions among the Lack of integration between SWIFT & Trade AI, hence
team members P messages do not auto flow. Integration of Swift with I New Transaction for each inward swift to be
Trade AI can eliminate xTrail auto created along with reference ID

Download Inward Swift Download all swift New transaction is

Start xTrail report (customised report messages individually in Trade AI created under respective
for Trade services) PDF format (support staff) event by support staff

Amendments request may or may not go to compliance, depending on the nature of change
Verify/ edit/ Maker filters the
Send Swift NO Approval YES Data Upload Swift PDF and
Track moves to update data transaction assigned
message to FI received Confirm verified auto populate data
COMP queue populated vis-a-vis basis client name/
for clarification ? ? (OCR) by support staff
swift event
NO I Check to verify if T&Cs are
workable or not
YES Send swift to FI
for clarification

Email is sent to LOAD team

and CRM confirming pricing Finacle reference number Transaction Verifier assigns
and limit of transaction is updated against the moves to verifier transaction to SM
relevant transaction queue to release Swift

Finacle
Finacle
Trade AI and Finacle are not integrated. On integration, basis Trade AI Trade AI
P approval in trade AI, the transaction in Finacle can be auto
populated and completed. Verifier approves
transaction
Maker filters out Verify auto populated Reference/
Swift message auto
Finacle the respective details and fill in the Transaction ID SM releases swift
generated
transaction additional details generated

P Integration between Trade AI, Finacle & SWIFT can assist in

verification and release of swift messages directly from

Swift Swift sent End

 Terminal Process
Issuance - LC / IRU/ Guarantee System Exception
P
I
Pain-points
Insights / Information
Indirect flow
Team Decision Box
System Integration

New transaction is
Application received from
Signature Verification with created and
Start client along with Trade AI
LOAD documents are
supporting documents
uploaded
I Signature verification is required
in case of manual application

Send additional Verify/ edit/ update

Track moves YES Data Fields are
data request/ NO Approval data populated
to COMP Confirm verified auto
clarification email received? against the
queue ? populated
to client documents submitted
NO

YES Send additional data

request/ clarification
email to client

Email is sent to LOAD team Finacle reference number Transaction Verifier assigns
and CRM confirming is updated against the moves to verifier transaction to SM
pricing and limit relevant transaction queue to release Swift

Finacle
Finacle
Trade AI and Finacle are not integrated. Trade AI
On integration, basis approval in trade AI, Trade AI All approvals only on workflow and
P
P the transaction in Finacle can be auto same auto flows to Finacle Verifier approves
populated and completed.
transaction
Transaction is created against
Reference/ Transaction Swift message auto
Finacle the CIF ID and required details SM releases swift
ID generated generated
are filled in P Swift message creation, verification
and release can be done via workflow
>> CBS >> Swift

Swift Swift sent End

 Terminal Process
Document Check/ Lodgement System Exception
P
I
Pain-points
Insights / Information
Indirect flow
Team Decision Box
System Integration

Document Examination
Documents received from Under event document
Scan the documents All documents received are
Start beneficiary/ advising bank Trade AI examination – a new
received in hardcopy uploaded in system
via email or hardcopy transaction is created

Transaction on Hold and email/ NO Track will move

Approval Edit/ update the data as Data is auto
swift sent to the customer/ to compliance Confirm
received? per the documents populated
advising bank for more details as queue

YES

Evaluation – Update the Update comments in Discrepant NO Transaction will Transaction will
All approvals in
checklist/questions in discrepancy Tab for the documents move to L2 move to verifier
place
the system discrepancies highlighted ? queue queue

YES
Trade AI and Finacle to be
YES P
Lodgement integrated. On approval in
trade AI, the transaction in
Discrepancy
Finacle to be auto created and
approved by Finacle reference number to be
issuing synced. Finacle
bank?

NO

Maker will lodge the documents

Finacle

Maker will lodge the documents Reference number (Bill ID)

generated

Advise of refusal will be sent End

 Terminal Process
LC/ IRU/ Guarantee – Claim Settlement/ Payment System Exception
P
I
Pain-points
Insights / Information
Indirect flow
Team Decision Box
System Integration

Cover letter received

Start Loan Admin Team
from presenting bank
P All transactions due should be with payment instruction
auto displayed in the workflow.

End of day, report is generated Filter the Send email to loan admin team to Check if YES
Share the details/advice
from Finacle with details of all transaction due obtain details of the account from account is the account to be used Finacle
pending Bills and maturity date for payment which payment is to be processed funded? for payment
NO

Book a loan Realization menu –

P Basis cover letter, details to be Enter Bill ID
auto populated in Trade AI
(already in place for LC
Issuance) and then flow to
Finacle

Update corresponding
Team to verify the Swift messages will be Update charges and all Enter details of the
Accept and Submit bank details as per the
details in swift msg auto generated other details account to be debited
cover letter

Create a new Enter Bill reference

Reference number/ Bill Transaction in verifier
Trade AI transaction under Trade number generated from Upload cover letter
ID is generated queue
Payment Finacle

Verifier assign the On approval, swift

Auto entries will be Verifier approves the
transaction to SM to Trade AI messages will be auto Finacle
posted in Finacle transaction
release Swift routed to Swift portal

Swift SM to release Swift End

 Terminal Process
Export Bills Under LC/ Advising - Inward Payment/ Settlement System Exception
P
I
Pain-points
Insights / Information
Indirect flow
Team Decision Box
System Integration

Under event document

Documents received client Scan the documents All documents received are
Start Trade AI examination – a new
(Exporter) received in hardcopy uploaded in system
transaction is created

Transaction on Hold and email is NO Track will move

Approval Edit/ update the data as Data is auto
sent to the customer for more to compliance Confirm
received? per the documents populated
details queue

YES

Evaluation – Update the Transaction will Transaction will Maker will lodge the
All approvals in Reference number
checklist/questions in move to L2 move to verifier Finacle documents against that
place (Bill ID) generated
the system?? queue queue particular bill

Transaction will Send email to loan admin team to Bank will receive the Issuing Bank will Dispatch the
be created against Finacle obtain details of the account to notification/swift once payment process the documents to
the Bill and CIF be credited is received in Nostro account payment Issuing Bank

All corresponding details, Enter Bill reference

Reference number/ Bill Create a new Update all relevant
account number, chargers Trade AI number generated from
ID is generated transaction details
etc will be updated Finacle

Intimation is sent to the Auto entries will be Verifier approves the Transaction in verifier
End Finacle
customer posted in Finacle transaction queue
 Terminal Process
Payments – AfPay (Re-route) and Queries System Exception
P
I
Pain-points
Insights / Information
Indirect flow
Team Decision Box
System Integration

Swift Extract 940 report Filter out transactions EOD, send email to Close/Update the
Transaction
for Inward Swift related to Treasury respective teams with transaction basis End
put on Hold
messages and Finance all transaction details their comment

Start Workflow
All Tasks – It has all the Filter out transaction Manually assign the Verify the nature of transaction
Inward Swift msgs (Inflow, related to Banking transaction amongst the basis swift message and message
outflow, queries, etc) Operations team members type (Re-route or queries)

Re-route: PACS, 910, 103, 200, 202, 299, 999 Queries: 199
Finacle Send email/ swift to
customer to obtain
IFT - Filter out transaction clarification
basis amount or CIF ID
Transaction is put on hold
Transactions are Swift message will auto until query is replied to
STP basis swift Finacle generated

I • Debit and Credit Verify if transaction is Respond to query via

account number, processed swift/email as required
• Accounting entries
• Amount Update comment – “STP”
Is CIF ID Workflow
(applied STP, authorise swift)
populated for Update the details against
Update comment – “STP”
Workflow both Sender the transaction
(No Swift is sent)
Yes and Beneficiary NO Transaction in
Internal in Workflow External verifier queue
Transaction in verifier Close
queue Verifier approves Swift
Finacle

Verifier approves and Verifier closes the End

End Workflow
closes the transaction transaction
 Terminal Process
Payments – Outward / Fixed Deposit/ Account Management System Exception
P
I
Pain-points
Insights / Information
Indirect flow
Team Decision Box
System Integration

Only in case of Outward Approval from

treasury team is
obtained
YES

Application (cover letter) Client relations Verification of application Transaction NO Cross YES Exchange rate and
Start received from client along teams performs against the supporting value > USD currency timeline obtained
with supporting documents call back documents and signature 1mn transaction from treasury team

NO

Finacle

Outward - Enter transaction

details, amount, customer,
beneficiary etc

Update all Reference number Obtain Interest FD - Open top up Create a new transaction
Create a new
the details Workflow will be generated in rate details from deposit against - for that CIF Id basis the
task/case
and fields Finacle treasury team Fill in the details nature of transaction

Account Management - • Account opening request

I
Open/Delete/Amend the will flow from front office
account as required - fill in to compliance and then
payments team
the required details
• Delete/Amend request can
be either via customer/RM
or swift
Update Finacle Transaction in Verifier to approve Verifier to close the
Finacle Workflow End
reference number here verifier queue the transaction transaction
 Terminal Process
Onboarding and KYC System Exception
P
I
Pain-points
Insights / Information
Indirect flow
Team Decision Box
System Integration

Front Office – CLRE (Client Relations) Department COMP (Compliance)

Inputs customer During Auto-screen failure, Once the data is screened,

Uploads all mandatory
CLRE onboards the information on COMP reviews by the system flags in case of
documents under ‘KYC’
Start Salesforce Customer through the ‘Details’ World-Check individually screening the missing information under
section tab in ‘Notes &
the Front Office section tab on the name, company name, and the ‘KYC/ CDD status’
Attachments’ tab
Salesforce portal sanctions on World Check section tab

SAS
I • SAS enables Transaction
I
Monitoring, CRR (Customer
Risk Ranking), and CDD
(Customer Due Diligence)
P • CLRE cannot edit the
information once uploaded
• All details get uploaded
manually on Salesforce
CDR
• All the data gets pushed to
CDR
• It’s a single repository
where the Bank’s customer
data are collected from the
source systems (Salesforce,
Finacle, SAP, Quantum)
II • The information moves to I • KYC/ CDD Status shows ‘in
COMP for further scrutiny progress’ if data is missing
• Though World-Check is and flagged further under
integrated, screening is also ‘Missing Account’s
done manually and Documents
independently for certain • Other status like – Blacklisted,
exceptional cases Declined, and Expired is
marked on a company
screening basis
If the report is CDD Report prepared by
compliant, then the Report COMP and sent for approval
YES
Finacle MCC will change the Approv Convene to the Management
KYC/ CDD status to e? Compliance Committee
‘Confirmed’ (MCC) for certain cases
NO I • Two levels of Compliance checks:
• 1st screening for basic
Once ‘Confirmed’, the automated If the report is Risk Assessment (RA)
Onboarding completion intimation is not appropriate, • 2nd screening via CDD
triggered in the system. Additionally, then the MCC report by approval from
it is updated manually under the will change the MCC
‘Chat & Email’ tab to CLRE team and KYC/ CDD status
the ‘CIF’ is created in Finacle to ‘Declined’

End
 Terminal Process
Credit Assessment System Exception
P
I
Pain-points
Insights / Information
Indirect flow
Team Decision Box
System Integration

Origination Team Preparation of term Review by PAC

sheet and proposing (Pre-Assessment
structure Committee)
Client engagement Obtaining Submission to
I High level checks - if the client requirements are
Start and understanding in line with Bank's mandate, strategy Approval as per Salesforce Director and Global
their requirements the mandate Head of CRAS
Review by Head
Preparation of Memo of Origination
Team
I Green Lighting Route: In Case of Exception
cases - Afreximbank Trade Facilitation
Programme
Evaluation if
Risk can be Check
Enter data manually Obtain ESG clearance Obtain clearance YES Assign
mitigated Generate Risk Risk Rating completen
depending on Nature from Risk Management from Compliance transaction to
Rating Report Platform ess of
of Product & Segment Department for KYC Credit Officer
documents
NO
NO
Rating
within Send to
Bank’s Risk Origination
YES Appetite I Depending on nature of the Team
case and requirements
Collect information Appoint Prepare Credit Strong and YES Upload the
Model Hosting Generate Facility
from Internal and Independent Memo (Credit Satisfactory Salesforce Memo in
Platform Risk Rating Report
External Sources Technical Consultant Assessment) grades? Salesforce
I Dual Risk Rating NO
I Standard Template
Approach: Rating the
depending on the
Borrower and Facility
nature of Facility Decline the
application
with reason

Within
YES YES Presented to Memo is review/
Communicate to Communicate to CRECO
End Approved? CRECO for approved by SM
Origination Team Legal Team Delegated
approval & Director
Authority?
Origination team Legal Team records the NO
I I
releases approval and sends it to Loan NO
approval letter Administration Team Decline
to client application
Executive Committee
with Reason
 Terminal Process
Loan Administration System Exception
P
I
Pain-points
Insights / Information
Indirect flow
Team Decision Box
System Integration

Pre-Disbursal and Disbursal LEGA (Legal Department)

sends the Credit Facility Inputs customer Check Pre- Check signed
Transaction Check from
Agreement and details like disbursement due Agreement with
Allocation by Laserfiche Forms the COMP if
Start Email Approved Credit Memo Borrower, diligence and all required
SM to the team (workflow) KYC is
to LOAD along with the Country, upload mandatory documents and
members completed
Facility Reference Amount documents CPs
Number (FRN)
P If a discrepancy occurs, it is
highlighted and taken back to correct

YES If Limit I Manager and Senior

is < USD Manager both review the
50 mn documents as part of the
process one after another
NO
In case of The facility is If it is > USD 50 mn
Is disbursal Enter details If there is any Re-check for
internal YES ready for gets final approval
account manually along with discrepancy, they signing mandates
transfer, LOAD Finacle utilization and from the D-BAOP
within the limit and take it back for and documents
will disburse it, flagged positive (Director of Banking
Afrexim? authorize it correction submitted
case is closed for disbursement Operations)
NO
I Major tasks of LOAD: I Utilization request is triggered
In case of disbursement
• Facility Certification Issuance post-disbursement checks. If
remitted outside Afrexim
• Loan drawdown & authorisation Operational CPs are done, then
End bank, LOAD triggers the
• Disbursement & utilization within 3-5 business days
same to PASE for
control disbursement will happen
disbursal

Middle Office – LOAD (Loan Administration) Unit CQAS LORE

Post-Disbursal (Credit Quality Assurance Unit) (Loan Remediation) Team
Periodic Review of
Liaising with client
Financial Statements, Customer Follow up Customer Follow up Customer Follow up Customer Follow up
relation team to
Finacle Portfolio, Annual for future payment for accounts with for accounts with for accounts with
resolve any
Report Submission as dues 30 DPD DPD up to 90 >90 DPD
discrepancy
defined in FC
Annexure II
Annexure II A - Assumptions
Sr. No. Details
Process flow and L2 activities have been determined basis the information shared by FPR during workshop calls for respective
1
products

For data on transaction volume and customer base, we have relied on information provided by the respective team via
2
questionnaire over email

Annexure II B
Particulars Data

Questionnaire
Questionnaire

Detailed L2 Assessment – Prioritization Framework Detailed

Assessment
Annexure II C - Abbreviations
Abbv. Full Form Abbv. Full Form
AML Anti Money Laundering CBS Core Banking System
D-BAOP Director – Banking Operations Department CRR Customer Risk Ranking
BUSU Business Support Unit DPD Days Past Due
CDD Customer Due Diligence IFT Inquire Financial Transaction
CLRE Client Relations Department MCC Management Compliance Committee
COMP Compliance SM Senior Manager
CP Conditions Precedent STP Straight Through Processing
CRAS Credit Assessment Department
CRECO Credit Committee
CRMP Credit Risk Management Policy
CQAS Credit Quality Assurance Unit
EVPs Executive Vice Presidents
FI Financial Institution
KYC Know Your Customer
LAA Loan Administration Agent
LC Letters of Credit
LOAD Loan Administration Unit
LORE Loan Remediation
LEGA Legal Department
PASE Payment Services Unit
RMA Relationship Management Authorisation
SLA Service Level Agreement
SME Small and Medium Enterprise
TRSE Trade Services Unit
USD United States Dollar